Construction Contractor In The Contractor To The Contractor To File A Practical Study Of The Project Claims

The construction industry in China is witnessing its second peak.For general contractors,it is an era in which opportunities and competition coexist.The present study is intended to maintain the legitimate rights and interests of general contractors on the condition that they ensure the project quality is qualified or excellent(as evidenced by honors and awards like the Luban Prize for Construction Project),rather than encourage the cut-throat competition characterized by "wining the bidding at fire sale prices and earning money by making frequent claims for compensation".Currently,the general contractor has a somewhat private and unequal relationship with its employer.In most cases,the general contractor will accept all requirements of the employer without question,in order to get the project from the employer.Moreover,the general contractor does not pay much attention to the procedure for engineering claims and the collection of relevant evidences.When it is difficult to claim for compensation,many knotty problems will be incurred,such as:Can the general contractor transfer the risk of engineering claim by using the legal principle of "complying with the agreement if there is any agreement signed between all parties" in Contract Law?Is the priority of compensation applicable for the case?Can the general contractor claim for interests during engineering claim?Therefore,by referring to practical experience and relevant cases,the author investigated the issues arising when the general contractor makes an engineering claim with the employer from a practical perspective.The paper consists of four parts:The first part discusses some basic theories regarding the engineering claim that the general contractor makes with the employer.The engineering claim that the general contractor makes with the employer is firstly defined,followed by the analysis on basic principles of engineering claim.The findings provide a theoretical support for solving practical problems related to engineering claim in the paragraphs below.In addition,the relationship between engineering claim and engineering certification is also demonstrated in detail.The importance of claim evidences like engineering certification in engineering claim is pointed out.The second part starts with the five practical problems in the engineering claim that the general contractor makes with the employer.In terms of the focus of dispute in practical cases,the content and reasons of each problem are analyzed.The author also explains the significance of the present study,and why it is urgently necessary for the general contractor to strengthen its management of engineering claim.In the third part the author discusses a common dilemma in practice,namely,in view of possible cooperation with the employer in future,many general contractors seldom resort to legal action or arbitration when they fail to get the indemnity from the employer as scheduled.Thus,is there any other way to solve the dilemma?In accordance with practical experience,relevant court decision or arbitration award,and the theories in civil law and contract law,the author conducts an in-depth study on problems related to engineering claim.Specifically,the author demonstrates several solutions one by one,such as:1)the risk of engineering claim can be transferred to sub-contractors according to the legal principle of "complying with the agreement if there is any agreement signed between all parties";2)the assignment of debt can be applied to engineering claim;3)the priority of compensation can be applied to engineering claim;4)the general contractor can claim for interests during engineering claim.The fourth part suggests that the general contractor in China should make engineering claims by virtue of legal thinking.Based on the analysis above,the author indicates that all staff working for the general contractor,including managers and ordinary employees(especially legal specialists),should have the awareness of engineering claim and participate in the entire claim process.It is expected that the findings in the present study can develop and improve the solutions to the problems arising when the general contractor makes an engineering claim with the employer.