Chapter 3 Contracting of Works
Article 22
Only the comprehensive construction enterprises that have planning and design qualifications according to the law may undertake works in the way of integrated contracting.
Article 23
Contracting of works shall be performed according to the limit of construction cost and the range of construction scale of the enterprise, and the total amount of the works contracted in a certain period may not exceed 20 times the net value of amount of capital.
Provisions on calculation of the construction cost limit, range of construction scale, and determination of the certain period mentioned above shall be prescribed by the central competent authority.
Article 24
Where two or more construction enterprises jointly undertake works, they shall sign the contract together and establish a joint contracting agreement to take the responsibilities prescribed in the contract of the works.
The above-mentioned joint contracting agreement shall include the following contents:
1. Range of work.
2. Investment ratio.
3. Rights and obligations.
The limit of construction cost as prescribed in the above article is also applicable to the construction enterprises that participate in joint contracting.
Article 25
The construction and repair works or specialized works contracted by a comprehensive construction enterprise may be subcontracted to specialized construction enterprises unless the orderer requires the comprehensive construction enterprise to perform construction by itself, and the comprehensive construction enterprise shall burden the construction liabilities of the subcontracted works, and the subcontractor specialized construction enterprise shall assume joint and severe liabilities for the subcontracted proportion of the works.
Where the subcontract is reported to the orderer for reference and has been recorded by the subcontractor specialized construction enterprise in the projects contracting manual, and the comprehensive construction enterprise has transfer the rights of the subcontracted proportion to the subcontractor specialized construction enterprise, the mortgage rights under Article 513 and the right to claim caused by accession under Article 816 of the Civil Code are equivalent to the comprehensive construction enterprise's rights to claim price or remuneration from the orderer.
Besides to undertake subcontracted works according to the first paragraph, specialized construction enterprises may, according to the items of registered specialized works, hire specialized works and the necessary related construction & repair works from manufacturers on order.
Article 26
Construction enterprises shall work out worksite construction shop drawings and construction plans according to the working drawings and specifications to construct the works contracted.
Article 27
The contract of construction and repair works shall include the following contents:
1. Parties concerned of the contract.
2. Name, address and contents of the works.
3. Currency amount, and date and method of payment.
4. Date of commencement and completion of the works, as well as calculation of the construction period.
5. Disposal of alteration of the contract.
6. Provisions on adjustment of project funds according to the price index.
7. Disposal of disputes.
8. Provisions on acceptance and maintenance.
9. Provisions on quality control of the works.
10. Compensation for breach of contract.
11. Provisions on termination or cancellation of contract.
Implementation of the above paragraph will be determined by the central competent authority otherwhere.