Determination Of Invalid Building Construction Contract And Analysis Of The Legal Consequence

As the building project relates to the safety of life and property of public people, construction contract involves many kinds of laws, and administrative regulations, and there are many mandatory norms therein.In fact, as the intensive competition in construction market, in the process of project approval, tendering and bidding, contract signing and fulfilling, there are many acts against the law, such as illegal construction, collusion in tendering and bidding, contracting without relevant qualification, contract out to third party, illegal subcontract, etc. the dispute for contract effect are related to or involve with these acts. And in legal practice, how to judge the effect upon the contract is unavoidable.In general, contract effect status including four types, namely valid, invalid, uncertain, and can be canceled. But the effect status for building project construction contract mainly valid and invalid. In case the contract is invalid, the illegal act(s) shall breach the mandatory norm(s) of law or administrative regulations firstly, and then the mandatory norm(s) shall influence the effect of contract directly. In addition, the rationality of the current mandatory norms also shall be re-considered combined with the international practice and status. This dissertation will discuss the effect of contract under the familiar illegal acts.The building project construction contract usually has the characters of big object sum, long construction period, and complicated contract performance. Once the contract is confirmed invalid, the contract party's anticipation and final liability will be influenced directly, especially the serious consequence on final contract price, claim related to construction period or quality, the interest calculation, and the relevant administrative liabilities. Therefore, confirming the contract is invalid in only one part of the problem, the other part is how to evaluate the legal consequence thereafter. This dissertation will further discuss the legal consequence under invalid construct contract.