Research On Principles For Settling Disputes Of Quantities Of Unit Price Contract

Disputes of settlement reduce Construction project the operating efficiency of construction market. The new legal and regulatory environment of construction market is committed to improving the contract sum settlement regulations, strengthening the process management of construction projects, implementing process settlement. However, the owners, contractors, cost engineering consulting corporations cannot be compromised as far as the settlement methods, process settlement is still an armchair strategist. Which is primary affected by Quota valuation system, the currently settlement has fundamentally rely on construction drawings recalculation plus changes in accounts, construction projects participants lack of awareness of the remeasurement nature of Unit Price Contract, it is difficult to reach consensus on the formation and confirmation of effective settlement amount. Many of experience guidance for solving construction project settlement disputes, but theoretical guidance for settling final account quantities disputes are rarely seen, which are specially used to unit rate contact and matched to pricing mode of bill of quantities.The research logic is subjected to practical problem comes from the construction practice, resolutions based upon theoretical analysis and the backwards verification by construction practice. The specific research process is as follows:Firstly, the re-measurement nature of the Unit Price Contract was analyzed, Contract Status theory, incomplete contract theory and the GHM model were introduced, in order to explore the implementation mechanism of process settlement of re-measurement, on the basis of literature review and summarization, it is the re-measurement fulfilled the dynamic compensation of Contract Status change of Unit Price Contract, meet the dynamic compensation needs of Contract Status change, and achieved the dynamic balance between Contract Status and the contract price.Secondly, in perspective of law and based on legal disputes’ settling principles—legal facts are consistent with the objective facts, in comparative analysis of Code of bills of quantities and valuation for construction works(GB50500-2013), Contract for construction(2013 Edition), Standard construction tender documents(2007 Edition), FIDIC Conditions of contract for construction(1999 Edition), Interim measures for the construction price settlement(2004 Edition), Code of bills of quantities and valuation for construction works(GB50500-2008) and Contract for construction(2003 Edition), we concluded the procedures and evidence requirements of determining final account valid quantities. Based on this, we build up the GHM model of Progress Settlement with the core of re-measurement for Unit Price Contract.Finally, the paper explained the causes of final account quantities’ disputes for Unit Price Contract in situation of the absence of Contract Status compensation approaches. On the basis of the disputes’ settling consistency principles study, this paper proposed the principle “paid according to the amount”, which, matches disputes’ settling of final account quantities of Unit Price Contract under BOQ valuation model, besides verified with construction practice cases.Above all, this paper introduces the concepts and theories of economics and law to study the nature of Unit Price Contract re-measurement, present situation of progress settlement and disputes’ settling principles of final account quantities of Unit Price Contract, concluding that the mechanism design of Progress Settlement with the core of re-measurement, and disputes’ settling principles of final account quantities rooted in the nature of Unit Price Contract remeasurement. Moreover, this paper also verified the feasibility of research results with construction practice cases. In this paper, the research achievements provide a theoretical guidance for settling the disputes of quantities of unit price contract.