Clear and standardized deposit in the field of engineering construction, achieving significant results
In order to promote streamlining administration and delegating power, and effectively reduce the burden on construction enterprises, on June 23, 2016, the General Office of the State Council issued the "Notice on Clearing and Standardizing Security Deposits in the Field of Engineering Construction" (Guo Ban Fa  No. 49), which requires that all other security deposits, except for bidding, performance, engineering quality, and migrant workers' wages, be cancelled; Construction enterprises can pay through bank guarantees; The cancelled deposit shall be refunded to relevant enterprises before the end of 2016; Improve the margin management system, prohibit the establishment of new margin projects, and improve the integrity system. The Ministry of Housing and Urban Rural Development, in conjunction with the Ministry of Finance, the Ministry of Human Resources and Social Security and other departments, has conscientiously implemented the decisions and deployments of the State Council, taken effective measures to promote the work of cleaning and standardization, and achieved significant results.
One is to mobilize and deploy. The Ministry of Housing and Urban Rural Development, together with the Ministry of Finance and the Ministry of Human Resources and Social Security, jointly held a teleconference on the implementation of Document No. 49 of the State Administration for Housing and Urban Rural Development (2016), and made comprehensive arrangements for clearing and standardizing the deposit in the field of engineering construction; The Ministry of Housing and Urban Rural Development, in conjunction with the Ministry of Finance, issued a notice requiring all regions to carry out inspections in accordance with the principle of "one enterprise does not fall, one project does not fall" to ensure timely returns.
The second is to regularly report. Since August 2016, the Ministry of Housing and Urban Rural Development has regularly reported to various regions on the progress of clearing and standardizing the deposit work in the field of engineering construction, named and criticized areas where the work was not carried out effectively, and requested all regions to increase work efforts, reverse schedules, formulate targeted measures, establish accounts, implement responsible persons, clarify responsibilities, and ensure that tasks are completed on schedule by the end of 2016.
The third is to carry out inspections. In December 2016, the Ministry of Housing and Urban Rural Development conducted a special inspection on the clearance and standardization of engineering construction deposits in eight provinces and cities, including Sichuan, Jiangsu, and Shanghai. It urged all regions to accelerate work progress, improve deposit management systems, and ensure policy implementation.
The fourth is to improve the system. The Ministry of Housing and Urban Rural Development, in conjunction with the Ministry of Finance, has revised and issued the "Management Measures for Engineering Quality Guarantee Bonds", clarifying the requirements for the collection, return, and substitution of guarantee bonds.
The competent departments for housing and urban-rural development in various regions, together with relevant departments, actively take action, innovate work methods, and take various measures to ensure that policies are implemented effectively.
As of the end of December 2016, construction enterprises in various regions have used bank guarantees to replace cash deposits of nearly 120 billion yuan, activating their working capital. Accumulated refunds of various types of deposits from construction enterprises in various regions amounted to 49.65 billion yuan, of which 28.08 billion yuan should be cancelled; The total amount of bid guarantees, performance guarantees, project quality guarantees, and migrant workers' deposits that are overdue or overcharged is 21.57 billion yuan. After nearly half a year of cleaning and standardization work, it has effectively reduced the burden on construction enterprises, stimulated market vitality, and played an important role in promoting the healthy development of the construction industry.
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