Several Measures to Promote High-Quality Development of the City’s Construction Industry
2024-10-27 00:00

To further optimize the development environment for the construction industry, accelerate industrial restructuring and transformation and upgrading, enhance the core competitiveness of enterprises, and promote the sustained and healthy development of the city’s construction industry, these measures are formulated in accordance with the “Opinions of the Provincial Government on Promoting High-Quality Development of the Provincial Construction Industry” (Su Zheng Gui [2023] No. 14), taking into account the actual conditions of this city.

I. Accelerating Transformation and Upgrading to Improve Industrial Quality

1. Promote the expansion of construction enterprises into the infrastructure sector. Support and guide construction enterprises to enter large-scale infrastructure sectors such as ports and waterways, expressways, municipal roads, bridges and tunnels, utility tunnels, water conservancy projects, and power and energy, as well as new infrastructure sectors such as 5G base stations, new energy vehicle charging stations, data centers, artificial intelligence, and the industrial internet.Localities shall specify in their annual infrastructure construction project plans that no less than 50% of the total investment shall be allocated to specific projects and contract sections. Eligible leading construction enterprises are encouraged to participate in bidding through consortia, with each consortium member’s workload generally constituting no less than 40% of the total workload for the bid section.(Responsible Units: Municipal Development and Reform Commission, Municipal Bureau of Industry and Information Technology, Municipal Bureau of Housing and Urban-Rural Development, Municipal Bureau of Transportation, Municipal Water Resources Bureau, Taizhou Communications Administration Office, Taizhou Power Supply Company, People’s Governments of all cities (districts), and Taizhou Pharmaceutical High-Tech Zone Administrative Committee. Hereinafter, the responsible units for all tasks include the People’s Governments of all cities (districts) and the Taizhou Pharmaceutical High-Tech Zone Administrative Committee, and will not be listed separately.)

2. Promote the development of green construction. Government-invested projects shall take the lead in setting an example by strengthening the application of prefabricated construction methods and BIM technology. The construction of ultra-low (near-zero, zero) energy buildings, three-star green buildings, and renewable energy buildings shall be encouraged, with the goal of having two projects selected annually for provincial-level special funding awards for green building development in urban and rural construction. Policy support shall be provided for star-rated green buildings in areas such as green finance, high-quality project evaluations, and housing provident fund loan limits.Increase efforts to promote the application of green building materials, guide enterprises in obtaining green building material product certifications, and implement a tiered evaluation and management system. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Finance Bureau, Municipal Housing Provident Fund Center)

3. Promote the Transformation of the Design Industry. Focusing on the promotion of BIM-based positive design, we will advance the application of BIM technology throughout the entire lifecycle of construction projects. For government-invested public buildings such as office buildings, hospitals, and schools, as well as urban landmark buildings and major municipal infrastructure projects, BIM design costs will be included in the project budget upon approval by the relevant level of government. We will promote the application of BIM technology in the review of construction drawings. We will comprehensively build a design talent system, cultivate a group of design firms with market competitiveness, and strengthen the training of reserve talent for provincial-level design masters.Promote full-process, on-site design services, continue to advance the “designers in the countryside” initiative, and explore the establishment of mechanisms for designers to serve communities. By 2026, the city will cultivate no fewer than 12 Class A-qualified design institutes, train 3 provincial-level reserve design masters, and 30 municipal-level design talents. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Finance Bureau, Municipal Human Resources and Social Security Bureau)

4. Promote Full-Process Engineering Consulting. Pilot the implementation of full-process engineering consulting in government-invested and state-funded projects, and encourage project owners to contract for full-process engineering consulting services. Cultivate full-process engineering consulting firms and encourage enterprises engaged in investment consulting, engineering design, bidding agency, cost consulting, engineering supervision, and project management to expand into full-process engineering consulting services. Establish an evaluation system for full-process engineering consulting services, regularly publish evaluation results to the public, and improve the quality of enterprise services.By 2026, the city will have cultivated no fewer than 20 pilot enterprises for full-process engineering consulting. (Responsible Units: Municipal Housing and Urban-Rural Development Bureau, Municipal Development and Reform Commission, Municipal Finance Bureau, Municipal Transportation Bureau, Municipal Water Resources Bureau, Municipal Audit Bureau, Municipal State-owned Assets Supervision and Administration Commission)

II. Fostering Large and Strong Enterprises to Enhance Comprehensive Capabilities

5. Cultivate enterprises with high-level qualifications. Increase support for enterprises seeking to upgrade to special-class qualifications; by 2026, the city will cultivate 2–3 construction general contracting enterprises with special-class qualifications. Support construction general contracting enterprises with special-class qualifications and high-quality enterprises with first-class qualifications from outside the city to relocate their comprehensive headquarters to Taizhou or establish functional headquarters with independent legal person status. Develop supporting fiscal policies for regions that demonstrate significant achievements in developing the headquarters economy and expanding the construction industry.Localities may formulate supportive policies tailored to their specific circumstances, including subsidies for business establishment and operational premises, as well as land use guarantees. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Finance Bureau, Municipal Bureau of Natural Resources and Planning, Municipal Bureau of Commerce)

6. Expand into Out-of-Town Markets. Relying on the Construction Industry Development Alliance, organize promotional and exchange activities outside the province, establish a liaison mechanism for out-of-town construction services, and build a platform for construction enterprises to “go global.” Encourage and support construction enterprises to join the Ministry of Commerce’s list of overseas aid enterprises, participate in “Belt and Road” initiatives, and undertake major aid construction projects and key overseas investment projects.For enterprises undertaking overseas engineering projects, ensure efficient approval processes and support services for official overseas travel permits and visas, and expedite the approval and issuance of private overseas travel documents; provide appropriate conveniences for particularly urgent cases. Support eligible enterprises in applying for APEC Business Travel Cards. (Responsible Units: Municipal Housing and Urban-Rural Development Bureau, Municipal Development and Reform Commission, Municipal Public Security Bureau, Municipal Finance Bureau, Municipal Commerce Bureau, Municipal Foreign Affairs Office)

7. Accelerate the training of industrial workers. Reform the construction labor system by designating specialized subcontracting enterprises as the primary vehicle for managing construction workers. Guide enterprises to establish relatively stable teams of in-house technical workers, gradually achieving corporate and specialized management of the construction workforce. Promote training and skill level certification for construction workers and establish training bases for them. Optimize vocational skills training subsidy policies in accordance with the characteristics of the construction industry, ensuring subsidies are disbursed in a timely and full manner.Deepen the integration of industry and education as well as school-enterprise cooperation; support local universities in establishing construction-related disciplines and majors; strengthen integrated cooperation between secondary and higher vocational education; and vigorously cultivate a reserve of highly skilled technical talent for the construction industry.Continue to provide training for rural construction craftsmen and actively cultivate a workforce of rural construction craftsmen. Encourage construction enterprises to implement new apprenticeship training programs to increase the supply of skilled talent in emerging fields such as smart construction. Encourage localities to explore the establishment of construction service industrial parks, leverage the resource aggregation advantages of these parks, and build a Taizhou construction labor brand with national recognition. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Education Bureau, Municipal Finance Bureau, Municipal Human Resources and Social Security Bureau, Municipal Federation of Trade Unions)

8. Guide local state-owned enterprises to support the development of construction enterprises. Encourage local state-owned enterprises to collaborate with high-quality private construction enterprises and companies along the construction industry chain to expand market opportunities. Establish a quarterly reporting and annual evaluation system to guide local state-owned enterprises in actively adopting the “separation of evaluation and award” bidding method, improving internal control mechanisms, strengthening process supervision of construction projects, and fostering the growth and strengthening of construction enterprises. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Finance Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Data Bureau)

9. Promote deep integration between real estate enterprises and construction enterprises. Encourage real estate developers to pursue integrated development with high-quality construction enterprises with good credit standing. Local authorities may establish “green channels” for integrated development projects regarding construction permits, pre-sale permits, and completion acceptance filings, and formulate supportive policies such as fiscal incentives, supervision and disbursement of pre-sale funds, and project financing. (Responsible Units: Municipal Housing and Urban-Rural Development Bureau, Municipal Finance Bureau, Municipal Bureau of Natural Resources and Planning, Municipal Data Bureau)

III. Strengthen Industry Oversight and Regulate Market Order

10. Strengthen management of market order. Enhance dynamic supervision of enterprise qualifications, personnel credentials, and professional conduct in the construction market, and improve the mechanism for removing non-compliant enterprises. Intensify special rectification efforts in the construction market, continuing to crack down on illegal contracting, subcontracting, unlawful sub-contracting, fronting, and wage arrears for migrant workers, and impose legal restrictions in areas such as market access, qualifications, and bidding. Strengthen supervision and management of engineering quality testing agencies, and strictly investigate and punish acts such as issuing false testing reports.Implement electronic labor contracts for construction workers and promote the “monthly settlement” system for wage payments in the construction sector to safeguard migrant workers’ rights to lawful remuneration. Strengthen management of personnel in key positions at construction sites to ensure they are present and performing their duties, and severely crack down on fraudulent attendance records. (Responsible Units: Municipal Housing and Urban-Rural Development Bureau, Municipal Public Security Bureau, Municipal Human Resources and Social Security Bureau, Municipal Data Bureau)

11. Improve the market credit system. Fully leverage the positive guiding role of comprehensive credit evaluations and increase the application of their results. Establish a new credit-based market supervision mechanism for the construction sector; standardize and improve the comprehensive credit evaluation indicator systems for enterprises engaged in design, construction, supervision, cost estimation, and tender agency; implement credit-based tiered and categorized management; and, based on the results of comprehensive credit evaluations, implement differentiated supervision in matters such as bidding and tendering, administrative approvals, and supervision and inspection.Unified comprehensive credit evaluation results shall be used in bidding and tendering for government-invested and state-funded investment projects. (Responsible Units: Municipal Housing and Urban-Rural Development Bureau, Municipal Development and Reform Commission, Municipal Finance Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Data Bureau)

12. Deepen reforms in construction project bidding and tendering. Implement a tenderer commitment system, standardize pre-bid preparation by tenderers, and strengthen mid- and post-process supervision of construction project bidding and tendering. Establish a joint management mechanism for tenderers and bidding agencies, and impose joint penalties on tenderers and bidding agencies that violate laws and regulations.Government-invested and state-funded housing construction and municipal infrastructure projects are encouraged to adopt the “separation of evaluation and award” approach to determine the winning bidder. Tender documents shall include an award scheme, and award criteria shall encompass bid prices, comprehensive credit evaluation results, project performance, personnel allocation, and corresponding capabilities. No discriminatory treatment shall be given to business entities from different regions or with different forms of ownership.Establish a data-sharing mechanism for construction project bidding and tendering, severely crack down on illegal activities such as bid-rigging and collusion, and promote the implementation of precise and differentiated post-award supervision. (Responsible Units: Municipal Housing and Urban-Rural Development Bureau, Municipal Development and Reform Commission, Municipal State-owned Assets Supervision and Administration Commission, Municipal Data Bureau)

13. Standardize the settlement of project payments. Standardize the project owner’s implementation of systems for advance payments, wage payments, progress payments, and final settlement. Advance payments shall not be less than 10% of the total contract value; project settlement shall not be delayed, nor shall survey and design fees or project payments be withheld, on the grounds that settlement audits have not been completed. Those responsible for group incidents or quality and safety accidents caused by failure to pay project payments in a timely and full manner shall be held accountable in accordance with the law.For government-invested and state-funded investment projects, construction contracting shall adopt bill-of-quantities pricing and fully implement the system of interim settlement during construction. The proportion of progress payments shall not be less than 80% of the value of completed work; contractors shall not be required to advance funds for construction; and it is prohibited to force or implicitly force the use of audit results from audit authorities as the basis for project payment settlement.Strictly enforce the regulations on the review deadlines for final settlement set by the Ministry of Finance and the Ministry of Housing and Urban-Rural Development, as well as the settlement audit cycle regulations established by the Provincial Department of Housing and Urban-Rural Development. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Development and Reform Commission, Municipal Bureau of Industry and Information Technology, Municipal Finance Bureau, Municipal Transportation Bureau, Municipal Water Resources Bureau, Municipal Audit Bureau, Municipal State-owned Assets Supervision and Administration Commission)

IV. Consolidate Service Efforts and Foster a Favorable Environment

14. Reduce the Burden on Enterprises. Implement measures to ensure that the deposit amount for the migrant worker wage guarantee fund in the fields of housing construction and municipal infrastructure does not exceed 800,000 yuan. Construction enterprises that have not engaged in any wage arrears involving migrant workers for three consecutive years may be exempted from paying the migrant worker wage guarantee fund. If, during the period of exemption, an enterprise is found to have engaged in wage arrears involving migrant workers, it shall pay the full amount of the migrant worker wage guarantee fund that was exempted for that year in accordance with regulations.Promote the use of bank performance bonds and surety insurance systems, and encourage financial institutions to actively provide such services to enterprises. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Bureau of Human Resources and Social Security, People’s Bank of China Taizhou Branch, Taizhou Sub-bureau of the National Financial Regulatory Administration)

15. Promote judicial support. Continue to advance the “litigation-related exemption from deposit” initiative, strengthen dynamic management of the construction enterprise “whitelist,” and explore the introduction of guarantees provided by financial institutions such as insurance companies to assist enterprises in overcoming difficulties. Establish a “mediation + expedited adjudication” mechanism for construction industry disputes, and set up an arbitration and mediation center for disputes in the engineering construction sector to efficiently resolve conflicts involving enterprises.Local housing and urban-rural development departments may collaborate with judicial administration, financial regulatory authorities, and relevant industry associations to provide enterprises with policy, judicial, and financial support, thereby safeguarding their legitimate rights and interests. (Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Public Security Bureau, Municipal Bureau of Justice, Taizhou Branch of the National Financial Regulatory Administration)

16. Strengthen financial support. Encourage financial institutions to support construction enterprises in terms of credit limits, financing and loans, preferential interest rates, and guarantee insurance. For high-quality enterprises with normal production and operations that are temporarily facing liquidity difficulties, financial institutions shall not blindly withdraw or reduce loans, nor impose additional collateral requirements, thereby ensuring continuous and stable financing for enterprises.Financial institutions are encouraged to actively develop products tailored to the characteristics of the construction industry and to support enterprises in obtaining loans using construction materials, engineering equipment, and construction projects as collateral. For enterprises undertaking government-invested projects that meet credit policies and loan eligibility criteria, they may apply for loans by presenting construction permits and other relevant documents. For enterprises with strong financial capabilities and good credit standing that undertake overseas construction projects, medium- and long-term RMB loans and foreign exchange working capital loans may be provided.Establish an information-sharing mechanism whereby the Department of Housing and Urban-Rural Development promptly shares lists of outstanding construction enterprises with financial regulatory authorities for reference by financial institutions regarding credit limits, bid bonds, pledge financing, and loan disbursement. Localities may assist enterprises in resolving short-term funding difficulties through measures such as establishing construction industry transformation and development funds. (Responsible Units: Municipal Finance Bureau, Municipal Department of Housing and Urban-Rural Development, Taizhou Branch of the People’s Bank of China, Taizhou Sub-bureau of the National Financial Regulatory Administration)

17. Promote flexible law enforcement. In accordance with the principle of encouraging innovation, and while ensuring the quality and safety of construction projects, adopt a tolerant and prudent regulatory approach toward new technologies and business models in the construction industry, leaving ample room for industry development. Optimize regulatory enforcement methods by organically integrating “double-random, public disclosure” inspections with enterprise credit risk classification supervision and cross-departmental comprehensive supervision to foster a favorable business environment.Taking into account the nature and characteristics of construction enterprises, develop categorized administrative compliance guidance lists. For minor violations, actively employ administrative guidance measures such as recommendations, reminders, warnings, and corrective actions to encourage market entities and administrative counterparts to promptly self-correct, eliminate or mitigate social harm, and foster a culture of integrity and law-abiding business practices.(Responsible Units: Municipal Housing and Urban-Rural Development Bureau, Municipal Development and Reform Commission, Municipal Ecology and Environment Bureau, Municipal Urban Management Bureau, Municipal Transportation Bureau, Municipal Water Resources Bureau, Municipal Emergency Management Bureau, Municipal Market Regulation Bureau)

18. Strengthen Service Support. Fully implement policies and measures to relax market access for construction enterprises; identify and eliminate all types of explicit and implicit market barriers; and prohibit the imposition of additional conditions or discriminatory clauses on enterprises in violation of regulations. Establish a routine liaison and service system to assist enterprises with qualification applications, capital raising, project guarantees, technological innovation, project excellence initiatives, and the payment of performance bonds. Implement phased processing of construction permits for housing projects and promote the “pile foundation first” approach.For long-term construction projects, phases or sections that have passed acceptance inspections may be counted as valid project experience for enterprises when participating in bidding and qualification applications. Implement regulations on pricing based on quality, establish a system of higher prices for higher quality, and encourage all parties involved in construction to create high-quality projects. Implement the excellence initiative, giving priority to recommending green buildings as well as projects that implement green construction, modernize the construction industry, feature significant technological innovations, and actively adopt new technologies from the Ministry and provincial levels.Make full use of the platform for clearing overdue payments to private enterprises on state-invested projects; crack down on the practice of using commercial acceptance bills to pay contract prices; and regularly publicize cases of project payment arrears. Conduct a comprehensive investigation into overdue project payments and other accounts receivable in government-invested, state-funded, and real estate development projects; urge the timely payment of undisputed project arrears; and safeguard the legitimate rights and interests of construction enterprises.(Responsible Units: Municipal Bureau of Housing and Urban-Rural Development, Municipal Development and Reform Commission, Municipal Bureau of Industry and Information Technology, Municipal Finance Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Data Bureau, Municipal Market Regulation Bureau, Taizhou Branch of the National Financial Regulatory Administration)

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