Construction contracts in China: managing project risk

Construction projects in China sit within the PRC Civil Code, Construction Law, tendering rules and judicial interpretations. Standard forms may help with drafting, but mandatory law, qualification requirements and the actual performance record remain decisive.

Tendering and contractor qualifications

Projects subject to mandatory tendering must follow the statutory process. Parties should verify contractor qualifications and avoid unlawful subcontracting, affiliation or contract splitting that may affect validity and payment rights.

Variations, payment and evidence

Variation instructions, site records, acceptance documents and settlement confirmations often determine the outcome of a claim. Project teams should preserve signed evidence rather than rely on informal messaging after a dispute arises.

Delay and dispute resolution

Contracts should allocate responsibility for permits, design changes, site access, suspension and force majeure. The dispute clause must align with the project, available preservation measures and the location of assets.

Our real estate and disputes teams review project contracts and support claims through negotiation, arbitration and PRC court proceedings. This article is general information, not legal advice.

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