[Case Summary]This case involves a dispute over a subcontracting contract for a construction project. C Investment Company, as the employer, awarded the mechanical and electrical engineering project of L Hotel to B Company (with a contract price of 35.8 million yuan). B Company signed a labor subcontracting contract (with a fixed total price of 3.1 million yuan) and a supplementary agreement (with a price of 390,000 yuan) with A Company. Due to the collapse of the capital chain of the owner, C Company, the project was completely suspended in 2021. B Company only paid 1,757,025.56 yuan to A Company. A Company entrusted Beijing Henglu Law Firm to handle the case.Li YonghuiThe lawyer sued Company B and Company C, claiming that they owed a total of 1,734,968.06 yuan in project payments and interest, and that Company C should bear responsibility within the scope of the outstanding payments. The court fully supported our claims. The core disputes include: the fulfillment of the payment conditions, the amount of the payable, and the responsible parties. Applicable laws: relevant provisions of the Civil Code and the Civil Procedure Law.

I. Review of the case facts

When a contractor fails to receive payment for a project, they often search for terms like "How to sue for unpaid project funds," "What to do if the employer suspends work due to unfulfilled payment conditions," "Judicial appraisal of project funds in construction projects," and "Beijing construction project lawyers." On August 15, 2019, C Investment Co., Ltd., as the employer, awarded the electrical and mechanical supply and installation project of Building LCAY-G1 (L Hotel) to the contractor, Beijing B Energy-saving Engineering Co., Ltd., with a contract price of 35.8 million yuan. On September 10 of the same year, B Company signed a "Subcontracting Contract for Engineering Labor Services" with A Company, subcontracting ventilation and air conditioning services to A Company with a fixed total price of 3.1 million yuan; on November 19, 2020, they signed a supplementary agreement, stipulating the purchase and installation of auxiliary materials for the steel structure platform of the air conditioning unit's interlayer, with a fixed total price of 390,000 yuan.

During the performance of the contract, Company A carried out the construction according to the agreement and completed the additional work outside the contract, which was confirmed by the visa. However, due to the funding chain breakdown of the owner, Company C, the project has been completely halted since 2021 and has been idle for four years. Prior to the lawsuit, Company B only paid 1,757,025.56 yuan, and the remaining payment has been delayed for a long time. Company A entrustedLi YonghuiThe lawyer sued Companies B and C in court, requesting that Company B be ordered to pay the project funds of 1,734,968.06 yuan and interest, and that Company C assume the responsibility of making supplementary payments within the scope of the unpaid project funds owed to Company B.

II. The focus of the case

  • Focus 1: Whether the project payment meets the payment conditions.Is the defendant's defense that the six conditions, including completion acceptance, settlement, and invoicing, have not been fulfilled valid?
  • Focus 2: Determining the amount of accounts payable.Should the incremental projects outside the contract be supported, and how should the amount of the arrears be determined?
  • Focus 3: Responsible parties and appraisal.Should Company C be held liable within the scope of the unpaid amount, and how should the project cost appraisal be taken into account?

III. The professional intervention of Hengluo Law Firm

The plaintiff (Company A) alleges that:Company A claims that Company B should pay the outstanding project payment of 1,734,968.06 yuan and interest, and Company C should bear supplementary liability within the scope of the outstanding project payment to Company B. The appraisal fees and litigation fees shall be borne by Company B.

The defendant argued that:B Company argued that the payment conditions had not been fulfilled, that it had no right to claim for the incremental amount outside the contract, that the interest claim was unfounded, and that the contract was invalid; C Company contended that it was not a qualified party and requested that the claim against it be dismissed.

Legal opinion of Hengluo Law Firm:Li YonghuiThe lawyer formulated a clear litigation strategy: focusing on the core fact of "the employer's reason for suspending the work", emphasizing that the root cause of the suspension of work lies in the lack of funds from the owner company C, and the adverse consequences should not be attributed to the contractors who have already completed the work; comprehensively sorting out the fixed completed and incremental evidence (the "Engineering Quantity Visa Form" and the "Confirmation Form for Additional Content Outside the Contract" signed by the project manager); actively fulfilling the obligations of invoicing and submitting settlement materials, and counter-proving the other party's negligence in settlement; accurately applying for judicial appraisal, taking the "Engineering Cost Appraisal Opinion" as the core basis for determining the arrears; and clarifying that A Company's contractual counterparty is B Company, and B Company should pay the project funds and overdue interest for its breach of contract.

IV. Outcome of the case

After the trial, the court supported our main claims: regarding the payment conditions, the project suspension was due to the owner's funding issues, and A Company was not responsible for it. If restricting A Company's rights would be unfair, the court determined that the conditions for payment of the project funds had been met; regarding the amount, the court determined the amount of unpaid project funds based on the signing of the contract and the "Engineering Cost Appraisal Opinion"; regarding liability, C Company shall bear corresponding liability within the scope of the unpaid project funds owed to B Company. In the final judgment, B Company was ordered to pay A Company the unpaid project funds of 1,734,968.06 yuan and interest, and to bear the appraisal fees and litigation fees.

5. Henglu Law Firm's Advice

This case is handled by Beijing Henglu Law FirmLi YonghuiThe lawyer (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent. Construction project disputes are highly specialized, and the contractors should pay attention to the performance evidence such as visas, settlement materials, and invoices. If the owner suspends the work and causes disputes over payment conditions, the contractors should promptly entrust lawyers to recover the project payments through judicial appraisal and legal argumentation.

VI. Common Questions and Answers about Construction Project Cases

  1. Q:Can the project funds still be claimed if the construction is halted due to the owner's reasons?
    A:Yes. If the contractor is unable to complete the project and conduct the acceptance due to the employer's funding issues, the adverse consequences of the unfulfilled conditions should not be attributed to the contractor who has actually carried out the construction. The contractor may claim that the payment conditions have been fulfilled.
  2. Q:How to prove the incremental work outside the contract?
    A:The signed and confirmed documents, such as the fixed engineering quantity visa form and the confirmation form for added content, shall be used as the basis for calculating the additional price.
  3. Q:What should I do if there's a dispute over the amount of the project payment?
    A:You can apply for a judicial appraisal of the project cost according to law, and use the appraisal opinion as the core basis for the court to determine the amount of the arrears.
  4. Q:What is the scope of the contractor's liability?
    A:The employer shall bear corresponding liability to the actual constructor within the scope of the unpaid project funds, and the specific liability shall be determined based on the verified amount of unpaid funds.
  5. Q:How should I deal with the other party refusing to pay due to unresolved issues?
    A:It can be proven that the party has actively submitted settlement materials, but the other party has neglected to settle the payment, and has applied for an appraisal to determine the amount payable, thereby breaking the defense of refusal to pay.