Original Title: Ten Measures to Support the Development of Construction Enterprises

To thoroughly implement the strategic decisions of the CPC Central Committee and the State Council regarding the promotion of high-quality development, as well as the deployment requirements of the Provincial Party Committee and Provincial Government concerning the construction of a “Strong Province in Construction,” the following policy measures are formulated to foster and strengthen construction enterprises, enhance their overall competitiveness, promote the industrialization, digitization, and intelligent upgrading of the construction sector, and drive high-quality development in the construction industry.

I. Cultivating and Developing Leading Enterprises. Implement the “Building Strong Enterprises” cultivation initiative to provide support in areas such as qualification upgrades, technological innovation, capital raising, and enhancing market competitiveness, thereby strengthening the capacity of leading enterprises to undertake engineering projects such as railways, tunnels, urban rail transit, airports, and ports.Key enterprises are encouraged to establish national and provincial-level key laboratories, engineering (technology) research centers, and other science and technology innovation platforms. Support will be provided for applied research on new technologies and for applying for relevant national science and technology awards. Key enterprises will be supported in participating in the formulation of national, industry, and local standards for engineering construction, as well as construction methods; in applying for autonomous evaluation of junior and intermediate professional titles in construction engineering; and in organizing vocational skills training and vocational skills level certification.Support localities in providing financial incentives of 10 million yuan, 8 million yuan, 5 million yuan, and 1 million yuan, respectively, to construction enterprises whose annual revenue first reaches the 100-billion-yuan, 80-billion-yuan, 50-billion-yuan, and 10-billion-yuan thresholds;The provincial government will allocate funds from the Provincial Urban and Rural Construction Development Special Fund to subsidize these awards, covering 45% of the actual subsidy amount for the three prefectures and 35% for the remaining 18 cities. Actively cultivate “specialized, refined, distinctive, and innovative” enterprises in fields such as building-integrated photovoltaics (BIPV), seismic isolation and vibration reduction, power transmission and transformation, and smart building technologies. Encourage localities to provide one-time financial incentives to construction enterprises with annual revenue growth exceeding 20% and total revenue surpassing 100 million yuan.

II. Supporting Enterprise Transformation and Development. Accelerate the development of the Sichuan Construction Industry Internet. Support enterprises in partnering with universities and research institutes to form industrial innovation alliances, and promote the application of Building Information Modeling (BIM), big data, and smart construction. Accelerate green and low-carbon development in the construction sector, vigorously promote prefabricated construction and smart construction, and allocate funds from the provincial Urban and Rural Construction Development Special Fund to provide awards and subsidies for two-star and three-star green building projects, ultra-low energy consumption building projects, as well as demonstration projects featuring high prefabrication rates and smart construction.Actively promote engineering general contracting and cultivate the engineering general contracting market. Implement the “quality-based pricing” and “quality-first” policies; for projects that have won nationally or provincially recognized quality engineering awards established in accordance with regulations, the contracting party may grant rewards to the general contractor. At the same time, encourage localities where corporate income tax is levied to provide corresponding financial rewards to award-winning enterprises. For construction projects with special requirements regarding engineering quality and delivery, the tenderer may establish reasonable bonus points for bidders based on the quality engineering awards they have received.

III. Promoting Strategic Cooperation Among Enterprises. Encourage key provincial enterprises to form consortia with large construction enterprises entering Sichuan to bid on infrastructure projects such as urban rail transit, underground utility tunnels, expressways, railways, airports, and ports; recognize project performance achieved through consortia.Establish a pairing and collaboration mechanism between central state-owned enterprises, state-owned construction enterprises, and private construction enterprises operating in Sichuan to leverage their respective comparative advantages and enhance the market expansion capabilities of private construction enterprises. Promote in-depth cooperation between construction enterprises and government platform companies at all levels to improve enterprises’ comprehensive management capabilities in “investment, financing, construction, and operation.” Support eligible cities (prefectures) in establishing “major construction” groups led by key enterprises through equity diversification and other means to create development communities.

IV. Strengthen Talent Development. Establish a talent service platform for the construction industry to enhance the cultivation of versatile, innovative, and comprehensive senior management and professional talent.Encourage construction enterprises to strengthen in-house training. Expenditures on employee education not exceeding 8% of total wages and salaries may be deducted when calculating taxable income for corporate income tax purposes; amounts exceeding this limit may be carried forward and deducted in subsequent tax years. Encourage localities to introduce skill enhancement policies tailored to the industry’s characteristics, and provide skill enhancement subsidies to eligible personnel who have obtained vocational skill level certificates.Support construction enterprises in collaborating with local governments in labor-sending regions, as well as universities, vocational colleges, and research institutions, to jointly establish training bases for construction workers. Build the Sichuan construction labor brand and provide credit incentives to enterprises. Extensively organize skills competitions; winners of provincial-level construction skills competitions will be supported in applying for awards such as “Sichuan Provincial Technical Expert” and the “Sichuan May 1st Labor Medal.”

V. Optimizing the Market Business Environment. Implement the “separation of evaluation and award” system, as well as contactless bid opening and remote, off-site bid evaluation. The tender control price shall be prepared in accordance with relevant national and provincial pricing regulations, and contractors are encouraged to reasonably share price risks. It is encouraged to stipulate in contracts that reasonable compensation for project delays shall be provided in cases of work stoppages due to force majeure, severe air pollution, or support for major government events; any resulting losses or increased costs shall be reasonably shared in accordance with relevant regulations and contractual agreements.Standardize the “certificate locking” method for on-site personnel supervision; for ongoing construction projects, only the project manager of the construction enterprise and the chief supervising engineer of the engineering supervision unit shall be “locked.” When the same construction unit works on adjacent contract sections of the same project, it may use the same set of on-site management personnel that meets the project’s scale and work safety requirements. Promote inclusive and prudent regulation by compiling and implementing a list of minor violations in the construction market and on construction sites that are exempt from administrative penalties.

VI. Deepen Reforms in Qualification Approval. Accelerate the implementation of electronic review and electronic certificates to reduce approval times and improve efficiency. Expand the scope of the notification and commitment system and streamline the documentation required for enterprise qualification applications. Support Grade A (Comprehensive) and Grade 1 (Class A) general contracting enterprises in optimizing their qualification structures through lawful and regulated reorganization, mergers, and spin-offs. Improve the filing system for specialized subcontracted projects upon project completion; a company’s performance in undertaking subcontracted projects may be counted toward its qualification upgrade requirements.Optimize administrative licensing for work safety. Applications for changes to both construction enterprise qualification certificates and work safety permits may be submitted and approved simultaneously. Encourage municipal (prefectural) housing and urban-rural development administrative departments to administer work safety competency assessments for “work safety management personnel” and “special operations personnel” of construction enterprises within their jurisdictions.

VII. Focus on Reducing the Burden on Enterprises. Strictly enforce the relevant limits and refund regulations regarding bid bonds, performance bonds, and construction quality bonds. Fully implement the project guarantee system; construction enterprises may use bank guarantees, guarantees from specialized guarantee companies, or surety insurance to replace cash payments for various types of bonds.For construction projects undertaken by Party and government agencies and public institutions, the bid bond shall not exceed 1% of the estimated project value. Where a performance bond has already been provided or a performance bond has been paid prior to project completion, the project owner shall not simultaneously withhold a construction quality bond.Actively promote payment guarantees for construction projects; project owners shall provide payment guarantees to contractors. Strictly implement interim settlements during construction, and enforce the systems for advance payments, progress payments, and final settlement; contractors shall not be required to advance funds for construction. Project owners shall not use audit conclusions from audit authorities as the basis for final settlement, nor shall they delay settlement, withhold payments, or refuse to refund quality retention deposits on the grounds that an audit has not been completed.

VIII. Strengthen Financial and Fiscal Support. Establish and improve cooperation mechanisms among government, banks, and enterprises. Encourage construction enterprises with good credit standing to use construction contracts, construction permits, building materials, construction equipment, and self-built projects as collateral to apply for bank loans.Encourage banking institutions to support construction enterprises with market presence and good credit by offering favorable terms regarding credit limits, collateral arrangements, and preferential interest rates. Support construction enterprises in accessing direct financing through stock and bond markets to expand financing channels. Implement relevant national tax and fee preferential policies, such as those supporting the Western Development Strategy, additional deductions for R&D expenses, and accelerated depreciation of fixed assets, to support construction enterprises in conducting R&D and applications in fields such as new energy, energy conservation, and green construction.

IX. Promoting the Development of the Outward-Oriented Economy. Strengthen exchanges and strategic cooperation with key provinces (cities, districts), organize specialized promotional and exchange activities, and promote the “going global” of Sichuan construction enterprises. Establish a coordination mechanism for connecting with construction markets outside the province to assist enterprises in resolving issues such as project payment, workplace safety, rights protection, and emergency response. Build a service platform for the development of Sichuan’s construction industry to publish information on project tenders, enterprise labor recruitment, financial services, and legal consultations.Projects completed and awards received outside the province or overseas should be recognized when enterprises apply for qualifications, participate in bidding, compete for high-quality project awards, or undergo credit evaluations. Local governments are encouraged to provide one-time financial incentives to Sichuan-based construction enterprises whose annual revenue from projects outside the province or overseas exceeds 100 million, 500 million, or 1 billion yuan (with overseas revenue calculated in RMB equivalent).

X. Improve the Service and Support System. Strengthen consultation and analysis to coordinate solutions for key challenges facing construction enterprises. Establish a “mentoring and assistance” mechanism, whereby members of the leadership teams of housing and urban-rural development administrative departments at all levels shall each be paired with at least one construction enterprise to provide guidance and support for business development and help resolve operational difficulties.Establish an incentive mechanism to publicly commend construction enterprises based on annual revenue, growth contributions, emergency response, and other performance metrics. Project owners shall process all project-related procedures through the Sichuan Provincial Engineering Construction Project Approval Management System. If a construction project fails to complete the completion acceptance filing on time due to reasons not attributable to the construction contractor, relevant performance information may be entered into the Provincial Construction Market Supervision Public Service Platform based on the project completion acceptance report and specialized subcontracting contracts signed by all responsible parties.Strengthen epidemic prevention and control at construction sites. Support contractors and project owners in negotiating the inclusion of routine epidemic prevention and control measures fees within the project cost, based on the actual circumstances of the project, and account for costs resulting from reduced construction efficiency or idle labor due to epidemic prevention and control measures.

These measures shall take effect on the date of issuance and remain valid for five years.