[Direct answer]In the Beijing area, in principle, the party proposing the change, that is, the employer, shall bear the responsibility. According to the "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Disputes over Construction Contracts", if the increase or decrease in the amount of work results from design changes or other reasons, the project price may be adjusted in accordance with the contract; if there is no agreement or the agreement is unclear in the contract, the settlement may be conducted in accordance with the pricing methods or standards issued by the local construction administrative department at the time of signing the contract. That is to say, as long as the change is ordered by the employer or confirmed by the employer, the additional cost shall be borne by the employer. Action guidance: For each design change, timely handle the written confirmation and pricing to avoid having no evidence afterwards.
1. Problem background and typical scenarios
During the construction process, it's common for the employer to adjust the design, add content, or raise standards, but who should bear the resulting costs often leads to disputes during settlement. Typical scenarios include: the employer verbally requesting to increase the project scope, and the contractor complying with the request, only for the employer to claim that "it's included in the lump-sum contract" during settlement; or changes made without written confirmation, with both parties disagreeing on the project scope and unit prices. The key to adjusting the project price lies in the basis and procedures involved.
II. Key points of contention
Firstly, the subject and form of the change order; Secondly, the pricing method of the changed price; Thirdly, the boundary between the change and the lump-sum scope in the contract; Fourthly, whether the changes without written confirmation can be claimed. The core lies in whether the fact of the change is established and whether the pricing basis is clear.
III. Professional analysis by Henglue Lawyers
The experience of Henglue in handling construction project cases is that the claim for changes should follow the principle of "first establishing the facts, then calculating the price". Firstly, design changes are usually issued by the employer, the design unit or the supervisor in accordance with procedures, and the contractor shall carry out the construction according to the instructions. The establishment of the fact of the change depends on whether there are written basis such as change orders, design change forms, meeting minutes or supervisor's notices. Secondly, the determination of the price shall firstly apply the change pricing clauses stipulated in the contract; if there is no stipulation or the stipulation is unclear in the contract, the settlement may refer to the pricing methods or standards issued by the local construction administrative department at the time of signing the contract. Thirdly, it is necessary to distinguish between "changes" and "the scope of the original contract": if the added content is within the risk scope or the scope of the lump sum in the contract, the contractor will have difficulty claiming additional compensation; only when the increase or decrease exceeds the agreed scope can the contractor request adjustment. In practice, the common mistakes of contractors are to carry out the construction only based on oral instructions, lacking written basis afterwards, which makes it difficult to prove the fact of the change; there are also cases that although the contractors have obtained the change orders, they have not specified the pricing method and unit price, and there are still disputes over the settlement. Therefore, it is recommended to achieve the "three timeliness" for each change: timely obtaining written instructions, timely handling the change orders for confirmation, and timely clarifying the pricing method. When the Beijing area court tries such cases, it usually determines the change price based on the change orders, the change orders and the contract stipulations; the party with complete evidence usually has an advantage. It should be noted that if the parties sign a supplementary agreement or a settlement agreement after the change, the new stipulations shall prevail. In addition, design changes caused by the employer's reasons may also involve the extension of the construction period and the losses caused by the suspension of work, so it is advisable to claim them together. 恒略处理建设工程案件的经验是,变更索赔“先定事实、再算价款”。首先,设计变更通常由发包人、设计单位或监理按照程序发出施工单位应按指令施工;变更事实的成立,取决于是否有变更指令、设计变更单、会议纪要或监理通知等书面依据。其次,价款的确定优先适用合同约定的变更计价条款;合同没有约定或约定不明的,可参照签订合同时当地建设行政主管部门发布的计价方法或计价标准结算。再次,要注意区分“变更”与“原合同包干范围”:若增加的内容本就在合同约定的风险范围或包干范围内,施工单位难以另行主张;只有超出约定范围的增减,才可要求调整。实务中,施工单位常见的失误是仅凭口头指令施工,事后缺乏书面依据,导致变更事实难以证明;也有的是虽然办了签证,却未明确计价方式与单价,结算时仍在扯皮。因此,建议对每一项变更做到“三及时”:及时取得书面指令、及时办理签证确认、及时明确计价方式。北京地区法院审理此类案件时,通常围绕变更指令、签证与合同约定认定变更价款;证据齐备的一方通常更占优势。需要提示的是,如果变更后双方另行签订补充协议或结算协议,一般以新约定为准。此外,因发包人原因导致的设计变更还可能涉及工期顺延与停工损失,宜一并主张。
IV. Practical suggestions and legal basis
The first step is to obtain written documents of design changes or instructions from the employer before construction; the second step is to handle change orders in a timely manner, clarifying the project scope, unit price, and pricing method; the third step is to verify whether the change content exceeds the scope of the contract; the fourth step is to settle accounts according to the agreed pricing method. If no agreement can be reached, the matter shall be resolved through litigation or appraisal, and the contractor shall also claim for the extension of the construction period and compensation for losses. The main legal basis is: "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Construction Contract Disputes" (effective January 1, 2021), and the provisions on construction contracts in the Contract Chapter of the Civil Code of the People's Republic of China. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Reminder
There's no harm in making many changes, but what really matters is having proper documentation. Orders must be in writing, visas must be issued in a timely manner, and pricing must be clearly stated. If these three things are done, the cost increase can be accounted for accurately. For matters related to the settlement of construction projects, you can go through the following process:Real estate transactions and construction projectsObtain a comprehensive solution for the service; those involving contracts and commercial disputes can be combined togetherBusiness and contract disputes in enterprisesPlate; for reference on the enforcement of project payments, please refer to the following content.Creditor's rights and debts, and enforcementFor matters related to corporate law, please feel free to consult us.Intellectual property protection and corporate lawOther difficult issues can be resolved throughSpecial servicesDocking.
VI. Frequently Asked Questions
Q1: If the contractor verbally requests to add work to the project, who will bear the cost?
In principle, the employer shall bear the responsibility, but it is difficult to prove verbal instructions. It is necessary to obtain written confirmation or approval as much as possible, and to provide supporting evidence such as meeting minutes, letters, supervision records, and images to prove the fact of the change, so as to claim the corresponding price in the settlement.
Q2: What evidence is required to request a change in the price?
It is necessary to prepare design change orders or change instructions, visa orders, drawings before and after the change with a comparison of the engineering quantities, meeting minutes and supervision notifications, records of material and labor inputs, and correspondence. The evidence should be able to simultaneously prove the facts of the change and the pricing basis.
Q3: How are the fees for settlement disputes calculated?
The litigation fees shall be paid in stages according to the amount of the subject matter; the appraisal fees shall be calculated separately for cases involving cost appraisal. The attorney's fees shall be agreed upon based on the complexity of the dispute and the workload. It is recommended to first check the contract amendment clauses and the completeness of the visas, and then decide whether to conduct an appraisal.
Q4: How long does it usually take to resolve disputes over price changes?
The first-instance ordinary procedure generally lasts six months, and the simplified procedure lasts three months; the time involved in appraisal will be extended. If the visa modification is complete and the pricing method is clear, and the scope of the dispute is small, it can be resolved quickly through negotiation or mediation.
Q5: If I haven't obtained a visa for the change, can I still apply for a new one?
You can try to arrange for a re-issuance. If the employer has actually received the results of the change or has carried out the construction according to the change, you can claim that the change is valid based on this; at the same time, supplement it with meeting minutes, letters, and images. It is recommended that you sign off on changes immediately in the future to avoid disputes arising afterwards.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limit. →Legal services for real estate transactions·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.