1. What is the general quality assurance of construction projects?
The Civil Code (202 1 to 1 Implementation) does not stipulate the amount of quality deposit, but the Ministry of Construction has a standard contract, which stipulates that the quality deposit is 3% of the total project cost, and general projects are implemented according to this ratio.
During the warranty period, the construction unit has the obligation to repair the project. If this obligation is not fulfilled, the construction unit can find someone else to repair it, and the required expenses will be deducted from the warranty fund. The rest must be paid by the construction unit after the warranty period ends. The Interim Measures for the Management of Construction Project Quality Deposit issued by the Ministry of Construction and the Ministry of Finance stipulates that the construction project quality deposit (warranty deposit) (hereinafter referred to as the deposit) refers to the funds agreed by the employer and the contractor in the construction project contract, which are reserved from the payable project funds to ensure the contractor to repair the defects of the construction project during the defect liability period.
2. What are the provisions of the construction project quality deposit?
1, Determination of Defects Liability Period
The so-called defect refers to the fact that the quality of the construction project does not meet the mandatory standards, design documents and contract stipulations. The defect liability period is generally 6 months, 12 months or 24 months, which can be specified by both parties in the contract.
2, the proportion of the reserved deposit
For all or part of the construction projects invested by the government, the deposit shall be settled at the ratio of about 3% of the total project price. If the social investment project adopts the method of reserved deposit, the proportion of reserved deposit can be implemented with reference.
3. Return of quality deposit
During the defects liability period, the contractor shall earnestly perform the responsibilities stipulated in the contract, and after the expiration, the contractor shall apply to the employer for refund of the deposit.
After receiving the contractor's application for refund of the deposit, the Employer shall verify with the contractor in accordance with the contract within 14 days. If there is no objection, the employer will return the deposit to the contractor within 14 days after verification. If the loan is not paid back within the time limit, the interest shall be calculated and paid according to the loan interest rate of the bank for the same period from the date of overdue, and the employer shall bear the liability for breach of contract. If the Employer fails to reply within 14 days after receiving the contractor's application for refund of the deposit, and fails to reply within 14 days after the reminder, it shall be deemed as agreeing to the contractor's application for refund of the deposit.
Article 157 of the Civil Code: After a civil juristic act is invalid, revoked or deemed invalid, the property acquired by the actor as a result of the act shall be returned; If it is impossible or unnecessary to return it, it shall be compensated at a discount. The party at fault shall compensate the other party for the losses thus suffered; If all parties are at fault, they shall bear their respective responsibilities. Where there are other provisions in the law, those provisions shall prevail.
To sum up, after the Employer hands over the project to the Contractor, both parties will sign the project contract, stipulating the amount and payment method of the quality deposit, and the proportion will be 3% of the total project cost. During the warranty period, if there are problems in the quality of the project that need maintenance, the expenses incurred shall be deducted from the warranty fund. After the warranty period ends, the employer will return the rest.