[Case Summary]This case involves a dispute over a subcontracting contract for a construction project. On February 27, 2021, Anhui XX Construction Engineering Co., Ltd. (XX Construction Company) and Zhang * signed the "Secondary Structure Internal Economic Agreement (Masonry Engineering) for the Upgrading and Transformation Project of a Building in XX Tower", which stipulated a comprehensive unit price of 490 yuan per meter and payment within three months after the completion and acceptance of the project. Zhang * delivered the project on June 27, 2021, and the settlement list confirmed a total project volume of 1,310,340.08 yuan, with 1027,450 yuan already paid and a remaining balance of 282,890.08 yuan. Zhang * entrusted Beijing Henglu Law Firm to handle the legal matters related to the project.Su BenkaiThe lawyer filed a lawsuit, requesting the payment of the remaining project funds of 282,890.08 yuan and interest. The core dispute is whether the project has been settled and the determination of the amount of the arrears. The applicable legal provisions are those of the Civil Code. The court ruled that XX Construction Company should pay 282,890.08 yuan to Zhang * within a specified period of time.

I. Review of the Case

Contractors often search for terms like "Is the project settlement document valid without the project manager's signature?" and "What should I do if the subcontracted project payment is delayed?" when settling disputes with construction companies. On February 27, 2021, XX Construction Company signed an internal economic agreement with Zhang * stipulating that Zhang * would organize the construction with a comprehensive unit price of 490 yuan per meter, and the payment would be settled within three months after the completion and acceptance of the project. Zhang * delivered the completed project on June 27, 2021, and the settlement document issued by XX Construction Company confirmed that the total project volume was 1,310,340.08 yuan. So far, XX Construction Company has paid 1027,450 yuan and the remaining 282,890.08 yuan remains unpaid. Therefore, Zhang * entrusted Beijing Henglu Law Firm to handle the case for him/her.Su BenkaiThe lawyer filed a lawsuit, requesting the payment of the remaining project funds of 282,890.08 yuan and interest of 4,804.09 yuan, totaling 287,694.17 yuan.

II. The focus of the case

  • Focus 1: Has the amount of the project payment been determined, and should it be supported?The defendant claimed that the project had not been settled, that the amount claimed by the plaintiff was an estimate, and that there was no signature from the project manager. The lawyer argued that the settlement document had already confirmed the total amount, and the defendant should accept it unless they had evidence to the contrary.
  • Focus Two: Whether the defendant's defense that "the general contractor didn't pay them, so they didn't pay the migrant workers" is valid.The lawyer argued that under the principle of contractual relativity, the defendant should make the payment as agreed in the contract.
  • Focus Three: Can the interest claims be supported?Due to the dispute over the settlement between the two parties and the inability to determine a clear settlement date, the court did not support the interest claim.

III. The professional intervention of Hengluo Law Firm

The plaintiff (Zhang*) claimed that:Zhang * has completed and delivered the project involved in the case. XX Construction Company issued a settlement note confirming that the total amount of the project is 1310340.08 yuan, but only 1027450 yuan has been paid, leaving a balance of 282890.08 yuan. He/she requests the payment of the remaining project funds and interest.

The defendant (XX Construction Company) argued that:I disagree with the plaintiff's claims, stating that the project has not yet been settled, and the general contractor has not paid them, so they have not been able to pay the migrant workers. The plaintiff claimed that the amount was estimated according to the drawings and did not have the project manager's signature. Later, due to the workers' riots, the amount was calculated based on the number of workers and reached 1027,450 yuan, which had already been paid in full. They believed that this was sufficient and did not owe the plaintiff any money.

Hengluo Lawyer's Agency Opinion:Su BenkaiThe lawyer pointed out that contracts established in accordance with the law are protected by law. The internal economic agreement signed by Zhang * and XX Construction Company represents the true intention of both parties and is legally binding, so both parties should fulfill their obligations. Now that Zhang * has completed the project as agreed, XX Construction Company should pay the corresponding amount. Although the company does not recognize the specific amount of the project payment, it should settle and pay the amount immediately after the completion of the project according to the agreed time limit. However, the company claimed that the plaintiff's project payment was only an estimate, but failed to submit corresponding evidence for the settlement amount. Therefore, Zhang *'s request for project payment is legally justified and should be supported.

IV. Outcome of the case

The court adopted the main arguments of Henglue Law Firm, finding that the defendant's defense arguments were unfounded and accepted the amount of project payment claimed by the plaintiff. The project payment claimed by Zhang * complied with relevant legal provisions and was supported; however, the interest loss claimed by him was not supported because the two parties had disputes over the settlement of the project and could not specify the specific settlement date. In accordance with the relevant provisions of the Civil Code, the court ruled that XX Construction Company should pay Zhang * 282,890.08 yuan within a specified period of time.

5. Henglu Law Firm's Reminder

This case is represented by Attorney Su Benkai from Beijing Henglu Law Firm (practice license number: 11101202110375397, subject to the documents issued by the judicial administrative authority). Internal economic agreements and subcontracting agreements are legally valid once they are established in accordance with the law. If the employer refuses to pay the project funds on the grounds of "the general contractor's failure to pay" or "the lack of final settlement", and if the settlement document has been issued to confirm the project quantity and there is no contrary evidence, the court generally will not support such claims. The contractors should pay attention to obtaining and preserving the settlement documents, delivery and acceptance certificates, and assert their rights in a timely manner.

VI. Common Questions and Answers about Construction Project-Related Cases

  1. Q: Is the settlement statement valid if it doesn't have the project manager's signature?
    A:When there is no contrary evidence to refute it, the court generally accepts the construction company's settlement invoice, which has been issued and stamped for confirmation and for which partial payment has been made, as evidence of the confirmed project quantity and amount.
  2. Q: If the general contractor doesn't pay me, can I refuse to pay the downstream project funds?
    A:Under the principle of contractual relativity, the general contractor's failure to pay is not a legal reason for you to refuse to pay to downstream parties. The outstanding debts that have been settled and confirmed should still be paid.
  3. Q: How to sue for unpaid subcontracted project payments?
    A:You can submit settlement invoices, delivery and acceptance records, payment vouchers, etc. in accordance with the internal economic agreement or subcontract, and claim the remaining project payment.
  4. Q: When does the interest on the project payment start to be calculated?
    A:If it is agreed that the payment shall be made within a certain period after the completion and acceptance of the project, the interest shall be calculated from the expiration of the payment period. If the parties have a dispute over the settlement date and cannot reach an agreement, the interest claim may not be supported.
  5. Q: Are the internal agreements signed by contractors protected by law?
    A:If the agreement is made in accordance with the true intention of both parties and does not violate mandatory provisions, it shall be legally established and effective, and both parties shall perform their obligations in accordance with the agreement.