The model contracts prescribed by the responsible entity shall, in principle, be adopted by the entity. The essential requirements and contents for such contracts shall be prescribed by the responsible entity by taking the international and domestic practices into consideration.
An entity shall stipulate in the contract the responsibility of one party in the event that erroneous execution, falsity or poor management has caused damages to the other party.

It may be provided in a procurement contract that when continuous performance by the supplier pursuant to the contract is against the public interest due to policy change, an entity may, with the approval of a superior entity, terminate or rescind such procurement contract, in part or in whole, and compensate the supplier for any loss resulting therefrom.

The contractor shall perform the contact for construction work or services by itself and may not assign the contract to others.
The term of contract assignment referred to in the preceding paragraph means an arrangement under which a contractor makes another supplier perform all or the major part of the contract for it.
The preceding two paragraphs shall apply mutatis mutandis to a contract for property not readily available and required to be supplied through certain performance process.

In the event that a contractor is in breach of the requirement of the preceding Article by assigning a contract to another supplier, the entity may terminate the contract, rescind the contract, or forfeit the contractor’s guarantee bond, and in addition claim for damages.
The assignee referred to in the preceding paragraph and the contractor shall bear the liabilities for performance and damages jointly and severally. The foregoing shall also apply to the cases of re-assignments.

A contractor may subcontract the contract to other suppliers. The terms "subcontracting" means an arrangement not constituting an assignment but pursuant to which another supplier performs a part of the contract for the contractor.
In the event that a subcontract has been reported to the entity for file and that the subcontracted part has been pledged by the contractor to the subcontractor, the subcontractor will have the mortgage right under Article 513 and the claim based on addition under Article 816 of the Civil Code in terms of the claim of the contractor for the contract value or compensation against the entity.
Under the circumstance referred to in the preceding paragraph, the subcontractor for the part subcontracted to it shares the liabilities of warranty with the contractor jointly and severally.

The claim of a contractor against an entity for contract value or compensation under a contract, whether in whole or in part, may be the object of a pledge.

(Deleted)

An entity conducting a procurement for construction work shall stipulate the responsibility of the supplier for quality control, environment protection, as well as safety and hygiene of the work, and shall also establish inspection procedures and standards for the major items of the construction work.
The entity may effect an inspection by segment during the supplier's performance of the contract, and the outcome of such inspection may be used as a basis for the acceptance.
The central, municipal, and county (city) governments shall each establish construction work surveillance unit(s) to periodically monitor their subordinate entities on matters of construction quality, progress, etc.
The regulations governing the organization of the construction work surveillance unit shall be prescribed by the responsible entity and promulgated after approval of the Executive Yuan. The regulations of its operation shall be prescribed by the responsible entity.
Paragraphs 1 and 2 shall apply mutatis mutandis to a contract for property or services not readily available, and required to be performed through certain performance process.

In conducting planning or design of a construction work, an entity shall analyze the potential construction hazards depending on the construction scale and characteristics, prepare the drawings and specifications related to safety and health in accordance with the Occupational Safety and Health Act and its regulations, and quantify the expenditures of safety and health thereof.
In conducting a procurement of construction work, an entity shall include in the tender documentation the design results of the preceding paragraph, and the requirements of the supplier to arrange or take necessary preventive equipments or measures according to the Occupational Safety and Health Act and relevant regulations, and implement management and training concerning safety and health to prevent occupational accidents of workers and ensure the safety of construction.
Where an occupational accident occurs in the construction site due to lack of required equipments or facilities related to safety and health or poor of them against the related regulations or contract, the supplier shall not only be punished pursuant to the Occupational Safety and Health Act and its regulations, but also be dealt with according to this Act and the requirements of a contract.