Recently, the State Railway Administration disclosed that China Railway 16th Bureau Group Co., Ltd. had subcontracted projects in railway construction and was punished for violating the Regulations on Quality Management of Construction Projects.
(Source: State Railway Administration)
Details of administrative penalties show that the inspection found that China Railway XX Bureau Group Co., Ltd. had subcontracted projects in the construction of railway projects within the jurisdiction of Shenyang Railway Supervision and Administration Bureau, which violated the provisions of Article 25, paragraph 3, of the Regulations on Quality Management of Construction Projects. On May 19, 2023, Shenyang Railway Supervision and Administration Bureau, in accordance with the provisions of Article 63, paragraph 1, of the Regulations on Quality Supervision and Management of Railway Construction Projects, ordered China Railway XX Bureau Group Co., Ltd. to make corrections and imposed an administrative penalty of 1.398712 million yuan. According to Article 71 of the Regulations on Quality Supervision and Management of Railway Construction Projects, Zhang Mou, the directly responsible person in charge, and Ma Mou, the other directly responsible person, were fined 699.35 million yuan respectively. Article 25 of
the Regulations on Quality Management of Construction Projects stipulates: "Construction units shall obtain qualification certificates of corresponding grades according to law and contract projects within the scope permitted by their qualification grades." "Construction units are prohibited from contracting projects beyond the business scope permitted by their qualification level or in the name of other construction units.". It is forbidden for construction units to allow other units or individuals to contract projects in the name of their own units. "Construction units shall not subcontract or illegally subcontract projects." If one of the following circumstances exists in the determination
of
illegal subcontracting, it belongs to subcontracting:
(1) The construction unit transfers all the contracted projects to other units or individuals for construction;
(2) After dismembering all the contracted projects, the general contractor or specialized contractor transfers them to other units or individuals for construction in the name of subcontracting;
(3) The general contractor or the specialized contractor fails to set up a project management organization at the construction site or to assign the project manager, the technical manager, the person in charge of quality management, the person in charge of safety management and other major management personnel, fails to fulfill the management obligations, and fails to organize and manage the construction activities of the project;
(4) If the general contractor or specialized contractor fails to fulfill its management obligations, it only collects fees from the actual construction unit, and the procurement of major building materials, structural fittings and engineering equipment is carried out by other units or individuals;
(5) The scope contracted by the labor subcontractor is the whole project contracted by the general contractor or the specialized contractor, and the labor subcontractor calculates the whole project price except the "management fee" handed over to the general contractor or the specialized contractor;
(6) The general contractor or specialized contractor directly or in a disguised form transfers all the contracted projects to other units or individuals for construction in the form or name of cooperation, joint venture or individual contracting;
(7) Other subcontracting acts stipulated by laws and regulations. Determination
of
illegal subcontracting If one of the following circumstances exists, it is illegal subcontracting:
(1) The construction unit subcontracts the project to an individual;
(2) The construction unit subcontracts the project to a unit that does not have the corresponding qualification or safety production license; The construction unit hands over part of the contracted project to other units for construction, which is not stipulated in the
construction contract and is not recognized by the construction unit;
The overall construction contractor subcontracts the construction of the main structure of the housing construction project to other units, with the exception of the steel structure project;
(5) The specialized subcontracting unit subcontracts the non-labor part of the contracted specialized project;
(6) The labor subcontracting unit subcontracts the contracted labor service;
(7) The labor subcontractor calculates the expenses for major building materials, revolving materials and large and medium-sized construction machinery and equipment in addition to the labor operation expenses;
(8) Other illegal subcontracting acts stipulated by laws and regulations. The first paragraph of Article 67 of the Construction Law of the
People's Republic of China stipulates: "If a contractor subcontracts a contracted project or subcontracts in violation of the provisions of this Law, it shall be ordered to make corrections, confiscate its illegal income and impose a fine, and may be ordered to suspend business for rectification and reduce its qualification level; if the circumstances are serious, its qualification certificate shall be revoked." Article 62 of the Quality Control of Construction Projects promulgated and implemented by the
State Council stipulates: "Where a contracting unit, in violation of the provisions of these Regulations, subcontracts or illegally subcontracts a contracted project, it shall be ordered to make corrections, its illegal gains shall be confiscated, and the survey and design unit shall be fined not less than 25% but not more than 50% of the survey and design fees stipulated in the contract." The construction unit shall be fined more than 0.5% and less than 1% of the project contract price; it may be ordered to suspend business for rectification and lower its qualification level; if the circumstances are serious, its qualification certificate shall be revoked. A project supervisory unit which transfers the business of project supervision shall be ordered to make a rectification, its illegal gains shall be confiscated, and it shall be imposed a fine of not less than 25% but not more than 50% of the supervisory remuneration stipulated in the contract; it may be ordered to suspend business for rectification and lower its qualification level; if the circumstances are serious, its qualification certificate shall be revoked. It can be seen that the subcontracting behavior of our laws and regulations is not only strictly prohibited, but also stipulates more severe punishment measures.
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