Administrative Regulation on Contracting Foreign Projects (2017 Amendment)

Administrative Regulation on Contracting Foreign Projects (2017 Amendment) Administrative Regulation on Contracting Foreign Projects Promulgated by the Order No. 527 of the State Council; and amended in accordance with the Decision of the State Council to Amend and Repeal Certain Administrative Regulationsand on March 1, 2017. Chapter I General Provisions Article 1 This Regulation is formulated to regulate the administration of the contracting of foreign projects and enhance the healthy development of the contracting of foreign projects. Article 2 For the purpose of this Regulation, the term “contracting foreign project” refers to an activity of a Chinese enterprise or other entity (hereinafter referred to as entity) of contracting an overseas construction project. Article 3 The state encourages entities to contract foreign projects and improve the quality and level of such projects. The relevant departments under the State Council shall formulate and improve the policies and measures favorable for contracting foreign projects, and set up and improve the service system and risk prevention mechanism for contracting foreign projects. Article 4 In contracting foreign projects, entities shall safeguard national interests, public interests and the legitimate rights and interests of their persons sent abroad. A foreign project contractor shall abide by the law of the country or region where the construction project is located, stick by the contract, respect the local customs and habits, protect the ecological environment and promote the local economic and social development. Article 5 The competent department of commerce of the State Council shall take charge of the supervision and administration of the foreign project contracting activities held nationwide, and the relevant departments under the State Council shall take charge of the relevant administrative work within their respective scope of duties and functions. The competent department of construction of the State Council shall organize and arrange construction enterprises to participate in contracting foreign projects. The competent department of commerce of the people's government of a province, autonomous region or municipality directly under the Central Government shall take charge of the supervision and administration of the foreign project contracting activities held in this administrative region. Article 6 Any association or chamber in contracting foreign projects shall provide information and training services thereabout for its members according to its articles of association, work out industrial norms according to law, give play to its role of coordination and self-discipline, safeguard fair competition and protect the interests of its members. Chapter II Foreign Project Contracting Activities Article 7 The competent department of commerce of the State Council shall, together with other relevant departments of the State Council, set up a safety risk assessment mechanism of foreign projects, publishing the safety evaluation results in the relevant countries and regions on a regular basis so as to provide pre-warning information in a timely manner and guide foreign project contractors to do well the safety protection. Article 8 No foreign project contractor may contract any project at an illegitimate low price or engage in collusive tendering or commercial bribery. Article 9 A foreign project contractor shall conclude a written contract with the project employer to clarify the rights and obligations of both parties, and both parties shall fulfill their obligations in accordance with the written contract. Article 10 A foreign project contractor shall strengthen the administration of project quality and production safety, and set up, improve and put into effect the rules and regulations on project quality and production safety administration. Where a foreign project contractor subcontracts a foreign project, it shall conclude a special agreement on project quality and production safety administration with the subcontractor or specify their respective responsibilities for project quality and production safety administration in the subcontracting contract, and shall coordinate and administer the project quality and production safety of the subcontractor in a unified way. No foreign project contractor may subcontract a foreign project to any entity without the qualification required by the state laws, or subcontract the construction part of a foreign project to a domestic construction enterprise which has not obtained the safe production permit according to law. No subcontractor may further subcontract a project. A foreign project contractor shall expressly forbid in the subcontracting contract the subcontractor to further subcontract the project, and shall take the responsibility for supervising the subcontractor to make sure that it abides by the contract clause. Article 11 To provide intermediate service of employing persons to be assigned abroad for foreign project contractors, an entity shall get the permit of the competent department of commerce of the State Council, and provide such intermediate service in accordance with the provisions of the competent department of commerce of the State Council. When......