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Notice on Cleaning up and Standardizing The Deposit in The Field of Engineering Construction issued by the State Office

Notice on Cleaning up and Standardizing The Deposit in The Field of Engineering Construction issued by the State Office

Notice on Cleaning up and Standardizing The Deposit in The Field of Engineering Construction issued by the State Office

2016-06-29 18:08

The General Office of the State Council has recently issued the Notice on Cleaning up and Standardizing the Deposit in the field of engineering construction (hereinafter referred to as the Notice), comprehensively deploying the cleaning up and standardizing the deposit work in the field of engineering construction.

The Notice points out that cleaning up and standardizing the deposit for construction projects is a necessary measure to streamline administration, delegate powers, strengthen regulation and optimize service reform. It is conducive to reducing the burden on enterprises, stimulating market vitality, developing credit economy, building a unified market, promoting fair competition and accelerating the transformation and upgrading of the construction industry.

From seven aspects, the notice puts forward the specific policies and measures to clean up and standardize the deposit in the field of engineering construction.

First, we will comprehensively clean up all kinds of deposits. The earnest money that construction enterprises need to pay in the course of project construction shall be abolished, except for the earnest money for bidding, performance, construction quality and wages of migrant workers, which are set up in accordance with laws and regulations. Cancellation of the security deposit, since the date of the notice issued, all stop collecting.

Second, change the way of margin payment. A bank guarantee system shall be implemented for the retained bid bond, performance bond, construction quality bond and wage bond of migrant workers, and construction enterprises may pay by way of bank guarantee.

Three is to return the deposit on time. All localities should return the cancelled deposit to relevant enterprises before the end of 2016; Ensure that the deposit retained is returned on time. In case of failure to return the deposit in accordance with the provisions or the contract, the earnest money collecting party shall pay the construction enterprise a penalty for late return.

Fourth, strict management of project quality margin. The upper limit of the reserved proportion of the project quality guarantee deposit shall not be higher than 5% of the total settlement amount of the project price. Where the performance bond has been paid before the completion of the project, the construction unit may not reserve the quality bond at the same time.

Fifth, we will implement differentiated payment of wage deposits for migrant workers. For enterprises that do not have wage arrears within a certain period of time, measures for reducing or exempting wages shall be implemented; In case of wage arrears, the contribution ratio shall be appropriately increased.

Sixth, standardize the margin management system. We will promptly revise relevant laws and regulations and improve the system and specific measures for margin management. As for the cancelled security deposit, we should promptly revise or abolish the system provisions inconsistent with the requirements of the liquidation regulations. While clearing and standardizing the margin, a new mechanism for supervising and restricting construction enterprises is gradually established by bringing it into the credit system.

Seventh, it is strictly prohibited to set up new margin projects. Without the approval of the State Council, no region or department shall set up any new deposit project in the field of engineering construction in any form. We will comprehensively promote the disclosure of earnest money information in the field of project construction, establish a reporting and investigation mechanism, regularly publicize the investigation results, and expose typical cases of illegal collection of earnest money.

"Notice" requirements, each region, each department should strengthen the organization and leadership, formulate specific plans, strengthen supervision and inspection, actively yet prudently advance, will practically clean up and standardize the construction of the deposit work in place. The Ministry of Housing and Urban-Rural Development and the Ministry of Finance should closely follow up the progress, strengthen overall planning and coordination, and seriously investigate and hold accountable those who fail to comply with the requirements and fail to report the collection of deposits, so as to ensure the effectiveness of the clean-up and regulation work.

All rights reserved:Zhongyang Construction Group  Address: Nanchang City, Jiangxi Province, Honggu Beach Green Road 500, HSBC will be a 9 floor   

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