Research On Legal Issues Of Affiliation In Construction Contracts

Construction Contract has something in common with the Contract for Work in completing deliverable,but they still have their own characteristics.Subject matter of Construction Contract is generally immovable and longstanding with large economic value.Construction project itself includes design,execution and exploration,of which execution is the most important part.With great complexity in law,execution is also the most profitable part.Affiliation relation emerges under the temptation of this high profit.Affiliation is an act to borrow certification in essential.The affiliation party get the certification from the affiliated one to carry out construction activities at the cost of paying several "management fee".The issues that may occur during the construction are settled in the way of agreement.Although affiliation is in some degree conductive to the use of social resources,it does more harm than good in general.The legal risk of affiliation does not only for both parties in relation to affiliation,but for the developer.The quality issues caused in the process of construction may infringe the owner equity in the future.Because of the problems arising from the affiliation,China has issued relating laws and regulations and judicial interpretations.However,there are some differences in the judging standards.Since affiliation itself is complex and has something in common with internal contract,subcontract and associates,there is no clear definition of affiliation up to now.It's of more practical significance to define affiliation through four aspects including responsibility-taking,human relation,financial management and participation of contractor in project.Our law has clear stipulation about the effectiveness of construction project in relation to affiliation,which is null and void.However,scholars have different views on the legal basis for the invalid judgment.Therewith,through three factors concerning the contract effectiveness,it's analyzed that the main basis for the judgment is profits of the construction project are huge and the existence of affiliation has affected the interests of the state and society.Responsibility for the cause of affiliation is analyzed in the end,including responsibility for the quality of construction project,responsibility for the labor dispute,responsibility for personal injury and responsibility for making civil contract with the third party.From the view of judgment made by court,the more suitable responsibility-undertaker is found after analyzing different views.