Guidelines of the Ministry of Housing and Urban-Rural Development and other departments on Accelerating the implementation of the project guarantee system for housing construction and municipal infrastructure projects

Department of Housing and Urban-Rural Development of the provinces and autonomous regions, Development and Reform Commission, Department of Finance, Office of Human Resources and Social Security, Housing and Urban-Rural Development (Management) Committee of the Municipality directly under the Central Government, Development and Reform Commission, Finance Bureau, Human Resources and Social Security Bureau, and plans for the development and reform of separate cities Commission, Xinjiang Production and Construction Corps Housing and Urban-Rural Development Bureau, Development and Reform Commission, Finance Bureau, Human Resources and Social Security Bureau, People's Bank of China Shanghai Headquarters, branches, business management department, provincial capital (city) sub-branch, deputy provincial city Central branch, each silver insurance bureau:

Engineering guarantee is an important measure to transfer, share, prevent and resolve engineering risks. It is the main support of the market credit system and an effective means to ensure the quality and safety of the project. At present, there are problems in the construction market that are not strong in engineering risk prevention, frequent performance disputes, project arrears, and unpaid wages. It is urgent to solve the problem by improving the engineering guarantee application mechanism. In order to implement the "Notice of the General Office of the State Council on Clearing the Deposits in the Field of Standard Construction" (Guo Ban Fa [2016] No. 49) and the "Opinions of the General Office of the State Council on Promoting the Sustainable and Healthy Development of the Construction Industry" (Guo Ban Fa [2017]19 No.), “Implementation Opinions of the General Office of the State Council on the Comprehensive Reform of the Approval System for Engineering Construction Projects” (Guo Ban Fa [2019] No. 11), further optimize the business environment, strengthen post-event supervision, and ensure the legality of all parties involved in the project construction. Rights and Interests, the following opinions are proposed on accelerating the implementation of the project guarantee system for housing construction and municipal infrastructure projects.

First, the overall requirements

Guided by Xi Jinping's new era of socialism with Chinese characteristics, he will thoroughly implement the spirit of the Party's 19th and 19th Central and 3rd Plenary Sessions, and implement the Party Central Committee and the State Council to prevent and respond to various risks, optimize the business environment, and reduce the burden on enterprises. The work deployment, through the accelerated implementation of the project guarantee system, promoted the structural reform of the supply side of the construction industry, stimulated the vitality of the market main body, innovated the construction market supervision mode, and adapted to the development needs of the construction industry “going out”.

Second, the work objectives

Accelerate the implementation of bid guarantees, performance guarantees, project quality assurance guarantees and wage guarantees for migrant workers. Support banking financial institutions, engineering guarantee companies, and insurance institutions as project guarantee guarantors to carry out engineering guarantee business. By 2020, the replacement rate of various types of margin guarantees will be significantly improved; the risk identification and risk control capabilities of the project guarantee guarantors will be significantly enhanced; the bank credit limit will be strengthened, and the performance of the construction units and construction enterprises will be improved.

Third, the classification implementation of the project guarantee system

(1) Implementing a project guarantee to replace the deposit. Accelerate the implementation of the bank guarantee system and implement the project guarantee company guarantee and engineering guarantee insurance in qualified areas. Strictly implement the work requirements of the State Council to clean up the standard deposits in the field of engineering construction. For the bid bond, performance bond, project quality guarantee, and wage guarantee for migrant workers, the construction industry enterprises can pay the letter of guarantee. It is strictly forbidden for any unit or department to use the cash deposit for other purposes. The deposit shall be refunded in time.

(2) Vigorously implement bidding guarantees. If the bidder cancels the bidding documents within the validity period of the bid, does not sign the contract within the prescribed time limit, or fails to submit the performance guarantee within the prescribed time limit, it is encouraged to include the claim within the guarantee scope of the bid bond. If the tenderer fails to return the bid bond and the bank deposit interest or bid bond in accordance with the regulations, it shall be credited as a bad act.

(3) Focus on implementing performance guarantees. Where the bidding documents require the winning bidder to submit a performance guarantee, the winning bidder shall submit it in accordance with the requirements of the bidding documents. Where the tenderer requests the successful bidder to provide performance guarantee, it shall simultaneously provide the winning bid to the winning bidder. Construction units and construction enterprises should strengthen the construction of engineering risk prevention and control capabilities. The project guarantee guarantor shall continuously improve the professional underwriting capability, enhance the risk identification capability, conscientiously carry out the insurance and post-warranty management, and make timely early warning plans, and fulfill the responsibility for the loss or payment in accordance with the letter of guarantee and the times after the breach of contract.

(4) Strengthening the project quality assurance bank guarantee application. If the bank guarantee is used to replace the project quality deposit, the bank guarantee amount shall not exceed 3% of the total settlement amount of the project price. If the performance bond has been paid before the completion of the project, the construction unit may not reserve the project quality deposit at the same time. If the construction unit fails to refund the deposit at maturity, it shall be credited as a bad act.

(5) Promoting the application of wage payment guarantee for migrant workers. The wage guarantees for migrant workers are all based on independent guarantees with a pay-as-you-go nature and differentiated management. For construction enterprises that are included in the “blacklist” of wages owed to migrant workers, joint disciplinary action against dishonesty is implemented. The project guarantee guarantor should continuously improve the professional ability and pre-control the wage payment risk of migrant workers in advance. The competent departments of housing and urban and rural construction should accelerate the application of the real-name platform for construction workers with the human resources and social security departments, strengthen the protection of the legitimate rights and interests of migrant workers, and promote the industrialization of construction workers.

Fourth, promote the healthy development of the engineering guarantee market

(6) Strengthening the capacity building of risk control. Support the project guarantee guarantor to carry out in-depth cooperation with the whole process engineering consulting and engineering supervision unit, innovate the project supervision and resolve the engineering risk model. The staff of the project guarantee guarantor shall have third-party risk control capabilities and professional technical capabilities in the engineering field.

(7) Innovative supervision and management methods. Revise the model text of the guarantee, modify and improve the project bidding documents and contract model texts, promote the application of engineering guarantees; actively develop electronic guarantee letters, encourage the use of engineering re-guarantee system to enhance the credit management of guarantee institutions, and promote the supervision of the "Internet +" project guarantee market.

(8) Improve the risk prevention and control mechanism. The promotion project guarantee guarantor continuously improves the internal control management system, actively carries out risk management services, and effectively prevents and controls risks. The guarantor should constantly standardize the project guarantee behavior, strengthen the risk prevention and control mechanism construction, develop the post-warranty risk tracking and risk warning service capabilities, and enhance the ability to handle contract disputes and determine claims liability. Comprehensively improve the risk assessment and risk prevention and control capabilities of the project guarantee guarantor, and effectively play the role of project guarantee. Encourage engineering guarantee guarantors to comply with relevant regulatory requirements and actively carry out guarantee business for private, small and medium-sized construction enterprises.

(9) Strengthening supervision of the construction market. When the construction unit handles the construction permit, it shall have the funding arrangement to meet the construction needs. The funds required for government investment projects shall be ensured in place in accordance with relevant state regulations, and shall not be funded by the construction unit. For the construction unit that fails to pay the responsibility for the payment of the project, the bad behavior is recorded in the credit record.

(10) Increase the intensity of information disclosure. Increase the information disclosure of the construction market, fully disclose the qualifications of enterprises, personnel qualifications, project performance, credit information and engineering guarantee related information, and facilitate the inquiry of personnel and institutions related to the guarantee.

(11) Promote the construction of the credit system. Guide all market participants to establish credit awareness, strengthen internal credit management, continuously improve their ability to perform, and accumulate corporate credit. Actively explore the construction market credit evaluation results directly applied to the project guarantee, provide convenience for enterprises with good credit status, reduce guarantee costs, simplify the guarantee procedures; and include serious blackmail in the construction market market for serious untrustworthy enterprises such as malicious claims. Joint disciplinary action, to build a market environment of "one place is untrustworthy and subject to change".

V. Strengthening overall planning and promotion

(12) Strengthen organizational leadership. Relevant departments of all localities should attach great importance to project guarantee work, clearly define the division of labor according to their responsibilities, clarify work objectives, improve working mechanisms, improve supporting policies, and implement work responsibilities. Increase the dynamic supervision of the project guarantee guarantor, continuously improve the professional ability of the guarantor, and prevent the risk of engineering.

(13) Do a good job in propaganda and guidance. Relevant departments of various localities should actively carry out propaganda work of project guarantees through various forms, strengthen public opinion guidance, promote the understanding and application of construction guarantees by the main body of construction market, and give full play to the role of project guarantees in preventing and resolving project risks.

Ministry of Housing and Urban-Rural Development of the People's Republic of China

National Development and Reform Commission, People's Republic of China

Ministry of Finance

Ministry of Human Resources and Social Security of the People's Republic of China

People's Bank of China

China Bank Insurance Supervision and Administration Commission

June 20, 2019

(This piece is open to the public)