[Direct answer]In the Beijing area, it is usually possible to claim compensation, but the approach taken is discounted compensation. If the construction contract is invalid but the construction project has been accepted as qualified, the contractor may request discounted compensation in accordance with the contract's provisions on the project price; if the construction project has not been accepted as qualified, the matter will be handled differently depending on whether it is qualified after repair: if it is qualified after repair, the employer may request the contractor to bear the repair costs; if it is still not qualified after repair, the contractor's request for discounted compensation will generally not be supported. Therefore, the invalidity of the contract does not mean that the work has been done in vain, but it also cannot be settled in full according to the contract terms. The key lies in the proof of the project quality status, project quantity, and project price. In practice, the two parties often have disputes over the scope of "referring to the agreement" and the confirmation of the completed project quantity.

1. Problem background and typical scenarios

Defects in the validity of contracts in the construction engineering field are not uncommon: failure to obtain the corresponding qualifications, failure to tender for bids as required, and illegal subcontracting and splitting of contracts may all lead to the invalidity of contracts. What contractors worry most is whether the invalidity of the contract means that they won't get paid even after completing the work; while employers want to use the invalidity of the contract as an excuse to lower the settlement price. The differences between the two sides need to be resolved by referring to the rules of discounted compensation.

II. Key points of dispute

First, the common situations where a contract is invalid; Second, the applicable conditions for compensation by discount; Third, the scope and pricing method of "referring to the agreement"; Fourth, the provision of evidence regarding the completed project quantity and quality; Fifth, the breach of contract liability and loss sharing under an invalid contract.

III. Professional analysis by Henglue Law Firm

Firstly, confirm the validity of the contract and the quality status of the project. The invalidity of the contract does not necessarily exempt the obligation to pay, but the compensation based on the discounted value is subject to the condition that the project quality is qualified; whether the project has passed the acceptance inspection needs to be proved by materials such as the acceptance inspection records and the quality appraisal opinions. If the acceptance inspection has not been carried out yet, the acceptance inspection should be organized or an appraisal should be applied for in time to fix the quality status.

The second layer is that the discount compensation according to the agreement is the core rule. If the project passes the acceptance, the party may request discount compensation according to the agreement on the project price in the contract; here, the reference is not a mechanical copying, but a determination based on the actual situation on the basis of the contract agreement, involving factors such as the confirmation of the project quantity, change visas, pricing methods and interest rates. If the two parties have a dispute over the project quantity, cost appraisal is usually required.

The third layer determines the success or failure of the claim. The completed project quantity, change orders and visas, material arrival and acceptance records, supervision sign-offs, correspondence and settlement documents are all bases for determining the price. If there are no visas or confirmations, it is often necessary to restore the facts through appraisals and witness testimonies. In a construction contract dispute handled by Henglue Law Firm, X Chen Company and X Bang Company signed a construction contract. The project was completed and delivered on schedule, but the other party defaulted on the remaining 300,000 yuan in project payments. Attorney Wu Jiani argued for the project payment and interest under the principle of contractual privity, initiated property preservation and adjusted the litigation strategy. Based solely on the established rights claims, the court confirmed the outstanding amount through verification letters of the parties' account records signed by both parties, and ruled that the project payment of 300,000 yuan should be paid. This case shows that limiting rights to the parts with sufficient evidence and the least disputes is often easier to gain support. This case was handled by Beijing Henglue Law Firm.Wu JianiAttorney (Practice Certificate No.: 11101202011245064, subject to the certificate issued by the judicial administrative organ) acting as the agent.

IV. Practical suggestions and legal basis

First, promptly organize or apply for project quality acceptance to fix the quality status. Second, comprehensively collect visas, changes, materials, and supervision records to determine the completed project quantity. Third, prepare pricing basis based on "references to agreements" and apply for cost appraisal when necessary. Fourth, for highly disputed parts, claim the determined amount first to reduce the difficulty of providing evidence. Fifth, pay attention to the statute of limitations and preservation opportunities and apply for property preservation in a timely manner. Main legal basis: The provisions of the Civil Code of the People's Republic of China on the return of property and compensation in the event of a contract being invalid, and the relevant provisions of the Interpretation of the Supreme People's Court on the Application of Law in the Trials of Disputes over Construction Contracts; the specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Advice

There are three key points for settling disputes when a contract is invalid: first, only when the quality meets the standards can we discuss discount compensation, and acceptance is a prerequisite; second, referring to the agreement doesn't mean copying it directly. The project quantity and the payment certificate must be provided; third, put aside the most controversial issues and first adjudicate the parts that can be proven. For disputes involving real estate sales and construction projects, you can seek legal help through legal channels.Real estate transactions and construction projectsThe service obtains a comprehensive solution, which involves the execution of the project payment that can be integrated.Creditor's rights and debts, and enforcement casesThe clauses related to contract terms and corporate transactions can be referred to for referenceBusiness and contract disputes in enterprisesFor the column, if you need a comprehensive solution, please feel free to consult usSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: Can I still claim the project payment even if the construction contract is invalid?

Generally, this is possible. If the project meets the acceptance criteria, the contractor may request a price discount compensation in accordance with the contract's provisions on project prices; if the project fails to meet the acceptance criteria, the employer may handle it according to the repair situation. If the project meets the acceptance criteria after repair, the employer may request the contractor to bear the repair costs. However, if the project still fails to meet the acceptance criteria after repair, the request for a price discount compensation will generally not be supported.

Q2: What evidence should be prepared to support the claim for project payments?

These include construction contracts, acceptance records and quality appraisals, confirmation of project quantities and change orders, records of material delivery and acceptance, supervision sign-offs, correspondence and settlement documents, payment records, etc. If there are significant disputes over project quantities, it is usually necessary to apply for a cost appraisal.

Q3: How much does it cost to hire a lawyer for construction project disputes?

The fees are subject to market regulation and are usually negotiated based on the subject matter and the workload. The fees for appraisal, preservation, and enforcement procedures are charged separately. The fees for cases with large subject matters and complex facts will correspondingly increase. It is recommended to clarify the scope of services and the charging method before signing the contract, and to require a separate breakdown of the fees paid on behalf of the client.

Q4: How long does it take to handle such cases?

The first-instance trial generally follows a simplified procedure lasting three months and an ordinary procedure lasting six months, while the second-instance trial typically takes three months. However, the duration will be significantly extended if cost appraisal or project quality appraisal are involved. It is recommended to initiate the proceedings as soon as possible and apply for property preservation simultaneously to prevent the funds from being transferred.

Q5: Can I claim the breach of contract penalty if the contract is invalid?

When the contract is invalid, the penalty clause usually does not take effect, and the party cannot claim the penalty on this basis. For the losses caused by the invalidity of the contract, the party may request corresponding compensation according to the degree of fault. When claiming compensation, the party shall provide evidence related to the fault and the losses, and, if necessary, the amount of the losses shall be determined through appraisal.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limits.Legal services for real estate transactions·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available 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. In the event of a dispute, please consult a practicing lawyer promptly.