On The Principle Of Changed Circumstances In The Construction Contract For Construction

Construction Contract has many characteristic, such as the long-term, the large targetamount, many industry involved and so on, In the practice, because of social policy,economic factors and many other changes of circumstance leads to difficulties in theperformance of the contract now and then. Though in2009, the second explanation of theContract Law clearly provided the principle of change of circumstances, but whether theprinciple can apply in the Construction Contract, and how to apply, there is muchcontroversy in the theory and the practice. This article intend to sort out the problems ofapplication of the change of circumstances in China’s Construction Contract, analysis ofappropriate methods and procedures, use the institution of change of circumstancesrationally, try to make a balance of the interests between the employer and the contractor,and achieve the fair and justice of the Civil Law.Except the introduction and conclusion, this paper consist of five chapters.The first chapter briefly introduced the principle of change of circumstances andConstruction Contract. Discusses the concept and change history of the principle ofchange of circumstances, focuses on the development in China; explores the concept,nature and characteristics of the Construction Contract, and summarized the possibledetermine way of contract price, try to make a good basis of the writing later.The second chapter focus on the status of application of the change of circumstancein China’s Construction Contract. The chapter covered a lot of typical cases, and pointedout that the attitude of the theory and judicial practice of application of the change ofCircumstances in the Construction Contract.The third chapter focuses on the necessity and feasibility of the application of theChange of Circumstance. Explained the necessity of application of change ofcircumstances from the nature, characteristics and dispute resolution needs of theConstruction Contract; in the meantime,differentiated and analysised the concept ofchange of circumstances with the force majeure and commercial risk, and also discussedthe possibility of application of change of circumstances under different contract pricingprinciples, in order to demonstrate the feasibility of application of change of circumstances in the construction Contract.The fourth chapter discussed the application of change of circumstances inConstruction Contract in details. Addressed the conditions of application, the type ofchange of circumstances, and the legal effect of application of change of circumstance.The fifth Chapter, discussed and analysised a lot of difficulties in the application ofchange of circumstance in the Construction Contract. Including wether to give up theapplication of change of circumstances in advance, how to solve the definition problemsof change of circumstances, and how to fairly distribution the price difference due to thechange of circumstances.