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Recently, the Ministry of Housing and Urban-Rural Development issued a notice on further strengthening construction market regulation and continuously optimizing the market environment, setting specific requirements for market access management, bidding and evaluation procedures, and project contracting and subcontracting.Further strengthen the responsibility of market operators, enhance construction market supervision, optimize the market environment, standardize bidding and tendering order, and accelerate the establishment of a 'broad access, strict oversight, severe penalties' regulatory mechanism.
I. Strengthen Market Access Management
Enhance management of professional personnel registration and change records.For individuals who have changed their registration unit twice or more within one year, the notification commitment system will not apply when reapplying for registration.Strengthen the linkage between enterprise qualifications and personnel registration and practice qualifications. When enterprises apply for qualifications under the Ministry's approval, registered personnel required by qualification standards must generally not have been used in other enterprises’ applications for Ministry-level approvals within the past two years.Conduct early warning notifications: when registered personnel apply for cancellation or change, enterprises that will no longer meet qualification requirements after such changes will be alerted.Enhance information transparency by publicly displaying the number of registration unit changes and registration history of registered personnel on the National Public Service Platform for Construction Market Supervision.
II. Optimize Bidding and Awarding Mechanism
Accelerate implementation of the separation of bidding and evaluation to ensure consistent rights and responsibilities among bidding parties. Standardize expert behavior: evaluation committees shall provide clear evaluation opinions on technical proposals and bid prices based on tender documents, and recommend qualified winning candidates to the tenderer.Promote 'double-blind' evaluation by implementing 'blind selection' of experts and 'anonymous submission' of technical bids.Strengthen the responsibility of the tenderer, improve the awarding mechanism, require tenderers to establish scientific awarding rules, and build internal procedures, decision-making constraints, and risk prevention mechanisms to legally and compliantly determine the winner. Optimize evaluation methods for engineering services such as surveying, design, supervision, and cost estimation, emphasizing technical factors and focusing on evaluating project leaders and team capabilities, technical proposals, and increasing the weight of technical bids.Adhere to the principle of 'quality-based pricing', reasonably determine prices based on the content and quality of construction work and services to foster a market environment that values excellence.Advance the construction of a unified national market; prohibit the creation of disguised barriers or unfair competition in bidding and tendering activities.III. Standardize Project Contracting and Subcontracting ActivitiesStandardize project contracting: construction units must strictly follow contracting regulations, award projects only to qualified entities, and must not fragment projects for separate contracting.
Strengthen subcontracting management: general contractors are fully responsible for all construction activities, and must not subcontract, engage in fronting, or subcontract main structural works. They must not assign projects to unqualified subcontractors and must avoid 'contracting instead of managing'.
IV. Prevent and Resolve Risks of Project Payment ArrearsStrengthen constraints on payment behaviors: construction units must clearly define payment methods, timelines, and liability for breach in contracts with contractors to prevent payment delays.Fully implement project payment guarantees, encouraging priority use of surety bonds or bank guarantees to achieve 'payment upon demand'.
Strictly enforce the process settlement system: construction units must standardize settlement review procedures and timelines, pay progress payments in full according to contract terms, and prioritize payment for undisputed amounts. Improve dispute resolution mechanisms for project costs to enhance settlement efficiency.
V. Promote Digital and Intelligent Supervision of the Construction MarketImprove the National Public Service Platform for Construction Market Supervision and provincial integrated construction market management platforms.Accelerate integration with platforms for project approval, engineering quality and safety supervision, construction worker management, public resource transactions, and investment project approval to promote data sharing and interconnectivity.
Promote 'Artificial Intelligence + Bidding and Tendering Supervision': leverage big data and AI technologies to develop analytical early-warning models covering pre-bid, during-bid, and post-bid phases, enhancing automated data comparison and improving detection of illegal and non-compliant activities such as unregistered tenders and bid-rigging. Accelerate digital transformation of supervision: through data comparison in regulatory systems, conduct in-depth analysis of transaction projects and stakeholder behaviors, implement intelligent alerts, effectively identify violations like subcontracting, illegal subcontracting, fronting, and certificate hanging, and improve the effectiveness of construction market supervision.
Local housing, urban-rural development authorities must attach great importance to construction market regulation, further improve working mechanisms, innovate regulatory approaches, continuously optimize the market environment, and promote high-quality development of the construction industry. Strengthen accountability: investigate and deal with violations in accordance with laws and regulations; where misconduct or criminal acts are suspected, promptly refer cases to disciplinary inspection and supervision organs or judicial authorities.The notice emphasizes that local housing and urban-rural development authorities must attach great importance to construction market regulation, further improve working mechanisms, innovate regulatory approaches, continuously optimize the market environment, and promote high-quality development of the construction industry. Strengthen accountability: investigate and deal with violations in accordance with laws and regulations; where misconduct or criminal acts are suspected, promptly refer cases to disciplinary inspection and supervision organs or judicial authorities.__T27____T28__
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