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The Ministry of Housing, Urban and Rural Construction and other six departments issued guidance to speed up the implementation of the project guarantee system

(Summary description)Recently,theMinistryofHousingandUrban-RuralConstruction,theNationalDevelopmentandReformCommissionandothersixdepartmentsissuedtheGuidingOpinionsonAcceleratingtheImplementationofEngineeringGuaranteeSyst

The Ministry of Housing, Urban and Rural Construction and other six departments issued guidance to speed up the implementation of the project guarantee system

(Summary description)Recently,theMinistryofHousingandUrban-RuralConstruction,theNationalDevelopmentandReformCommissionandothersixdepartmentsissuedtheGuidingOpinionsonAcceleratingtheImplementationofEngineeringGuaranteeSyst

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Recently, the Ministry of Housing and Urban-Rural Construction, the National Development and Reform Commission and other six departments issued the Guiding Opinions on Accelerating the Implementation of Engineering Guarantee System for Housing Construction and Municipal Infrastructure Projects to further optimize the business environment, strengthen supervision after the event, and protect the legitimate rights and interests of all parties involved in the project construction.
Engineering guarantee is an important measure to transfer, share, prevent and resolve engineering risks, is the main support of market credit system, and is an effective means to ensure the quality and safety of engineering. At present, there are many problems in the construction market, such as weak risk prevention ability, frequent implementation disputes, project arrears and wage arrears, which need to be solved urgently by improving the application mechanism of project guarantee.
For this reason, the guiding opinions put forward that we should accelerate the implementation of the project guarantee system, promote the structural reform of the supply side of the construction industry, stimulate the vitality of the market main body, innovate the supervision mode of the construction market, and adapt to the development needs of the construction industry "going out". We will accelerate the implementation of tender guarantee, performance guarantee, project quality guarantee and wage payment guarantee for peasant workers. By 2020, the replacement rate of various types of margin guarantees has increased significantly; the ability of risk identification and risk control of project guarantors has increased significantly; the binding force of bank credit lines, the ability of construction units and construction enterprises to perform contracts have been improved in an all-round way.
The guiding opinions require that the project guarantee system be classified and implemented. Firstly, project guarantee should be used instead of margin. We will speed up the implementation of the bank guarantee system and the implementation of the project guarantee company guarantee and project guarantee insurance in areas where conditions permit. Strictly implement the work requirements of the State Council to clean up and standardize the margin in the field of Engineering construction. Construction enterprises can pay the tender margin, performance margin, project quality margin and peasant workers'wage margin by letter of guarantee. It is strictly forbidden for any unit or department to divert cash deposit for other purposes, and the deposit shall be refunded in time when it expires. Second, we should vigorously promote tender guarantee. Tenderers are encouraged to include the withdrawal of tender documents within the validity period of tenders, non-signing of contracts within the prescribed time limit after winning tenders, or failing to submit performance guarantees within the prescribed time limit for claims. If the tenderer fails to return the bid deposit and the interest on the bank deposit or the bid guarantee at the same time as required, it shall be recorded as a bad act in the credit record. Third, efforts should be made to implement performance guarantees. Where the tender documents require the winning bidder to submit performance guarantees, the winning bidder shall submit them in accordance with the requirements of the tender documents. Where the tenderer requests the winning bidder to provide performance guarantee, it shall also provide the winning bidder with guarantee for payment of project funds. Construction units and construction enterprises should strengthen the construction of engineering risk prevention and control capacity. The guarantor of project guarantee shall continuously improve the professional ability of insurance, enhance the ability of risk identification, conscientiously carry out the management of the guarantee in and after the guarantee, make a good early warning plan in time, and perform or assume the liability for loss compensation in accordance with the stipulation of the guarantee letter and the time after the breach of contract. Fourth, we should strengthen the application of bank guarantee for engineering quality assurance. If the bank guarantee is used instead of the project quality guarantee, the amount of the bank guarantee shall not exceed 3% of the total settlement of the project price. If the performance bond has been paid before the completion of the project, the construction unit shall not reserve the project quality bond at the same time. If the construction unit fails to return the margin at maturity, it shall be recorded as a bad act in the credit record. Fifth, we should promote the application of wage payment guarantee for migrant workers. Peasant workers'wage payment guarantees are all independent guarantees with the nature of pay-as-you-see, and are managed differently. Joint punishment for dishonesty shall be imposed on construction enterprises that are included in the "blacklist" of wages owed to migrant workers. The guarantor of project guarantee should constantly improve his professional ability and control the risk of wage payment of migrant workers in advance. Local housing and urban and rural construction authorities, in conjunction with human resources and social security departments, should speed up the application of the real-name system platform for construction workers, strengthen the protection of the legitimate rights and interests of migrant workers, and promote the industrialization process of construction workers.
In order to promote the healthy development of engineering guarantee market, the guidance also puts forward clear requirements for strengthening risk control capacity building, innovating supervision and management methods, improving risk prevention and control mechanism, strengthening construction market supervision, increasing information disclosure, and promoting credit system construction.
6. Departments require that the relevant departments in different areas should clearly divide their work according to their responsibilities, clarify their work objectives, improve their working mechanism, improve supporting policies and implement their work responsibilities. Enhance the dynamic supervision of the project guarantor, constantly improve the professional ability of the guarantor, and prevent and resolve the project risk. At the same time, through various forms of actively do a good job in propaganda of project guarantee, and effectively play the role of project guarantee in preventing and defusing project risks. (Source: Ministry of Housing Website)

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