Rules of the Shenzhen Special Economic Zone on Management of Enterprises Undertaking Construction
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Rules of the Shenzhen Special Economic Zone on Management of Enterprises Undertaking Construction
Author:xcd   Article source: www.xcdacc.cn  Hits:1396  Add time:2009-5-28  

Rules of the Shenzhen Special Economic Zone on Management of Enterprises Undertaking Construction
Promulgated by Order No. 50 of the Shenzhen Municipal People's Government of March 5, 1996 and revised according to Order No. 118 of the Shenzhen Municipal People's Government of July 23, 2002)

  Chapter I General Provision

  Article 1 In order to strengthen the management of enterprises undertaking construction in the Shenzhen Special Economic Zone (hereinafter referred to as the Special Zone), maintain the normal order of the construction market, these rules are hereby formulated in accordance with the related rules of the state and Guangdong Province and in the light of the specific conditions of the Special Zone.

  Article 2 These rules shall apply to business permission and routine management of the enterprises.

  The enterprise undertaking construction referred to in these rules shall mean those enterprises engaged in various activities such as house building, civil engineering, equipment installation, pipeline laying, including specialized work on decoration, gardening for green-making, fire control, demolition, harbor, water conservancy, power transmission and transformation, etc.

  Article 3 The Shenzhen municipal administrative department of construction shall be the responsible department for enterprises undertaking construction in their profession (hereinafter referred to as the municipal responsible department).

  The administrative departments of construction of various districts (hereinafter referred to as the district responsible departments) shall register and manage the enterprises undertaking construction within their respective administrative jurisdiction according to their prescribed duties and authority.

  Chapter II Business Permission for Enterprises Undertaking Construction

  Article 4 To form an enterprise undertaking construction, a branch or to undertake a contracted individual project, it shall be in line with the needs of construction and development of the Special Zone, approved by the municipal responsible department, and granted a qualified contractor certificate for an enterprise undertaking construction. Without the qualified contractor certificate, any enterprise undertaking construction shall not contract to undertake construction.

  Article 5 To form an enterprise undertaking construction, an application for name registration shall be submitted to the Shenzhen municipal department of industry and commerce administration, the approved name shall be used to file a written application to the municipal responsible department, and the following certificates or materials shall be submitted for verification at the same time:

  (1) the articles of enterprise;

  (2) the certificate of verified capital;

  (3) the resumes and professional title certificates of the planned legal representative, chief officer in technology, chief officer in finance;

  (4) the professional title certificates of the planned key members of the enterprise's personnel in technology, economy, and accounting;

  (5) the composition of the planned employees of the enterprise;

  (6) the list of the equipments planned to be provided with.

  Article 6 For the other region's enterprise undertaking construction to form a branch, it shall be done through individual project permission and long-term permission. If it is the first-time application that has been examined and approved, the individual project permission shall be granted; if two individual projects of the appropriate levels have been completed in the Special Zone with high quality of construction and without accidents of quality and safety, the enterprise undertaking construction may file an application, after the municipal responsible department has examined and approved the application, the long-term permission shall be granted to the enterprise which is in line with the needs of the Special Zone. When undertaking a contracted individual project in Shenzhen, the other region's enterprise shall apply to the municipal responsible department for permission of individual type of work.

  Article 7 When applying for individual project permission, the other region's enterprise undertaking construction shall submit to the municipal responsible department a written application and also the following certificates or materials at the same time for verification:

  (1) the certificate for going to other regions to undertake construction issued by a provincial administrative department of construction or the related responsible department of the State Council;

  (2) a copy of Business License for Enterprises as Legal Persons examined and issued by the local department of industry and commerce administration, and stamped with the official seal of the original certificate-issuing department;

  (3) a copy and duplicated versions of the certificate of the enterprise's competence level (the enterprises undertaking construction which are directly affiliated with the Guangdong Province or other provinces, ministries of the central government shall hold the certificates for the first level competence, the enterprises undertaking construction which are affiliated with municipalities or counties within the Guangdong Province shall hold the certificates for the first level or second level competence);

  (4) the power of attorney of the legal representative;

  (5) the certificates of funds and credits;

  (6) the certificates of professional titles of the personnel in technology, economy, and accounting who are to enter the Special Zone according to planning, and the post certificates of the key operators of the technical work type;

  (7) the list of equipments planned to be shipped to the Special Zone;

  (8) the materials to certify the major achievements;

  (9) the letter of intent on contracted project.

  Article 8 For a foreign enterprise undertaking construction to come to this city to provide construction services, it shall be dealt with according to the related law and regulations of the state.

  Article 9 In case of applying for forming an enterprise undertaking construction or individual project permission, the municipal responsible department shall give a written reply within 3 days from the date of receiving all the necessary application materials, and notify the applying unit.

  Article 10 An applying unit shall get the related matters done within 3 months from the date of receiving the approval document of the municipal responsible department, take and fill out Form for Registration of an Enterprise Undertaking Construction as a Qualified Contractor to apply for a qualified contractor certificate; if the related matters have not been done and Form for Registration of an Enterprise Undertaking Construction as a Qualified Contractor has not been taken and filled out after three months, the approval document shall automatically cease to be valid.

  The municipal responsible department shall examine the competence of the applying unit according to the materials written and reported by the applying unit and Standards of Competence Levels of Enterprises Undertaking Construction promulgated by the Ministry of Construction, and give a reply within 14 days from the date of receiving the completed Form for Registration of an Enterprise Undertaking Construction as a Qualified Contractor. In case of passing the examination, a qualified contractor certificate for an enterprise undertaking construction shall be issued to set the business scope for the enterprise to undertake contracted projects; in case of failure to pass the examination, no permission shall be granted and the applier shall be notified of the decision.

  The competence level of a newly-formed enterprise undertaking construction shall be set at the lowest level as a starting point.

  Article 11 If the other region's enterprise undertaking construction is applying for long-term permission, it shall submit to the municipal responsible department the following materials:

  (1) the materials to certify the achievements of construction in Shenzhen;

  (2) the change of employees and equipments.

  The municipal responsible department shall complete the examination within 30 days from the date of receiving all the necessary application materials. In case of passing the examination, the permission shall be granted; in case of failure to pass the examination, no permission shall be granted and the applier shall be notified of the decision.

  Article 12 A qualified contractor certificate shall be the certificate of the qualifications of an enterprise undertaking construction to undertake contracted projects, and examined by the certificate-issuing office once a year. Any unit and individual shall not loan, rent, transfer, alter or forge a qualified contractor certificate.

  Article 13 After receiving a qualified contractor certificate, an enterprise undertaking construction shall go through the formalities of enterprise registration at the municipal department of industry and commerce administration.

  Article 14 If a project is to be under the management of a district responsible department according to the rules on jurisdiction of management of projects, the enterprise undertaking construction shall bring the qualified contractor certificate to the district responsible department under the jurisdiction of which the project is to be managed, and register there. For the enterprises undertaking construction which have already got permission from the municipal responsible department, various district responsible departments shall register and manage them directly without examining their qualifications.

  Article 15 If an enterprise undertaking construction wants to change its name, domicile in the Special Zone, economic nature, legal representative, or agent stationed in the Special Zone, it shall go through the formalities to make such a change at the municipal responsible department within 15 days from the date of approval by the municipal department of industry and commerce administration.

  In case of change of chief officer in technology, an enterprise undertaking construction shall go through the formalities for such a change at the municipal responsible department within 15 days from the date of the change.

  Article 16 When bringing to an end its business of undertaking contracted projects in the Special Zone, an enterprise undertaking construction shall cancel the registration at the responsible department, return the qualified contractor certificate, and pay the management fee in full according to rules.

  Article 17 If the other region's enterprise undertaking construction has not undertaken construction in the Special Zone for one year or its output value of construction has been in two consecutive years lower than the minimum value set by the municipal responsible department, the qualified contractor certificate of the enterprise shall be cancelled by the municipal responsible department.

  Chapter III Routine Management of Enterprises Undertaking Construction

  Article 18 An annual assessment system shall be put into practice for enterprises undertaking construction. The municipal responsible department shall be in charge of the annual assessment which is held in November every year.

  At the time of the annual assessment, enterprises undertaking construction shall provide materials, fill out and submit annual assessment forms according to the annual assessment notice of the year.

  The municipal responsible department shall conduct the annual assessment in compliance with the related rules on the annual assessment of enterprise competence. In case of passing the annual assessment, a special seal for annual assessment shall be affixed; in case of failure to pass the annual assessment, the penalty decisions such as rectifying by a deadline, reducing the scope of being qualified to undertake construction, lowering the competence level, revoking the qualified contractor certificates, etc., shall be made in the light of specific conditions.

  Article 19 In accordance with the state of business, quality of construction, safety of production, and achievements of an enterprise undertaking construction, the municipal responsible department may make necessary adjustments of the competence level and business scope of the enterprise undertaking construction in the Special Zone.

  Article 20 The business activities of an enterprise undertaking construction shall be consistent with what is stipulated in the enterprise's qualified contractor certificate, it shall be forbidden to undertake contracted projects which are out of the scope prescribed by the qualified contractor certificate.

  Article 21 When undertaking a contracted project, the first-level, second-level, and third-level enterprises undertaking construction may subcontract according to rules; the fourth-level enterprises undertaking construction shall not be allowed to do so when undertaking a contracted project. It shall be forbidden for any enterprise to transfer a contracted project.

  Article 22 An enterprise undertaking construction shall submit statistical reports on construction according to rules and pay the management fee of construction enterprise to the municipal responsible department according to a prescribed standard.

  Article 23 When the first-level, second-level enterprises undertaking construction which are affiliated with the municipality go to other regions to do construction, they shall apply to the municipal responsible department for letters of introduction for undertaking construction in the other regions; if there are any major accidents of quality, injury taking place when enterprises are undertaking construction in other regions, reports shall be filed to the responsible departments in prescribed time.

  Chapter IV Penalty Provision

  Article 24 If an enterprise undertaking construction has engaged in construction in the Special Zone without a qualified contractor certificate in violation of Article 4 of these rules, the municipal responsible department shall order stopping construction and impose a fine of 2% of the earnings from the contracted project.

  Article 25 In case of loaning, renting, transferring a qualified contractor certificate in violation of Article 12 of these rules, the municipal responsible department shall impose a fine of more than 10,000 but less than 30,000 RMB; if the circumstances are serious, the qualified contractor certificate shall be suspended for 6 months or up to for ever.

  In case of altering, forging a qualified contractor certificate in violation of Article 12 of these rules, the municipal responsible department shall impose a fine of more than 30,000 but less than 50,000 RMB and confiscate the qualified contractor certificate.

  Article 26 If an enterprise undertaking construction has failed to register at a district responsible department in violation of Article 14 of these rules, the district responsible department shall order registration by a deadline; if the registration has not been done after the deadline, the district responsible department shall instruct the enterprise to stop undertaking contracted projects, and may also impose a fine of more than 10,000 but less than 30,000 RMB.

  Article 27 If an enterprise undertaking construction, in violation of Article 20 of these rules, has undertaken a contracted projects which goes beyond the scope prescribed by the qualified contractor certificate, the municipal or district responsible departments shall order stopping construction and also impose a fine of 2% of the cost of the project; if the circumstances are serious, the municipal responsible department shall inflict penalties from reducing the scope of undertaking contracted projects up to canceling the qualified contractor certificate.

  Article 28 If an enterprise undertaking construction has transferred a contracted project or failed to subcontract according to rules in violation of Article 21 of these rules, the municipal responsible department shall order immediate correction, impose a fine of 2-3% of the cost of the transferred or subcontracted project, and prohibit the enterprise from entering a bid for 6 months; if the circumstances are serious, the municipal responsible department shall cancel the qualified contractor certificate.

  Article 29 If the party concerned has refused to accept the penalty decision made by a district responsible department, an application for review may be filed to the municipal responsible department within 15 days from the date of receiving the notice of penalty decision; if the party concerned has refused to accept the penalty decision made by the municipal responsible department, an application for review may be filed to the administrative review office of the municipal people's government within 15 days from the date of receiving the notice of penalty decision; if the review decision has been refused to accept, legal action may be taken at the people's court within 15 days from the date of receiving the notice of review decision. The party concerned may also take legal action directly at the people's court within 15 days from the date of receiving the notice of penalty decision. If the party concerned has failed either to apply for review by a deadline or to take legal action, and refused to implement the penalty decision at the same time, the office which made the penalty decision shall apply to the people's court for enforcement.

  Article 30 If the staff members of the municipal or district responsible departments have neglected their duties, practiced favoritism and engaged in irregularities, extorted and accepted bribes, the administrative responsibility shall be investigated into according to law; if a crime has been constituted, the criminal responsibility shall be investigated into according to law.

  Chapter V Supplementary Provision

  Article 31 These rules shall take effect as of the date of promulgation. Notice on Strengthening the Management of Enterprises Undertaking Capital Construction No. 189 [1985] of Shenzhen Government and Provisional Measures of the Shenzhen Municipality on the Management of Enterprises Undertaking Construction No. 305 [1991] of Shenzhen Construction shall be nullified at the same time.

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