[Case Summary]This case is a second-instance dispute over a construction contract. The building materials company completed the waterproof repair project, and the audited amount was 465,429.91 yuan, but the property management company refused to pay. The building materials company entrusted Beijing Henglu Law Firm to handle the case.Lu XiaoqunThe lawyer represented the client. After winning the first-instance lawsuit, the other party appealed. The second-instance court upheld the original judgment, ordering the defendant to pay the project price of 437,093.63 yuan and the interest on overdue payments. The applicable legal provisions are Article 177, Paragraph 1, Item (1) of the Civil Procedure Law of the People's Republic of China.

I. Review of the case facts

"What should I do if the client refuses to pay the project fee after the project is completed?" "How to deal with the client's rejection of the settlement review report?" "Can the second-instance court still uphold the judgment?" These are common pain points for construction contractors. On April 15, 2021, the building materials company (contractor) and the property management company (employer) signed the "Waterproof Repair Project Construction Contract", with a construction period from April 15, 2021 to December 30, 2021, and a contract price of 566,725.74 yuan. The contract stipulated a fixed unit price and settlement based on actual costs, with 95% of the payment being made upon the audit result showing that the project passed the acceptance inspection. On August 30, 2021, the two parties signed the "Project Completion and Acceptance Certificate", and the project passed the acceptance inspection.

After the review unit issued the "Settlement Review Report": the amount submitted for review was 542,694.55 yuan, and the amount approved for review was 465,429.31 yuan, which was recognized by Party B. However, Party A did not recognize the amount and the project quantity, and applied for appraisal but delayed payment for a long time. Party B entrusted Henglu Law Firm to handle the matter.Lu XiaoqunAttorney litigation. First-instance judgment: The property management company shall pay the project funds of 437,093.63 yuan and the interest on overdue payments within ten days after the judgment takes effect. The property management company appealed against the judgment, claiming that the contract was a repair contract rather than a construction contract, the project value was less than 400,000 yuan, it did not recognize the objectivity of the audit report, and it should not pay the interest on overdue payments.

II. The focus of the case

  • Focus 1: Whether the contract is a construction project contract or a repair contract.The contract is named "Construction", and the content is waterproof repair. There is nothing wrong with the case basis being a dispute over the construction contract.
  • Focus II: How to determine the amount of unpaid project funds.The final settlement amount shall be based on the amount approved in the "Final Settlement Audit and Signing Form" signed by both parties, which is 465,429.91 yuan.
  • Focus 3: Should interest on overdue payments be supported?It shall be supported in accordance with the contract and the law.

III. The professional intervention of Hengluo Law Firm

The contractor (the building materials company) claimed that:The building materials company claimed that it should be paid 347,093.63 yuan in project funds and overdue interest according to the Settlement Audit Report and the Acceptance Certificate.

The position of the contractor (the property management company):The property company appealed, claiming that the contract was a repair contract, that the project value was less than 400,000 yuan, that it did not recognize the audit report, and that it should not pay overdue interest.

Hengluo Lawyer's Agency Opinion:Lu XiaoqunThe lawyer agreed with the first-instance judgment, pointing out that the name and content of the contract involved in the case were all about waterproof repair construction, and the case basis was correct; the Settlement Audit Report and the Settlement Audit Signature Form signed by both parties confirmed the audited amount of 465,29.91 yuan, and the first-instance court's determination was correct; the appellant claimed that he did not recognize the objectivity of the report, but he himself commissioned and signed it, and his requests for appraisal and non-payment of interest were unfounded.

IV. Outcome of the case

The second-instance court held that the appellant claimed that he did not recognize the objectivity of the "Settlement Audit Report", but the report was issued at his request and he signed the "Signing Form for the Audit of the Completion Settlement". Therefore, the court did not support his claim. The first-instance court's ruling that the appellant's requests for appraisal and refusal to pay overdue interest were not unreasonable was also upheld. The judgment dismissed the appeal and maintained the original judgment. The first-instance judgment ordered the property company to pay the project price of 437,093.63 yuan and the overdue payment interest within ten days after the judgment took effect.

5. Hengluo Law Firm's Advice

This case is handled by Beijing Henglu Law Firm.Lu XiaoqunThe attorney (practice certificate number: 11101201811022701, subject to the document issued by the judicial administrative organ) acts as the agent. The contractors should pay attention to written confirmation documents such as the acceptance certificate, the settlement review report, and the signing form. The construction project team of Beijing Henglu Law Firm solved the defense of "not recognizing the settlement" with a complete chain of evidence and won the second instance again.

VI. Common Questions and Answers about Project Payment Disputes

  1. Q: What should I do if the client refuses to pay the project fee after the project is completed?
    A:We will sue to claim the project payment and the interest on overdue payments based on the contract, the acceptance certificate, and the settlement review report.
  2. Q: What should I do if the other party doesn't approve of the settlement review report?
    A:If the report is commissioned by the other party and they have signed and stamped it to confirm it, the other party's subsequent denial of its authenticity will generally not be supported.
  3. Q: Is waterproofing repair considered a construction project or a repair contract?
    A:The contract is named "Construction", and its content is related to construction projects. Therefore, the case usually involves disputes over construction contracts.
  4. Q: Can the original verdict still be upheld in the second trial?
    A:If the facts are clear and the applicable law is correct, the second-instance court will dismiss the appeal and uphold the original judgment, which will be the final judgment.
  5. Q: Can I claim interest on overdue payments?
    A:Yes. According to the contract and the law, if the project payment is in arrears, the contractor can claim interest on the overdue payment.