Understand the return of the quality deposit for construction contract disputes

Mondo Social Updated on 2024-01-29

Understand the return of the quality deposit for construction project contract disputes and safeguard legitimate rights and interests

oneDefinitions

The return of the quality deposit refers to the funds reserved by the employer from the project payment payable in accordance with the agreement in the construction project contract to ensure that the contractor repairs the defects in the construction project during the defect liability period, and pays the contractor after the expiration of the defect liability period.

II. II. IIThe difference between a quality guarantee and a quality warranty

The quality margin corresponds to the defect liability period. The quality warranty corresponds to the quality warranty period.

ThreeLegal basis

3.1. Article 62 of the Construction Law, the construction project implements a quality warranty system, and the specific warranty scope and minimum warranty period are specified by the first party.

3.2. The Regulations on the Quality Management of Projects stipulate that the minimum warranty period for housing construction projects is: (1) the foundation and main structure of infrastructure projects and housing construction, which shall be the years specified in the design documents;(2) Waterproof and leak-proof for 5 years;(3) Heating and cooling system, for two heating and cooling periods;(4) 2 years for electrical pipelines, water supply and drainage pipes, and decoration.

3.3. Measures for the Management of Quality Deposit for Construction Projects

FourThe reserved ratio of the quality deposit and the return period

4.1. Article 6 of the Measures for the Administration of Quality Deposit for Construction Projects, the performance bond and the quality deposit cannot be reserved at the same time. Article 7, the reserved ratio shall not be higher than 3% of the total settlement amount. However, this provision is not mandatory and can be agreed to be higher than that percentage.

4.2 Article 17 of the Judicial Interpretation on Construction Projects (I) stipulates that the employer shall return the quality deposit.

FiveCourt of Jurisdiction

There is controversy as to whether exclusive jurisdiction applies.

SixReturn of the quality deposit

The return of the quality deposit shall depend on whether the defect liability period has expired, whether the return conditions have been fulfilled, and whether the agreement on the deposit is valid.

SevenLawyer advice

Construction contract disputes have strong requirements for professionalism, and when disputes occur, it is recommended to entrust professionals to participate in the resolution. If you have any legal questions that need to be consulted, you can consult "Zhang Fuzhou lawyer" and contact our lawyer.

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