Ministry of Housing and Urban-Rural Development Issues Measures for the Identification and Investigation of Illegal Acts in Construction Projects

The Ministry of Housing and Urban-Rural Development recently issued the “Measures for the Identification and Investigation of Illegal Acts in the Contracting and Subcontracting of Construction Projects” (hereinafter referred to as the “Measures”), proposing a strict ban on illegal contracting, contract transfer, illegal subcontracting, and affiliation to ensure project quality and construction safety.

The “Measures” point out that construction units and contracting units should strictly sign contracts in accordance with the law, clarifying the rights, obligations, and responsibilities of both parties, strictly prohibiting illegal contracting, contract transfer, illegal subcontracting, and affiliation to ensure project quality and construction safety. Any unit or individual discovering illegal acts such as illegal contracting, contract transfer, illegal subcontracting, or affiliation may report them to the housing and urban-rural development competent department of the people's government at or above the county level where the project is located.

The housing and urban-rural development competent department of the people's government at or above the county level shall investigate illegal acts such as illegal contracting, contract transfer, illegal subcontracting, and affiliation discovered within their administrative areas in accordance with the law, identify them pursuant to these Measures, and impose administrative penalties in accordance with the law.

It is reported that the Measures will come into effect on January 1, 2019. The “Measures for the Identification and Investigation of Illegal Acts such as Contract Transfer and Illegal Subcontracting of Construction Projects (Trial)” implemented on October 1, 2014, shall be simultaneously repealed.