Opinions of the General Office of the Nanyang Municipal People’s Government on Accelerating the High-Quality Development of the Construction Industry
People’s Governments of all counties (cities, districts), Administrative Committees of the Urban-Rural Integration Demonstration Zone, High-Tech Zone, Guan Zhuang Industrial Zone, Yahe Industrial Zone, and Wolong Comprehensive Bonded Zone, and Relevant Departments of the Municipal People’s Government:
To further optimize the development environment for the construction industry, enhance the overall competitiveness of our city’s construction sector, promote high-quality and leapfrog development in the industry, and support the construction of Henan Province’s secondary central city, in accordance with the “Notice of the People’s Government of Henan Province on Issuing the Henan Province ‘14th Five-Year Plan’ for the Development of the Business Environment and Social Credit System” (Yu Zheng [2021] No. 54),the “Notice of the Office of the Inter-Ministerial Joint Conference on Supporting the Development of the Construction Industry of Henan Province on Issuing Ten Opinions on Supporting the Transformation and Development of the Construction Industry” (Yu Jian Lian Ban [2020] No. 1), and other relevant documents; drawing on the experiences of advanced cities both within and outside the province; and in light of our city’s actual conditions, the following opinions are put forward after deliberation and approval at the 82nd Executive Meeting of the Municipal Government. Please ensure their thorough implementation:
I. Guiding Principles
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the important speeches and instructions made by General Secretary Xi Jinping during his inspection of Nanyang, as well as the spirit of the 20th National Congress of the Communist Party of China. We will fully implement the spirit of the economic work conferences of the Provincial and Municipal Party Committees, earnestly carry out the “Year of Building Concepts, Capabilities, and Work Style” campaign, anchor our efforts on the “Two Assurances,” align with the “Ten Major Strategies,” and focus on the “1-2-3-60” work layout. We will create an optimal development environment, support local construction enterprises in becoming stronger and more competitive, and enhance their core competitiveness;We will attract high-quality construction enterprises to develop in Nanyang, leveraging each other’s strengths to achieve mutual improvement and integration; enhance quality, efficiency, and service effectiveness; foster a market environment characterized by integrity and compliance with the law; promote high-quality development in the construction industry; and make greater contributions to the city’s economic and social development.
II. Objectives and Tasks
By the end of the 14th Five-Year Plan period, we aim to maintain a sustained growth rate of over 15% in construction output value, with the city’s total construction output value reaching over 300 billion yuan; cultivate 5 enterprises with comprehensive construction qualifications and increase the number of enterprises with Class A general contracting qualifications to over 50; vigorously promote engineering general contracting and full-process consulting, and foster over 20 leading enterprises with comprehensive general contracting management capabilities and full-process consulting capabilities.
III. Key Measures
(1) Encouraging Construction Enterprises to Expand and Strengthen Their Competitiveness
We will encourage cross-industry and cross-disciplinary mergers and reorganizations among construction enterprises. We will support state-owned enterprises, investment and financing companies, and construction firms in establishing mixed-ownership construction enterprises to foster a group of leading construction enterprises in Nanyang City that possess strong competitiveness and influence in terms of capital and equipment.Construction general contracting enterprises in our city that upgrade to comprehensive qualifications will receive a 2 million yuan upgrade incentive; construction general contracting enterprises that upgrade to Class A or survey and design enterprises that upgrade to comprehensive Class A will receive a 1 million yuan upgrade incentive; survey and design enterprises that upgrade to industry Class A or engineering supervision enterprises that upgrade to comprehensive qualifications will receive a 500,000 yuan upgrade incentive.We encourage non-local survey, design, construction, and supervision enterprises to form consortia with local construction enterprises to participate in bidding and jointly compete in the high-end construction market. Eligible consortia may enjoy policy support and financial reductions regarding our city’s credit evaluation and application of results, migrant worker wage guarantees, and bid bonds;Establish the state-owned Nanyang Urban and Rural Construction Engineering Group Co., Ltd. Encourage the recruitment of central state-owned enterprises and other construction firms to collaborate with our city’s state-owned companies in establishing project companies, ensuring that construction output statistics and tax revenues remain within the local area. The aforementioned incentive funds shall be paid by the counties (cities, districts) benefiting from the tax revenues; where tax revenues are shared between the city and districts, the city and districts shall each bear 50%.
Lead Agency: Municipal Bureau of Housing and Urban-Rural Development
Cooperating Agencies: Municipal Finance Bureau, Development and Reform Commission, Transportation Bureau, Water Resources Bureau, Human Resources and Social Security Bureau, Statistics Bureau, Taxation Bureau; governments (administrative committees) of all counties (cities, districts); and municipal state-owned functional companies
(2) Intensify Efforts to Develop the Construction Industry Headquarters Economy
Further optimize the qualification approval process. In accordance with the requirements of the “Notice of the Nanyang City Headquarters Economy Leading Group on Issuing the Implementation Opinions on the Headquarters Economy in the Construction, Logistics, and Cross-border E-commerce Sectors in Nanyang City” (Wan Headquarters [2021] No. 1), eligible Class A or higher general contracting enterprises from outside the municipal area, as well as local Class A or higher general contracting construction enterprises, may be granted Class B general contracting qualifications upon application, within the scope of our city’s authority.Construction general contracting enterprises with comprehensive qualifications relocating from outside the city will receive a one-time settlement incentive of 3 million yuan;Construction general contracting enterprises with Class A qualifications from outside the municipal area that relocate to our city shall be granted a one-time settlement incentive of 1 million yuan; design units with comprehensive qualifications or Class A industry-specific qualifications that relocate their headquarters to Nanyang City shall be granted one-time settlement incentives of 1 million yuan and 500,000 yuan, respectively, and shall receive support for transitional office space, talent recruitment and settlement, and housing security.
Lead Agency: Municipal Bureau of Housing and Urban-Rural Development
Cooperating Agencies: Municipal Finance Bureau, Transportation Bureau, Water Resources Bureau, Human Resources and Social Security Bureau, and governments (administrative committees) of all counties (cities, districts)
(3) Encouraging Construction Enterprises to Increase Production and Generate Revenue
Enterprises with an annual output value of 3 billion yuan or more, or annual tax payments of 100 million yuan or more, will receive a total reward of 2 million yuan; those with an annual output value of 2 billion yuan or more, or annual tax payments of 60 million yuan or more, will receive a total reward of 1 million yuan; and those with an annual output value of 1 billion yuan or more, or annual tax payments of 30 million yuan or more, will receive a total reward of 500,000 yuan.
Lead Agencies: Municipal Finance Bureau, Tax Bureau
Cooperating Agencies: Municipal Housing and Urban-Rural Development Bureau, Transportation Bureau, Water Resources Bureau; governments (administrative committees) of all counties (cities, districts)
(4) Support for Enterprises in Creating High-Quality Projects
For local construction enterprises that serve as the lead designers for national industry top awards such as the “Zhan Tianyou Award,” “Luban Award,” or “Municipal Golden Cup Award,” the government of their registered location shall grant a one-time reward of 300,000 yuan; for those serving as the lead designers for provincial-level awards such as the “Zhongzhou Cup,” “Municipal Golden Cup Award,” or “National Standardized Construction Site,” the government of their registered location shall grant a one-time reward of 100,000 yuan;Winning national, provincial, or municipal awards in the relevant industry shall be considered a key indicator in corporate credit evaluations.
Lead Agencies: Municipal Finance Bureau, Municipal Housing and Urban-Rural Development Bureau
Cooperating Agencies: Municipal Transportation Bureau, Water Resources Bureau, Development and Reform Commission, and governments (administrative committees) of all counties (cities, districts)
(5) Strengthening the Implementation of Policies to Attract Investment
Newly established headquarter enterprises that have been certified and do not own office space in Nanyang City shall, starting from the second year following the date of certification, receive an annual subsidy of 1% of the purchase price when purchasing office space for their own use (excluding ancillary facilities and supporting facilities) for the first time. This subsidy shall be provided for a maximum of 10 years, with an annual cap of 500,000 yuan;Newly established headquarters enterprises that have been certified and do not own office space in Nanyang City, but lease office space (excluding ancillary facilities and supporting premises), shall receive an annual subsidy equal to 50% of the lease contract amount for the leased office space. This subsidy shall be provided for a maximum of 5 years, with a total subsidy amount not exceeding 1.5 million yuan.
Lead Agencies: Municipal Bureau of Natural Resources and Planning, Municipal Finance Bureau
Cooperating Agencies: Municipal Bureau of Housing and Urban-Rural Development, Bureau of Transportation, Bureau of Water Resources, and governments (administrative committees) of all counties (cities, districts)
(6) Implementing New Engineering Organization and Management Models
Implement reforms in project organization and implementation methods, enhance enterprises’ comprehensive management capabilities and standards for engineering general contracting, and cultivate leading engineering general contracting enterprises.Support enterprises engaged in consulting, surveying, design, supervision, bidding agency, and cost consulting to transition into full-process engineering consulting service providers, and cultivate a group of full-process engineering consulting enterprises with advanced capabilities. Government-invested projects or state-owned enterprise-invested projects with clearly defined construction scope and mature technical solutions shall adopt the engineering general contracting model and full-process engineering consulting; private-sector investment projects are encouraged to adopt the engineering general contracting model and full-process engineering consulting. Prefabricated buildings shall, in principle, adopt the engineering general contracting model.
Lead Agency: Municipal Bureau of Housing and Urban-Rural Development
Cooperating Agencies: Municipal Finance Bureau, Development and Reform Commission, Transportation Bureau, Water Resources Bureau, Human Resources and Social Security Bureau, and governments (administrative committees) of all counties (cities, districts)
(7) Supporting Enterprise Technological Innovation
Increase support for research and development investment in the construction industry; organize construction enterprises, universities, and research institutes to carry out R&D on construction technology projects to enhance independent innovation capabilities; guide enterprises and social capital to increase investment in science and technology, actively apply for special science and technology projects, strengthen the integration of industry, academia, research, and application, and promote technological progress in the construction industry.Enterprises whose invention patents win the “National Patent Award” will receive a one-time innovation reward of 300,000 yuan; those winning the National Science and Technology Progress Award will receive a one-time innovation reward of 300,000 yuan or more; those winning the Provincial Science and Technology Progress Award will receive a one-time innovation reward of 100,000 yuan or more; and those obtaining a national invention patent will receive a one-time innovation reward of 20,000 yuan.
A special fund for the development of prefabricated construction will be established to support technological innovation, standard improvement, pilot demonstrations, and publicity and training for industrial bases in the prefabricated construction sector. By the end of 2023, for commercial and residential buildings with a floor area of 20,000 square meters or more and public buildings with a floor area of 10,000 square meters or more, where the prefabrication rate reaches 30% or higher, the municipal government will provide a subsidy of 30 yuan per square meter, with a maximum subsidy of 3 million yuan per project;Projects with a prefabrication rate of 50% or higher will also be eligible for provincial financial subsidies. Starting in 2023, projects with a prefabrication rate of 50% or higher will receive a subsidy of up to 20 yuan per square meter, with a maximum subsidy of 2 million yuan per project, and will also be eligible for relevant provincial financial rewards.
Lead Agencies: Municipal Finance Bureau, Municipal Science and Technology Bureau
Cooperating Agencies: Municipal Housing and Urban-Rural Development Bureau; governments (administrative committees) of all counties (cities, districts)
(8) Implementing the “Going Global” Development Strategy
Support enterprises in expanding into markets outside the municipal area. Seizing the opportunity presented by the development of Henan Province’s sub-central city, encourage enterprises in our city with an annual output value of 20 million yuan or more to “go global.” Governments at all levels, relevant departments, and industry associations shall provide “green channel” services to facilitate construction enterprises in securing projects outside the municipal area. Outward-oriented enterprises shall receive preferential treatment in evaluations for excellence and awards. If projects undertaken outside the municipal area win provincial-level or higher awards, they shall be eligible for local reward policies in accordance with relevant regulations.Construction enterprises in our city that achieve an annual output value exceeding 1 billion yuan outside the municipal area, with construction-related taxes remitted to Nanyang, will be awarded 1 million yuan; those achieving an annual output value exceeding 500 million yuan outside the municipal area, with construction-related taxes remitted to Nanyang, will be awarded 500,000 yuan.
Lead Agencies: Municipal Bureau of Housing and Urban-Rural Development, Municipal Finance Bureau
Cooperating Agencies: Municipal Taxation Bureau, Transportation Bureau, Water Resources Bureau, and governments (administrative committees) of all counties (cities, districts)
(9) Improve the new market supervision mechanism and strengthen the application of credit evaluation results
For all types of housing construction and municipal infrastructure projects implementing the credit-related scoring criteria for comprehensive bid evaluation under the "Henan Province Construction Project Bill of Quantities Bidding and Bid Evaluation Measures," the credit evaluation results of Nanyang construction enterprises within their validity period shall be adopted. The corresponding scores are: AAA = 4 points; AA = 3 points; A = 2 points; B = 0 points.
Construction enterprises newly entering our city from outside the municipal area shall be initially classified as Grade A. When participating in bidding for various housing construction and municipal infrastructure projects in a consortium with local construction enterprises, the credit evaluation score shall be determined based on the highest credit evaluation result among the consortium members.
Construction enterprises with an AAA credit rating shall be given priority when participating in government procurement and bidding for state-invested projects; project owners of non-state-invested projects are encouraged to give priority to AAA-rated construction enterprises when awarding contracts; for construction enterprises rated AA or higher, reductions or exemptions shall be granted regarding bid bonds, migrant worker wages, project payment, performance guarantees, quality guarantees, and other related costs.
Improve the management measures for the construction market’s “red and black lists” of integrity and credit. In accordance with the principle of “incentivizing trustworthiness and punishing dishonesty,” use the published results of the “red and black lists” as a key basis for market access, qualification management, routine supervision and inspection, and the selection of exemplary entities, thereby fully leveraging the role of the “red and black list” publication system in industry management.
Lead Agency: Municipal Housing and Urban-Rural Development Bureau
Cooperating Agencies: Municipal Development and Reform Commission, Public Resources Trading Center, Transportation Bureau, Water Resources Bureau, Urban Management Bureau, and governments (administrative committees) of all counties (cities, districts)
(10) Accelerate the Cultivation and Expansion of the Construction Industry Talent Pool in the New Era
Support construction enterprises in Nanyang City in building high-quality talent teams. Provide corresponding living allowances for the cultivation and recruitment of recognized high-level talent; where such expenses comply with relevant national regulations, they may be deducted before calculating corporate income tax. Support construction enterprises in fulfilling their primary responsibility for training construction workers, and support construction enterprises above a certain scale in establishing corporate training centers; provide training and evaluation subsidies to eligible enterprises in accordance with regulations.We will establish clear career advancement pathways for skilled and professional technical personnel, strengthen the cultivation of innovative, applied, and skilled talent, and maximize the release and stimulation of the innovative, creative, and entrepreneurial vitality of both skilled and professional technical personnel.We will continue to improve the working and living conditions of construction workers. Construction workers who are employed or starting businesses in Wanxian and meet the city’s housing security criteria will be included in the housing security coverage. We will explore housing provident fund contribution methods tailored to the characteristics of the construction industry, promote the contribution of housing provident funds by construction workers, strengthen the implementation of relevant policies, and focus on resolving issues such as access to urban daycare and schooling for the children of eligible construction workers.
Lead Agencies: Municipal Bureau of Housing and Urban-Rural Development, Municipal Bureau of Human Resources and Social Security
Cooperating Agencies: Municipal Finance Bureau, Transportation Bureau, Water Resources Bureau, Emergency Management Bureau, Housing Provident Fund Management Center, and governments (administrative committees) of all counties (cities, districts)
IV. Support Measures
(1) Strengthen Organizational Leadership.The former Nanyang City Leading Group for Cultivating and Strengthening the Construction Industry shall be renamed the Nanyang City Leading Group for Supporting High-Quality Development of the Construction Industry. The group shall be led by the Vice Mayor in charge of this sector, with members including the Deputy Secretary-General of the Municipal Government in charge of this sector, as well as the principal officials from the Municipal Commission for Discipline Inspection and Supervision, and the departments of Housing and Urban-Rural Development, Development and Reform, Statistics, Finance, Financial Services, Human Resources and Social Security, Natural Resources and Planning, Taxation, Market Regulation, Transportation, Water Resources, Urban Management, Science and Technology, Ecology and Environment, Emergency Management, Justice, and Electric Power.An Office shall be established under the Leading Group, located within the Municipal Bureau of Housing and Urban-Rural Development, with the Director of the Municipal Bureau of Housing and Urban-Rural Development serving concurrently as the Director of the Office.
(2) Strengthen Policy Promotion. All departments at all levels must prioritize specialized publicity efforts for measures supporting high-quality development in the construction industry. They should fully utilize news media and online platforms to explain and interpret supportive policies for high-quality development in the construction industry, regularly convene enterprise symposiums, conduct assessments of policy implementation, and ensure that relevant fiscal departments promptly disburse incentive funds to guarantee that policy benefits reach enterprises effectively.
(3) Improve the evaluation mechanism. Incorporate the work on high-quality development of the construction industry into the target evaluation system. Led by the Municipal Bureau of Housing and Urban-Rural Development, in collaboration with the Municipal Development and Reform, Transportation, Water Resources, Statistics, and Taxation departments, formulate evaluation measures for high-quality development of the construction industry. Conduct monthly progress reviews, quarterly reports, and annual evaluations of the work performance of county (city, district) governments (administrative committees) and municipal state-owned functional companies.
(4) Strengthen Service Support. All departments at all levels must enhance service provision, formulate specific work measures, improve fast-track procedures, and further optimize the environment for high-quality development in the construction industry to maximize the benefits of policies. In conjunction with the “10,000 Officials Assisting 10,000 Enterprises” campaign, they shall coordinate to resolve difficulties and issues faced by enterprises to the greatest extent possible, thereby creating a favorable external environment for enterprise development. All departments must ensure policy consistency; where previously issued policies conflict with this opinion, this opinion shall prevail.
October 26, 2022
