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Construction Law of the People's Republic of China

(Issued on November 1, 1997 and by President's decree of PRC No. 91 Adopted at the 28th Meeting of the Standing Committee of the Eighth National People's Congress and implementation as of March 1st, 1998)


CHAPTER I GENERAL PROVISIONS

Article 1 With a view to strengthening supervision and regulation of construction activities, maintaining construction market order, ensuring the quality and safety of construction projects and promoting the healthy development of construction industry, this law is hereby formulated.

Article 2 Construction activities and supervision of construction activities conducted within the territory of the People's Republic of China shall abide by this law.

Article 3 Construction activities have to guarantee the quality and safety of construction projects and comply with the State's safety standards for construction projects.

Article 4 The State assists the development of construction industry, supports research on construction science and technology in order to raise the level of housing and construction design, encourages saving of energy and environmental protection and advocates the adoption of advanced technology, advanced equipment, advanced process, new building materials and modern managerial methods.

Article 5 Conduct of construction activities shall observe laws and regulations and should in no way undermine social and public interests as well as the legitimate interests of others.

Article 6 The competent construction administrative department under the State Council shall exercise unified supervision and regulation over construction activities of the whole country.

CHAPTER II CONSTRUCTION LICENSING SECTION I WORKING LICENSES FOR CONSTRUCTION PROJECTS

Article 7 Before the start of construction projects, construction units shall, in accordance with the relevant provisions of the State, apply to the competent construction administrative departments under the prefecture-county governments or above for construction licenses, except for small projects below the threshold value set by the competent construction administrative department under the State Council.

Construction projects which have obtained approval of work start reports in accordance with the power limits and procedure stipulated by the State Council are no longer required to apply for construction licenses.

Article 8 The following conditions are required for the application of construction licenses:

(1) Having gone through the approval formalities for construction project land use;

(2) Construction projects within urban planned districts have obtained licenses of planning;

(3) Where demolition and relocation are necessary, the progress of demolition and relocation comply with the requirements of construction;

(4) Constructing enterprises for the projects have been chosen;

(5) Working drawings and technical data are available to meet the need of construction;

(6) Specific measures are available for ensuring the quality and security of construction;

(7) Funds of construction are available;

(8) Other conditions as stipulated by laws and administrative regulations.

The competent construction administrative departments shall issue construction licenses to qualified applicants within 15 days from the date of receipt of applications.

Article 9 Units in charge of construction should start to build the projects within three months since obtaining construction licenses.  If work cannot start on schedule, applications should be filed to the license issuing agencies for delay, which shall only be permitted twice in maximum for each case, each permission of delay covering a maximum period of three months. In cases of those projects that neither start on schedule nor apply for delay or exceed the period of permitted delay, the validity of the working licenses automatically expires.

Article 10 For projects under construction that come to a halt due to some reasons, the constructing units should report to the license issuing agencies within one month from the stoppage of construction and should also well maintain and manage the construction projects in accordance with provisions.

When construction work resumes, reports should be filed with the license issuing agencies; Before the resumption of work on construction projects which have stopped for over one year, units in charge of construction shall apply to the license issuing agencies for verification of their working licenses.

Article 11 For construction projects with approval of work-start reports in light of the relevant provisions of the State Council which fail to start construction on schedule or suspend the construction work due to certain reasons, the constructors should report the cases timely to the approving authorities. If the period of non-start of work due to certain reasons exceeds six months, the constructors shall re-go through the formalities of approval for work-start reports.

SECTION II QUALIFICATIONS OF CONSTRUCTORS

Article 12 Construction engineering enterprises, prospecting units, design units and project supervisory units which engage in construction activities shall possess the following conditions:

(1) Possession of registered capital that complies with the State provisions;

(2) Possession of specialized technical personnel with statutory professional qualifications consistent with the construction activities they engage in;

(3) Possession of technologies and equipment that are necessary for related construction activities.

(4) Other conditions as stipulated by laws and administrative regulations.

Article 13 Construction engineering enterprises, prospecting units, design units and project supervisory units are rated into different classes according to their registered capital, professionals and technicians, technical equipment and performance record of completed construction projects, etc.  Only when they pass qualification examinations and obtain appropriate qualification certificates may they engage in construction activities commensurate to the scope of their qualification classes.

Article 14 Specialized technical personnel engaging in construction activities shall attain the relevant certificates of professional qualification and conduct building activities within the scope of their certificates of professional qualifications.

CHAPTER III CONTRACT AWARDING AND CONTRACTING OF CONSTRUCTION PROJECTS

Article 15 Contract awarding units and contractors for construction projects shall conclude written covenants, specifying the rights and obligations of each party.

Contract awarding units and contractors should fully fulfill their contractual obligations. Failure to fulfill contractual obligations is subject to contract-breach responsibilities under the laws.

Article 16 The tendering and bidding activities for contracting of construction projects shall follow the principle of openness, justice and equal competition, and contractors should be selected based on their merits.

Tendering of and bidding for construction projects which is not covered by this law shall follow the relevant laws on tendering and bidding.

Article 17 Contract awarding units and their staff shall not take bribery, commissions or seek other benefits in the process of contract awarding for construction projects.

Contractors and staff members thereof shall not undertake projects through illegitimate means such as offering bribes, commissions or other benefits to the units contracting out the projects or staff members thereof.

Article 18 Construction cost of the projects shall be agreed upon in the contracts by both the contractors and the out-contracting units in accordance with relevant regulations of the State. For projects subject to public bidding, the construction cost shall be agreed upon in line with the provisions of the tendering law.

The out-contracting units shall appropriate project funds in a timely manner in accordance with the provisions of the contracts.

Article 19 Construction projects shall be contracted through public bidding according to law and those not suitable for bidding can be contracted out directly.

Article 20 For construction projects subject to open bidding, the out- contracting units shall, in accordance with legal procedures and methods, publish invitations for bid and provide tender documents containing major technical requirements of the projects subject to bidding, key contract terms, standards and methods for evaluation of bids as well as the procedures for the opening, evaluation and determination of bids.

The bids shall be opened at the time and place specified in the tender document, after which the bids shall be evaluated and compared in accordance with the evaluation standards and procedures specified by the tender documents. Successful bidder shall be selected among the bidders with appropriate qualifications based on their merits.

Article 21 The opening, evaluation and determination of bids in the process of tendering for construction projects shall be organized and implemented by the project owners and shall be subject to the supervision of relevant administrative departments.

Article 22 For construction projects subject to bidding, the out- contracting units shall contract out the projects to the contracting units which have won the bid in accordance with law.  For construction projects subject to direct contracting, the out-contracting units shall contract out the project to the contracting units with appropriate qualifications.

Article 23 The government and its subordinate departments shall not abuse their administrative power by requiring the out-contracting units to contract out the construction projects to designated contracting units.

Article 24 Overall contracting of projects is encouraged and the contracting of construction projects in parts shall be prohibited.

The out-contracting units of construction projects can contract out either the survey, design, construction and equipment purchase of the construction units to a single overall contracting unit or one or some of these tasks to an overall contracting unit.  However, the out- contracting units shall not divide the construction projects which shall be undertaken by one contracting units into several parts for out- contracting to several different contracting units.

Article 25 For building materials, components and equipment which shall be purchased by the project contracting units as specified by the contracts, the out-contracting units shall not designate the building materials, components and equipment for the projects to be purchased by the contracting units or designate manufacturers and suppliers thereof.

Article 26 The project contracting units shall hold legally-obtained certificates of qualifications and contract projects within the business scope as allowed by their level of qualification.

Project contracting units are prohibited from contracting projects beyond the business scope as allowed by their level of qualification or in the name of other construction enterprises in any form.  Construction enterprises are prohibited from allowing other units or individuals to use their own certificates of qualification, business licenses or their name in any form in order to contract construction projects.

Article 27 Large construction projects or complex construction projects can be jointly contracted by two or more contracting units. Parties to joint project contracting shall bear joint responsibilities for the implementation of the contract.

For joint contracting by two or more units with different levels of qualification, projects shall be contracted within the business scope of the contracting unit with the lower level of qualification.

Article 28 Contracting units are prohibited from subcontracting the entire construction projects undertaken by the contracting units to others and they are prohibited from dividing the entire construction projects into parts and then subcontracting those parts to others.

Article 29 The overall contracting units can subcontract part of the projects to subcontractors with appropriate qualifications.  However, except for the subcontracting as specified in the overall contracts, approval from project owners shall be obtained. With regard to overall project contracting, the construction of the main structure of the project shall be completed by the overall contracting units.

The overall contracting units shall be held responsible to project owners in accordance with the provisions of the overall contracts; The subcontractors shall be held responsible to the overall contractors in accordance with the terms of the subcontracting contracts. The overall contractors and subcontractors shall bear joint responsibilities to project owners for the subcontracted projects.

The overall contracting units are prohibitied from subcontracting the projects to units without appropriate qualifications. The subcontractors are prohibitied from re-subcontracting the sub-contracted projects.

CHAPTER IV SUPERVISION OF CONSTRUCTION PROJECTS

Article 30 The State adopts the system of project construction supervision.

The State Council can stipulate the scope of construction projects subject to compulsory supervision.

Article 31 Construction projects subject to supervision shall be supervised by project supervising units with appropriate qualifications entrusted by the project owners. The project owners shall enter into written contracts on supervision with the entrusted project supervising units.

Article 32 The construction supervising units shall, on behalf of project owners, carry out supervision of the construction quality, construction period and the use of construction funds in accordance with laws, administrative regulations and relevant technical standards, design documents and contracts for project contracting.

When project supervising personnel think the construction work is not in line with the requirements of project design, technical standards for construction and the terms of the contracts, they have the right to demand corrections from the construction units.

When project supervising personnel find that project design is not in conformity with the quality standards for project construction or the quality requirements as specified in the contracts, they shall report to the project owners who shall then demand corrections from the designing units.

Article 33 Prior to the implementation of the supervision of project construction, the project owners shall inform the construction enterprises in written form of the project supervising unites entrusted, contents for supervision and the scope for supervision.

Article 34 The construction supervising units shall undertake project supervising business within the scope of supervision as allowed by their level of qualifications.

The construction supervising units shall carry out construction supervision in an objective and fair manner in accordance with the entrustment by the project owners.

The construction supervising units shall not have subordinate relations with or other stakes in the contracting units under supervision and the suppliers of building materials, components and equipment.

The construction supervising units shall not transfer the supervising business.

Article 35 If the construction supervising units do not fulfill their obligations in accordance with the terms of the contract for supervision and do not inspect the items that should be supervised or do not follow the regulations in carrying out the supervision, which has resulted in losses on the part of project owners, the supervising units shall bear the corresponding liability for damages.

If the supervising units collude with the contracting units in order to reap illegitimate profits for the contracting units, which has resulted in losses on the part of project owners, the supervising units shall bear joint liability for damages.

CHAPTER V MANAGEMENT OF CONSTRUCTION SAFETY AND OPERATION

Article 36 The administration of safety in construction operation shall follow the principle of safety and prevention first. The responsibility system for operation safety and the regime of prevention and treatment by the masses shall be established and perfected.

Article 37 The design of construction projects shall be in line with the safety standards for construction and technical specifications in order to ensure the safety performance of the projects.

Article 38 When planning construction organization and designing, the construction projects shall formulate appropriate safety technical measures according to the characteristics of the construction projects; With regard to construction projects with a high degree of technical speciality, special safety construction organization and designs shall be formulated and safety technical measures shall be adopted.

Article 39 The construction enterprises shall take measures aimed at maintaining safety, preventing dangers and fires. When condition allows, the construction site shall be sealed up.

When the construction site may cause damages to the adjacent buildings, structures and special operating environment, the construction enterprises shall adopt safety and preventive measures.

Article 40 The project owners shall provide the construction enterprises with the documents concerning underground pipeline layout related to the construction site and the construction enterprises shall take preventive measures.

Article 41 In accordance with laws and regulations concerning environmental protection and safety in operation, construction enterprises shall adopt measures to control and clear environmental pollution and harm resulting from various kinds of dust, waste gas, waste water, solid waste materials, noise and vibration at construction sites.

In accordance with relevant state regulations, units undertaking projects shall go through application and approval procedures for following matters:

(1) Need to temporarily occupy areas not covered by approved construction programs;

(2) Likely to damage roads, pipes and electric wires, power supply and post and telecommunication equipment and other public facilities;

(3) Need to temporarily cut off water and power supply or hold up traffic;

(4) Need to conduct blasting operations;

(5) Other matters for which application and approval procedures are required in accordance with the stipulations of laws and regulations.

Article 43 Administrative authorities on construction are responsible for the administration of safety in construction operation and shall, according to law, subject themselves to the instruction and supervision on safety in construction operation by administrative authorities on labor.

Article 44 Construction enterprises shall, according to law, strengthen the safety in construction operation, enforce the safe operation responsibility system, and prevent casualties and other operation accidents by adopting effective measures.

The legal representative of a construction enterprise is responsible for the safety in operation of this enterprise.

Article 45 Construction enterprises are responsible for the safety at construction sites.  As to a construction project under an overall contract, the overall contractor is responsible for the safety at construction sites. Subcontractors shall hold themselves responsible to the overall contractor and be subject to the administration of the overall contractor concerning safe operation at construction sites.

Article 46 Construction enterprises shall establish a sound system of education and training in safe operation, strengthen the education and training of their staff members in safe operation.  Those without receiving a training in safe operation are prohibited from going on duty.

Article 47 In the course of construction operation, construction enterprises and working personnel shall observe laws and regulations concerning safe operation as well as safety rules of the construction industry.  They shall not command or operate in violation of relevant regulations.  Working personnel are entitled to forward proposals for improving the operating programs and conditions which adversely affect health and to obtain protective equipment as required for safe operation. They are entitled to criticize, report and accuse of actions endangering vital safety and personal health.

Article 48 Construction enterprises must give accident and casualty insurance to workers engaged in dangerous operations and pay insurance premium for them.

Article 49 As to a decoration project involving the change of the main part and bearing structure of the building, the unit undertaking the project shall entrust the original designing institution or other designing institutions of equivalent capability with the responsibility for drawing up the design scheme before the start of construction operation. The project shall not be started without a design scheme.

Article 50 Demolition shall be taken by the construction enterprises being able to ensure safety. The heads of those enterprises are responsible for safety.

Article 51 If an accident occurred in the course of construction operation, construction enterprises shall take emergency measures to reduce casualties and losses resulting from the accident and immediately report to the departments concerned in accordance with relevant state regulations.

CHAPTER VI MANAGEMENT OF CONSTRUCTION PROJECT QUALITY

Article 52 The survey, design and construction of a project must meet the requirement of relevant state safety standards on construction projects.  The specific administrative measures shall be stipulated by the State Council.

The state safety standards on construction projects which can not ensure the safety of buildings shall be amended without delay.

Article 53 The state shall establish the quality certification system for units engaged in construction. On a voluntary basis, units engaged in construction may, when applying for quality certification, submit their applications to the certification institutions approved by the product quality control departments under the State Council and by other departments authorized by the product quality control departments under the State Council. If certified, the units engaged in construction shall be granted with Quality Certificates by the certification institutions.

Article 54 Units which are undertaking projects shall not, with any excuse, demand designing institutions or construction enterprises to act in violation of laws, administrative regulations and quality and safety standards on construction projects and lower the quality of projects in the course of design and construction operation.

Designing institutions or construction enterprises shall reject the requests from owner for lowering the quality of projects in violation of the stipulations of previous articles.

Article 55 As to a construction project under an overall contract, the overall contractor is responsible for the quality of the project. If the overall contractor jobbed out to subcontractors, the overall contractor should assume responsibility with subcontractors for the quality of projects under subcontracts. Subcontractors shall subject themselves to the quality control of the overall contractor.

Article 56 Survey and designing institutions shall be responsible for the survey and design quality of construction projects.  Survey and designing documents shall conform to the stipulations of relevant laws and administrative regulations, quality and safety standards on construction projects, survey and design technical codes on construction projects and contracted terms. The specification, model, function and other specifications of construction materials, structural parts, construction fittings and equipment chosen in design documents shall be specified in detail. Their quality must meet the standards set by the state.

Article 57 Designing institutions shall not designate manufacturers and suppliers of construction materials, structural parts, construction fittings and equipment chosen in design documents.

Article 58 Construction enterprises are responsible for the quality of construction projects.

Construction enterprises must carry out construction operation in accordance with design drawings of projects and construction technical standards, and shall not cheat on work and materials.  The original designing institution shall bear the responsibility for altering the design of projects. Construction enterprises shall not alter the design of projects without authorization.

Article 59 Construction enterprises shall examine the quality of construction materials, structural parts, construction fittings and equipment in accordance with the requirement of the design of projects, construction technical standards and contracted terms. Those proved not up to the standards shall not be put into use.

Article 60 Within normal service life time of buildings, the quality of foundations and main parts of buildings shall be guaranteed.

Upon the completion of construction projects, there shall not be leakage, cracking and other defects left on roofs and walls.  Construction enterprises shall repair the defects having been found out.

Article 61 Construction projects having been completed and accepted through examination shall meet the stipulated quality standards on construction projects, have complete technical and economic data of projects and warranties issued by builders, and satisfy other requirements set out by the state for the completion of construction projects.

Only after a completed construction project is proved to meet the standards through examination can it be delivered for use.  Construction projects having not been examined and accepted or having failed in examination shall not be delivered for use.

Article 62 The system of the warranty of quality shall be established for construction projects.

The scope of warranties on construction projects covers foundations, main parts, the leak prevention of roof covering and other building projects as well as the installation of electric wires and gas, water supply and drainage pipes, and heating and air-conditioning systems. The time frames of warranties shall be determined in accordance with the principle of ensuring the regular use of buildings within normal service life time and safeguarding users' legitimate rights and interests.  The specific scope and minimum time frame of warranties shall be stipulated by the State Council.

Article 63 Any unit and individual are entitled to report, accuse of and complain about the quality accidents and defects of construction projects to administrative authorities on construction and other departments concerned.

CHAPTER VII LEGAL RESPONSIBILITIES

Article 64 Construction enterprises, which act in violation of the stipulations of this Law to start construction operation without construction permit or at the time when the application for construction operation has not yet been approved, shall be ordered to correct themselves. Construction enterprises of which construction projects can not meet the requirement for starting operation shall be ordered to stop construction operation and may be imposed fine penalties.

Article 65 A contract awarder who contracts projects to unqualified contractors or contract projects by dividing the projects into different parts in violation of the stipulations of this Law shall be ordered to correct himself and shall be imposed fine penalties.

An organization which exceeds its level of qualification to contract projects shall be ordered to stop the illegal activities and imposed fine penalties, and can be ordered to stop business operations for rectification, with its qualification level reduced.  An organization found to have serious violations shall be revoked business license, with all its illegal incomes confiscated.

An organization which contracts projects without a certificate of qualification shall be outlawed and imposed fine penalties, with all its illegal incomes confiscated.

An organization which has obtained a certificate of qualification through cheating shall be revoked the certificate and imposed fine penalties, and shall be prosecuted for criminal liabilities according to law for any crimes committed.

Article 66 A construction enterprise which transfers or lends its certificate of qualification to others or which allows others to contract projects in its name shall be ordered to correct itself and imposed fine penalties, with all illegal incomes confiscated.  It can also be ordered to stop business operations and to have its level of qualification reduced. An enterprise found to have serious violations shall be revoked the certificate of qualification.  The construction enterprise and the organization or individual which has used the name of the construction enterprise shall assume the associated liabilities for losses incurred from the sub-par quality of the contracted project.

Article 67 A project contractor which subcontracts the contracted project in violation of the stipulations of this Law shall be ordered to correct the situation, imposed fine penalties, have all illegal incomes confiscated, and can be ordered to stop business operations and lower the level of qualification.  A contractor found to have serious violations shall be revoked the certificate of qualification.

The contractor which has violated the above clause and the subcontractor shall assume the associate liabilities for the losses incurred from the sub-par quality of the project due to subcontracting.

Article 68 Acts of asking for bribes, taking bribes and offering bribes in the course of contract awarding and project contracting which have committed crimes shall be prosecuted for criminal liabilities. Those who have not committed crimes shall be imposed fine penalties respectively and have the bribes confiscated. The people in direct charge and the people directly involved in the acts shall be imposed punishment.

A contractor who offers bribes in project contracting shall be ordered to stop business operations for rectification, have the level of qualification reduced or shall be revoked the certificate of qualification in addition to the punishment provided for in the previous clause.

Article 69 A project supervisory organization which collides with the project undertaker or the construction enterprise to practice fraud and lower the quality of the project shall be ordered to correct the situation, imposed fine penalties, shall have the level of qualification reduced or be revoked the certificate of qualification, with all illegal incomes confiscated. Where losses are incurred, the organization shall assume associated liabilities for compensation. And the organization found to have committed crimes shall be prosecuted for criminal liabilities according to law.

A project supervisory organization which transfers the business operation of project supervision shall be ordered to correct the situation, shall have all illegal incomes confiscated, and can be ordered to stop business operations for rectification and have its level of qualification reduced.  An organization found to have serious violations shall be revoked the certificate of qualification.

Article 70 An organization which violates the stipulations of this Law to undertake decoration project by changing the major structure or load- bearing structure of the building shall be ordered to correct the situation and imposed fine penalties; shall assume liabilities of compensation for losses incurred thereof; and shall be prosecuted for criminal liabilities according to law for any crimes committed.

Article 71 A construction enterprise which does not adopt necessary measures to eliminate potential dangers of accidents in violation of the stipulations of this Law shall be ordered to correct itself and can be imposed fine penalties.  A construction enterprise with serious violations shall be ordered to stop business operations for rectification, have its level of qualification reduced or shall be revoked the certificate of qualification, and shall be prosecuted for criminal liabilities according to law for any crimes committed.

The management of a construction enterprise who gives directions in violation of regulations and forces workers to take risks in performing operations shall be prosecuted for criminal liabilities for major casualties or other serious consequences.

Article 72 A project undertaker which violates the stipulations of this Law to request the project designer and the construction enterprise to alleviate from quality and safety standards so as to lower construction quality shall be ordered to correct the situation, can be imposed fine penalties, and shall be prosecuted for criminal liabilities according to law for any crimes committed.

Article 73 A project designer which does not abide by quality and safety standards in designing projects shall be ordered to correct itself and imposed fine penalties. Where major quality accidents are incurred, the designer shall be ordered to stop business operations for rectification, shall have its level of qualification reduced or shall be revoked the certificate of qualification and imposed fine penalties, with all illegal incomes confiscated. The designer shall assume liabilities of compensation for losses incurred thereof, and shall be prosecuted for criminal liabilities according to law for any crimes committed.

Article 74 A construction enterprise which has been found to have scamped work and used inferior materials, unqualified construction materials, parts and components and equipment or have other acts inconsistent with the blueprints or technical standards shall be ordered to correct itself and imposed fine penalties. An enterprise found to have serious violations shall be ordered to stop business operations for rectification, shall have its level of qualification reduced or shall be revoked the certificate of qualification. Where construction quality is found lower than the stipulated quality standards, the said enterprise shall be responsible for the reconstruction and repair, shall compensate the losses incurred thereof and shall be prosecuted for criminal liabilities according to law for any crimes committed.

Article 75 A construction enterprise which does not perform its obligations pertaining to maintenance or default on these obligations in violation of the stipulations of this Law shall be ordered to correct itself, can be imposed find penalties and shall assume the liabilities of compensation for losses incurred from quality defects such as ceiling or wall leaking and cracks during the term of maintenance.

Article 76 The administrative punishment provided for in the stipulations of this Law like forced stoppage of business operations for rectification, lowering of the level of qualification and revocation of the certificate of qualification shall be decided by the issuing authority of the certificate of qualification.  Other administrative punishment shall be decided by competent authorities of construction or relevant authorities based on the purview provided for in the law or authorized by the State Council.

Administrative authorities of industry and commerce shall revoke business licenses of those enterprises whose certificates of qualification have been revoked in accordance with the stipulations of this Law.

Article 77 Certificates of qualification issued to unqualified organizations in violation of the stipulations of this Law shall be ordered by the superior administrative authority for revocation of the certificates issued.  People in direct charge and people directly involved shall be imposed administrative punishment and criminal liabilities shall be prosecuted according to law for any crimes committed.

Article 78 Employees of government agencies or their subordinate authorities who violate the stipulations of this Law to direct contract awarders to contract the bidding project to designated contractors shall be ordered by superior authorities to correct themselves and shall be prosecuted for criminal liabilities according to law for any crimes committed.

Article 79 Authorities responsible for the issuance of construction permits and their employees who issue construction permits to unqualified construction projects and authorities responsible for the supervision and inspection of project quality or acceptance test and their employees who issue documents of qualification to unqualified projects or accept unqualified projects as qualified ones shall be ordered by superior authorities to correct themselves. People directly involved shall be imposed administrative punishment and shall be prosecuted for criminal liabilities according to law for any crimes committed.  Liabilities of compensation shall be assumed by the authorities concerned for any losses incurred thereof.

Article 80 People suffering from inferior construction quality during the reasonable life span of the buildings are entitled to compensation from people responsible for the damages.

Article 81 Stipulations of this Law pertinent to construction permit, examination of the qualification of construction enterprises, awarding, contracting and ban on subcontracting of construction projects as well as supervision, safety and quality management of the construction projects shall be applicable to the construction of other special projects, with details formulated by the State Council.

Article 82 Apart from charges provided for in relevant regulations of the State Council, competent authorities responsible for construction and other relevant authorities shall not collect other fees while exercising supervision over construction activities.

Article 83 Construction activities of small-sized buildings designated by the people's governments of provinces, autonomous regions and municipalities shall be carried out based on the stipulations of this Law mutatis mutandis.

Renovation of memorials and ancient buildings certified by law as cultural relics for protection shall be carried out in accordance with relevant laws of protection of cultural relics.

The stipulations of this Law are not applicable to buildings erected for risk and disaster relief, other buildings for provisional use and low- stored residential buildings constructed by farmers for their own use.

Article 84 Specific regulations for the administration of construction of buildings for military use shall be formulated by the State Council and the Military Committee of the Central Party Committee in accordance with the stipulations of this Law.

(This English version is for your reference only.In case any discrepancy exists between the Chinese and English context, the Chinese version shall prevail.)

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