Guangzhou Construction Law Lawyer

Construction project payment disputes can be resolved through negotiation, mediation, arbitration, or litigation. The specific approach depends on the contract agreement and the specifics of the case. First, it is necessary to sort out completion settlement materials, confirm the project volume and payment amount, and collect evidence such as visa changes and correspondence records. If there is a valid arbitration clause in the contract, arbitration shall be chosen; otherwise, litigation may be filed. It is recommended to first send a payment demand letter or lawyers letter to urge settlement, and promptly initiate legal procedures if unsuccessful.

Under the Civil Code, if the developer fails to pay the price as agreed, the contractor may urge the developer to pay within a reasonable time limit. If the developer fails to pay upon expiration, the contractor may agree with the developer to discount the project, or may request the court to auction the project in accordance with the law, and the compensation for the construction project price shall be paid in priority from the proceeds of the discount or auction. The priority right must be exercised within 18 months from the date when the construction project price falls due.

First, determine the nature and scope of the quality problem through on-site inspection and technical appraisal. Clarify the responsible party — whether it is a design issue, construction quality issue, material issue, or improper use issue. Both parties may entrust a third-party appraisal agency to conduct quality identification and loss assessment. Negotiate a solution based on the identification results — repair, rework, compensation for losses, etc. If negotiation fails, a lawsuit or arbitration may be initiated. It is important to preserve evidence of quality issues in a timely manner.

Under the law, construction project contracts shall be in written form. However, in practice, if both parties have actually performed their main obligations and the other party has accepted them, even if no formal written contract has been signed, the contractual relationship is generally deemed established. However, oral agreements face great difficulties in proving the specific content of the contract in the event of a dispute. It is advisable to sign a formal written contract as much as possible, and to supplement evidence such as meeting minutes, correspondence records, and visa documents during performance.

It depends on the specific situation. If the project has not been completed and accepted but the employer has already used the project, the employer may not claim quality rights on the ground that the quality does not conform to the agreement, and the contractor may claim project payment. If the employer delays acceptance without justified reasons, the contractor may also claim payment in accordance with the contract. However, if the project is truly substandard in quality and has not been accepted, the contractor may need to rectify and complete acceptance first before claiming payment.

Construction delay liability is determined based on which party is at fault for the delay. If the delay is caused by the contractors reasons, the contractor shall bear the liability for breach of contract for delay, including liquidated damages for delay and compensation for losses caused to the employer. If the delay is caused by the employers reasons (such as delayed payment, delayed provision of drawings or materials, design changes, etc.), the contractor may apply for extension of time and claim losses and expenses caused by the delay. The key is to retain evidence such as visa changes and correspondence records during the performance process.

The general contractor is responsible to the employer for the entire project. Subcontractors are responsible to the general contractor for their subcontracting work. The general contractor and the subcontractor bear joint and several liability to the employer for the subcontracting work. If the quality of the subcontracting work has problems, the employer may claim against either the general contractor or the subcontractor, and the party responsible shall bear the final responsibility. Illegal subcontracting and unqualified subcontracting will lead to the invalidity of the subcontract contract.

Construction project disputes generally take a long time, usually 6 months to 2 years or even longer. The main reasons are: large amount in dispute, many parties involved, complex technical issues, and often requiring judicial appraisal (quality appraisal, cost appraisal, duration appraisal, etc.). The appraisal time can range from several months to more than half a year. In addition, if there are appeals, second instance procedures, enforcement procedures, etc., the time will be longer. A professional lawyer can promote procedural efficiency through reasonable strategies.