[Case Summary]This case involves a dispute over a construction contract. The construction company entrusted Ma * to carry out the decoration and renovation project, and owed him 5,376,038.18 yuan in settlement. Ma * entrusted Beijing Henglu Law Firm to handle the case.Li YonghuiThe lawyer represented the client and claimed that the construction company should pay the project funds and interest. The court determined that the settlement agreement was valid and that Zhang's signature was a duty-related act. The court ruled that the construction company should pay Ma the remaining project funds of 4,894,639.19 yuan and interest, and pay the decoration company 4,813,989.99 yuan and interest. Legal provisions applied: the Civil Code and relevant provisions of the Civil Procedure Law.

I. Review of the Case

"What should I do if the subcontractor's project payment is delayed by the general contractor?" "Can I recover the project payment without a formal contract?" "Is the signature of the project leader on the settlement agreement valid?" These are common problems faced by actual contractors. In 2015, Beijing XX Center awarded the 5th section of the decoration and renovation project to Construction Company. Construction Company assigned the indoor and outdoor strong electricity, weak electricity reservation, fence, and miscellaneous projects to Ma * (legal representative of the decoration company) for construction. Ma * completed the project and put it into use in 2017. According to the settlement, Construction Company should pay 10,191,038.18 yuan, but has only paid 4,815,000 yuan, leaving a balance of 5,376,038 yuan to be paid.

Ma * repeatedly demanded repayment but to no avail, so he entrusted our law firm to handle the matterLi YonghuiAttorney representation. The construction company argued that there was no formal contract between the two parties, that Zhang * was not the project manager in 2022, that the signature was invalid, that the evidence was all signed by individuals without official stamps, and that the statute of limitations had passed. The attorney pointed out that the construction contract signed by the construction company and the decoration company was valid, and the completion and acceptance documents showed that Zhang * was a representative and responsible person dispatched by the construction company. Ma *, as the legal representative of the decoration company, was an employee of the decoration company; the "Final Settlement Agreement for Labor Subcontracting" and the settlement summary table clearly recorded that Zhang *'s signature was a duty-related act that was binding on the construction company. The settlement was signed on August 2, 2022, and did not exceed the statute of limitations.

II. The focus of the case

  • Focus 1: Construction relationships and settlement effectiveness under the absence of formal contracts.The construction contract and settlement documents can prove and confirm the creditor's rights and debts.
  • Focus 2: Whether Zhang's signature constitutes an official act.He/She is the project manager assigned by the construction company and his/her signature is valid for the construction company.
  • Focus 3: Whether the statute of limitations has passed.The settlement agreement was signed on August 2, 2022, and the statute of limitations has not expired yet.

III. The professional intervention of Hengluo Law Firm

The actual constructor (Ma *) claimed that:Ma * claimed that the construction company should pay the outstanding project payment of 5,376,038.18 yuan and interest (calculated according to the LPR from August 2, 2022).

The position of the general contractor (construction company):The construction company argued that there was no formal contract, that Zhang was not the project manager, that the signature was not valid, that the evidence lacked the company's official stamp, and that the statute of limitations had passed, so it refused to pay the interest.

Hengluo Lawyer's Representation Opinion:Li YonghuiThe lawyer pointed out that the construction contract signed by the construction company and the decoration company is valid, and the completion and acceptance documents show that Zhang * is the dispatched representative and responsible person; the "Final Settlement Agreement for Labor Subcontracting" and the settlement summary table dated August 2, 2022 record that the construction project is related to the project in question, and the amount is clear. Zhang *'s signature as the responsible person constitutes a duty-related act that is binding on the construction company; the fact that there is still a debt of 5,376,038.18 yuan is clear, and the signing date of the settlement agreement does not exceed the statute of limitations for litigation.

IV. Outcome of the case

The court adopted the opinions and demands of Henglue Law Firm and, in accordance with the law, notified the Decoration Company to participate in the litigation as the plaintiff. The judgment is as follows: 1. The Construction Company shall pay the Decoration Company the remaining project payment of 481,398.99 yuan; 2. The Construction Company shall pay Ma * the remaining project payment of 4,894,639.19 yuan; 3. The Construction Company shall pay the Decoration Company interest (based on the amount of 481,398.99 yuan, calculated at the LPR rate starting from August 2, 2022); 4. The Construction Company shall pay Ma * interest (based on the amount of 4,894,639.19 yuan, calculated at the LPR rate starting from August 2, 2022).

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmLi YonghuiThe attorney (practice license number: 11101199611955812, subject to the certificate issued by the judicial administrative organ) acts as the agent. The actual constructor should pay attention to the settlement agreement and the evidence of the project manager's identity. Even without a formal contract, they can still claim the project payment. The construction engineering team of Beijing Henglu Law Firm uses the identification of official acts to solve the defense of "no contract, no official seal".

VI. Common Questions About Recovery of Project Payments - FAQ

  1. Q: What should I do if the subcontractor is owed money by the general contractor for the subcontracted project?
    A:Collect the construction contracts, settlement agreements, and acceptance documents, and sue to claim the project payment and interest based on the clear settlement amount.
  2. Q: Can I get back the project payment without a formal contract?
    A:Yes. The construction contracts, settlement agreements, and acceptance documents can form an evidence chain to confirm the creditor-debtor relationship.
  3. Q: Is it valid for the project leader to sign the settlement agreement?
    A:The project manager's signature within the scope of authorization constitutes an official act, and it is legally binding on the general contracting company.
  4. Q: How is the statute of limitations for engineering payment disputes calculated?
    A:From the date of signing the settlement agreement or the date when the payment is due, the signing of the settlement does not exceed the statute of limitations.
  5. Q: Can the actual constructor directly demand the project payment?
    A:Yes. Those who have actually completed the construction and settled the accounts can require the general contractor to pay the corresponding project funds and interest.