[jianjianjiantong] summary of the latest EPC policies! National ministries and commissions vigorously promote! All over the country have recently issued papers!


Jianjiantong media ID: jianzhong001 in recent years, there have been many important policies related to the construction industry, such as bidding, registration certificate and new qualification reform

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It is not difficult to see that the curtain of the construction industry reform has opened

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The construction industry as a national pillar industry, in the key period of seeking reform breakthrough, the state further promotes the general contracting mode

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In recent years, it can be called “the year of reform” for China’s engineering general contracting

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The development of EPC has gone through the initial stage, the exploratory stage, and now it has entered the accelerated stage

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In May 2016, the Ministry of housing and urban rural development issued several opinions on further promoting the development of general contracting

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The opinions required to carry out the pilot project general contracting, and made clear the problems such as consortium bidding, qualification access, responsibilities of general contractors, etc

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In February 2017, the general office of the State Council issued the opinions on promoting the sustainable and healthy development of the construction industry

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The opinions required to speed up the implementation of EPC, pointed out that our country’s construction industry development organization mode was backward, and proposed to solve the above problems by implementing EPC and cultivating the whole process consultation

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In 2017, the national standard “code for general contracting management of construction projects” was issued, which made specific provisions on general contracting related contracting management, contract and settlement, responsibilities and obligations of participating units, and then successively issued policies and regulations on general contracting construction permit, project price and other aspects

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In December 2019, the Ministry of housing and urban rural development and the national development and Reform Commission jointly issued the measures for the general contracting management of housing construction and municipal infrastructure projects, which will be officially implemented on March 1, 2020

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The details are as follows: the general contracting management measures clearly stipulates that the construction unit shall bear the risk of the part where the fluctuation range of the prices of main engineering materials, equipment and labor exceeds the contract range compared with the base price at the time of bidding

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1

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The risks undertaken by the construction unit include: the price of main engineering materials, equipment and labor fluctuates more than that agreed in the contract when compared with the base price at the time of bidding; the change of contract price caused by the change of national laws, regulations and policies; the change of engineering cost and construction period caused by unforeseen geological conditions; the change of engineering cost and construction period caused by the construction unit Change of project cost and construction period caused by force majeure

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The specific content of risk sharing shall be agreed by both parties in the contract

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The construction unit shall not set unreasonable construction period or arbitrarily reduce the reasonable construction period

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2

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Mutual recognition of construction and design qualification: construction units are encouraged to apply for engineering design qualification, and units with grade I or above construction general contracting qualification can directly apply for corresponding grade a engineering design qualification

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The performance of general contracting of corresponding scale projects can be declared as the performance of design and construction

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Design units are encouraged to apply for construction qualification

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Units that have obtained comprehensive qualification for engineering design, class a qualification for Industry and class a qualification for construction engineering can directly apply for class I qualification for general contracting of corresponding categories

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3

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General contractor: with engineering design qualification and construction qualification corresponding to the project scale

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Or a consortium may be formed by a design unit and a construction unit with corresponding qualifications

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If the design unit and the construction unit form a consortium, the leading unit shall be reasonably determined according to the characteristics and complexity of the project

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A general contracting unit shall not be an agent, project management unit, supervision unit, cost consulting unit or bidding agent of a general contracting project

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4

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Bidding or general contracting units shall choose the bidding method

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In the design, procurement or construction of a general contracting project, if any item falls within the scope of the project subject to bidding according to law and meets the scale standard specified by the state, the general contracting unit shall be selected by bidding

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The construction unit may put forward the requirements for the performance guarantee in the bidding documents, and require the bidding documents to specify the contents of the proposed subcontracting according to law; if there is a maximum bidding price limit, it shall specify the maximum bidding price limit or the calculation method of the maximum bidding price limit

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5

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Project contracting and subcontracting: for projects invested by enterprises, general contracting projects shall be contracted after approval or filing

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In principle, a government invested project adopting the mode of general contracting shall be contracted out after the preliminary design is approved

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For government invested projects with simplified approval documents and approval procedures, general contracting projects shall be contracted after the approval of corresponding investment decisions

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The general contractor may subcontract by way of direct contract

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6

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About the contract: the total price contract should be used in the general contract of enterprise investment project

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The form of contract price shall be reasonably determined for the general contracting of government invested projects

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If a total price contract is adopted, the total price of the contract shall not be adjusted except for the circumstances that can be adjusted as agreed in the contract

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The measurement rules and pricing methods of EPC can be stipulated in the contract

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In July 2020, the Ministry of housing and urban rural development issued the guidance on promoting the coordinated development of intelligent construction and building industrialization, accelerating the cultivation of EPC enterprises with the ability of intelligent construction system solutions, coordinating the whole industrial chain of construction activities, promoting enterprises to cooperate closely in various forms and collaborative innovation, and gradually forming a development mode with EPC enterprises as the core and relevant leading enterprises deeply participating Open industrial system

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In December 2020, the Ministry of housing and urban rural development officially issued the reform plan for the qualification management system of construction enterprises, which clearly states: actively cultivate the whole process engineering consulting service institutions, and provide professional services for owners to select qualified enterprises

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We will vigorously promote the general contracting of projects and guide enterprises to independently subcontract according to law

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022021 multi site project general contracting related policies released recently, the Shanghai Municipal Commission of housing and urban rural development issued the “Shanghai construction project general contracting management measures”, which will come into effect on May 1, 2021

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On February 4, 2021, the Department of housing and urban rural development of Zhejiang Province and the development and Reform Commission of Zhejiang Province issued the implementation opinions on further promoting the general contracting development of housing construction and municipal infrastructure projects, which will come into force on March 1, 2021

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On February 4, 2021, the Department of housing and urban rural development of Hubei Province and the development and Reform Commission of Hubei Province jointly issued the measures for the implementation of general contracting management of housing construction and municipal infrastructure projects in Hubei Province, which will come into force as of the date of issuance

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On February 9, 2021, the Department of housing and urban rural development of Heilongjiang Province issued the “letter on the implementation of general contracting and whole process engineering consulting services in the province’s housing construction and municipal infrastructure projects”, making it clear that the implementation of general contracting and whole process engineering consulting mode has been included in the key objectives and tasks of the province’s housing construction in 2021

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In order to implement the spirit of a series of documents issued by the State Council and the Ministry of housing and urban rural development, Zhejiang, Shanghai, Fujian, Guangdong, Guangxi, Hunan, Hubei, Sichuan, Jilin, Shaanxi and other places have successively issued relevant policies on EPC, focusing on the implementation of EPC mode in the field of housing construction and municipal construction.

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