What are the legal risks of subcontracting construction projects?

Article 28 of the Construction Law of the People's Republic of China stipulates that "the contractor is prohibited from subcontracting all the construction projects contracted by it to others, and the contractor is prohibited from subcontracting all the construction projects contracted by it in the name of subcontracting after dismemberment", and the "Regulations on the Quality Management of Construction Projects" also stipulates that "the construction unit shall obtain the corresponding level of qualification certificate in accordance with the law and contract the project within the scope permitted by its qualification level" It is forbidden for the construction unit to exceed the business scope permitted by the qualification level of the unit or to contract the project in the name of other construction units. It is forbidden for the construction unit to allow other units or individuals to contract the project in the name of the unit", and "the construction unit shall not subcontract or illegally subcontract the project".

From the above-mentioned legal provisions, it can be seen that China's law characterizes project subcontracting as an illegal act, and the country expressly prohibits project subcontracting. For the implementation of the project subcontracting of the construction unit, the construction administrative department will be ordered to correct, confiscate illegal gains, and impose a fine, at the same time can also be ordered to suspend business for rectification, reduce the qualification level of the construction enterprise, if the circumstances are serious, but also revoke the qualification certificate of the construction unit.

Zhenhui construction engineering lawyer sorted.

Legal analysis: The legal consequences of subcontracting are: 1. The subcontracting act is invalid. 2. The illegal gains obtained by the subcontractor due to illegal subcontracting of construction projects shall be confiscated. 3. If the quality of the construction project is qualified, the subcontractor can directly claim the project price from the employer.

Basis of the law: Article 62 of the "Quality Management of Construction Projects" violates the provisions of these Regulations, and the contractor subcontracts or illegally subcontracts the contracted project, it shall be ordered to make corrections, confiscate the illegal gains, and impose a fine of not less than 25% but not more than 50% of the survey fee and design fee agreed in the contract on the survey and design unit; The construction unit shall be fined between 0.5% and 1% of the contract price of the project; may be ordered to suspend business for rectification and reduce the qualification level; where the circumstances are serious, the qualification certificate is revoked. If the project supervision unit transfers the project supervision business, it shall be ordered to make corrections, confiscate the illegal gains, and impose a fine of not less than 25% but not more than 50% of the supervision remuneration agreed in the contract; may be ordered to suspend business for rectification and reduce the qualification level; where the circumstances are serious and the qualification certificate is revoked.

Legal analysis: Outsourcing refers to the act of handing over the survey, design and construction of the construction project to a general contractor for completion or the contractor handing over one or more items of the survey, design and construction of the construction project to a contractor for completion in the process of concluding a construction contract. 1.

the risk of advance payment of remuneration for labor; When the contractor does not have the construction qualifications and does not have the main qualifications of the employer, and the remuneration of the workers hired by him is delayed, the laws and regulations will place the responsibility for paying labor remuneration on the qualified construction enterprise at the next higher level. 2.the risk of becoming an employer in the employment relationship; Once the two parties are deemed to have an employment relationship, theoretically, the construction enterprise as the employer shall bear a series of employment responsibilities such as the conclusion of labor contracts, working hours, payment of wages, overtime pay, social insurance, etc., and will be subject to the strict constraints of labor security laws.

3.the risk of assuming liability for work-related injuries; 4.the risk of being held criminally liable for refusal to pay labor remuneration; If the construction company defaults on the payment of the contractor, it will first receive a notice of payment from the labor and social security supervision department, and if the construction company does not handle it properly, then it may be subject to criminal prosecution for refusing to pay labor remuneration.

Legal basis: Interpretation on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Construction Contracts Article 6 Where the parties have an agreement on the advance and the interest on the advance, and the contractor requests the return of the advance and its interest in accordance with the agreement, it shall be supported, except for the part where the agreed interest calculation standard is higher than the interest rate of the same type of loan issued by the People's Bank of China for the same period. If the parties have no agreement on the advance, it shall be handled in accordance with the arrears of the project.

Where the parties have not agreed on the interest on the advance, and the contractor's request for payment of interest is not supported.

Legal analysis: project subcontracting is illegal and prohibited by the state. For the implementation of the project subcontracting of the construction unit, the construction administrative department will be ordered to correct, confiscate illegal gains, and impose a fine, at the same time can also order Yu Hao to suspend business for rectification, reduce the qualification level of the construction enterprise, if the circumstances are serious, but also revoke the qualification certificate of the construction unit.

Legal basis: According to the first paragraph of Article 67 of the Construction Law, "if the contractor subcontracts the contracted project, or subcontracts in violation of the provisions of this Law, it shall be ordered to make corrections, confiscate the illegal gains, and impose a fine, and may be ordered to suspend business for rectification and reduce the qualification level; where the circumstances are serious, the qualification certificate is revoked. ”

Summary. First of all, illegal subcontracting is invalid.

Second, the illegal gains obtained by the subcontractor due to the illegal subcontracting of the construction project shall be confiscated.

Thirdly, if the quality of the construction project is qualified, the subcontractor can directly claim the project price from the employer.

Finally, if the project is subcontracted, the subcontractor may also be subject to administrative penalties.

What are the legal consequences of project subcontracting?

First of all, illegal subcontracting is invalid. Second, the illegal gains obtained by the subcontractors as a result of the illegal subcontracting of construction projects shall be confiscated. Thirdly, if the quality of the construction project is qualified, the subcontractor can directly claim the project price from the employer.

Finally, if the project is subcontracted, the subcontractor may also be subject to administrative penalties.

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