The Supreme People's Court released judicial interpretations and typical cases on construction contract disputes
2026-06-30
Construction quality is vital to the safety of people's lives and property, as well as the future heritage of cities. Today, the Supreme People's Court released the *Interpretation (II) of the Supreme People's Court on Several Issues Concerning the Application of Law in the of Cases Involving Disputes over Construction Project Construction Contracts* (hereinafter referred to as *Construction Interpretation II*) and typical cases. Chen Yifang, a member of the Adjud Committee of the Supreme People's Court and President of the First Civil Division, answered reporters' questions on relevant issues.
Chen Yifang pointed out that *Construction Interpretation II aims to thoroughly implement Xi Jinping Thought on the Rule of Law and the spirit of the Fourth Plenary Session of the 20th CPC Central Committee. By establishing adjudication rules that with the spirit of legal policies and economic laws, it guides market entities in the construction industry to strengthen their awareness of the rule of law, responsibility, and safety, promote the of construction project quality, and serve to guarantee the high-quality development of the construction industry. *Construction Interpretation II* consists of twenty-three articles. Except for Article 2, which stipulates the effective date, the remaining twenty-two articles address issues with significant disputes in judicial practice, mainly covering seven aspects: maintaining the order of fair competition in bidding; the practice of construction enterprises lending their qualifications; strictly ensuring construction project quality; clarifying the handling of contract invalidity and rescission; clarifying the adjustment and settlement methods for fixed- contracts; promoting the timely settlement of project payments; and clarifying the rules for exercising the priority right to receive payment for construction project costs.
To facilitate an accurate understanding of the relevant in *Construction Interpretation II*, the Supreme People's Court concurrently released six typical cases involving construction project construction contract disputes. Case 1 clarifies that if the employer knows about the lending qualifications when entering into a construction project construction contract, the person who lent the qualifications may request the employer to pay a compensation amount for the discount. In Case 2, the people's court applied the relevant provisions of the *Regulations on Ensuring the Payment of Wages to Migrant Workers* in accordance with the law, and ruled that the general contractor and subcontractors the corresponding payment responsibilities. Case 3 clarifies that the project cost for the completed part of a fixed-price contract can be determined using the proportional method. Case 4 clarifies that the auditing authority fails to issue an audit report for reasons not attributable to the contractor, the project cost can be determined through judicial appraisal. Case 5 clarifies that if the contractor leaves site after the rescission of the construction contract and the completed part of the construction meets quality standards, the period for returning the quality guarantee deposit shall be calculated from the date of leaving site. In Case 6, when the performance of the construction contract reached a deadlock, the people's court organized the employer, a certain real estate company, and the contractor, a certain construction company, to define the construction interface and fix relevant evidence, and then ruled on the rescission of the contract and the contractor's departure as preliminary measures in with the law. The release of these typical cases provides guidance for the people's courts to accurately apply *Construction Interpretation II*.
In the trial of construction cases, the peoples courts will always adhere to the principle of "viewing from a political perspective and handling from a rule-of-law perspective," earnestly practice "resolving disputes by clarifying rights responsibilities," and serve to guarantee the high-quality development of the construction industry. Taking the promotion of social fairness and justice and the enhancement of people's well-being as starting point and the ultimate goal, they will strive to ensure that the people feel fairness and justice in every judicial case. (Outlook New Era)
Edit:Shenchen Responsible editor:Linian
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