[Direct answer]In the Beijing area, parties can continue to perform the contract, claim compensation for losses, or terminate the contract in accordance with the contract and the law, and resolve disputes through litigation or arbitration if necessary. According to the provisions of the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021), if a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. Common breaches of contract in construction projects include: the employer defaulting on project payments, refusing to settle accounts or accept the project without justifiable reasons; the contractor failing to complete the project on time, delivering unqualified projects, or unilaterally changing the project scope; and losses caused by insufficient coordination between material supply and the construction schedule. When protecting their rights, parties should pay attention to the following: promptly preserving contracts, visa documents, change orders, and settlement and acceptance materials; confirming and settling the completed project scope; asserting rights within the statute of limitations; applying for project cost or quality appraisals if necessary; and, if the contract contains an arbitration clause, applying for arbitration to the designated arbitration institution. In addition, the contractor may also assert the right of priority compensation for the project price, but this right must be exercised within the statutory time limit.

I. Problem background and typical scenarios

Construction projects typically involve long durations, multiple participants, and large sums of money, with numerous uncertainties during the execution process. Typical scenarios include: after the project is completed and passed the acceptance inspection, the employer delays payment of the project funds; design changes and on-site certifications occur during the construction process, leading to disputes between the parties over the project scope and pricing; the employer refuses to pay or demands rework on the grounds of quality issues; the contractor suspends work due to funding or management issues, resulting in project delays; and the project is subject to multiple subcontracting and re-subcontracting, making it difficult to identify the responsible parties. With concentrated construction activities in the Beijing area and diverse types of disputes, the evidence of such disputes is often scattered across contracts, certifications, correspondence, and construction records. If management is not standardized during the normal process, it is easy to fall into a "difficult-to-prove" dilemma when seeking legal protection. Therefore, managing documents properly from contract signing to contract execution is the foundation of handling construction contract disputes.

II. Key points of contention

First, the determination of breach of contract and the division of responsibilities. Second, the method of determining the project quantity and project price, and whether cost appraisal is necessary. Third, the subject of responsibility for project quality issues and the bearer of repair costs. Fourth, the reasons for the delay in the project period and the claim for extension. Fifth, the conditions and time limit for exercising the right of priority compensation for project prices. Sixth, the choice of dispute resolution methods, and the application of litigation and arbitration. These issues determine the path and effectiveness of protecting rights.

III. Professional analysis by Henglue Lawyers

Henglue Lawyers suggest proceeding in three steps: "Secure evidence, determine responsibility, and choose a path". Firstly, secure evidence. Systematically organize construction contracts, supplementary agreements, bidding and tendering documents, drawings, change orders, visa forms, meeting minutes, correspondence, acceptance records, and settlement documents to form a complete chain of performance; for disputes over project quantities and prices, apply for cost appraisal in a timely manner. Secondly, determine responsibility. Analyze breaches of contract and causality, clarify whether it is the employer's default, the contractor's delay, or quality issues, and thereby determine the basis of the claim and the scope of compensation. Thirdly, choose a path. For those who wish to continue cooperation, they can claim continued performance and urge payment; for those who have fundamentally breached the contract, they can terminate the contract and claim compensation for losses; for those with arbitration clauses, they can apply to the arbitration institution. At the same time, the contractor should pay attention to the priority right of compensation for construction project prices and claim it in accordance with the conditions. In a case handled by Henglue Lawyers, one party entrusted another party to complete the project material production and signed a project outsourcing agreement with a fee of over 500,000 yuan. After the project was finalized and passed the acceptance by the other party, the other party delayed paying the remaining amount for a long time. The lawyers of our firm represented the applicant to initiate arbitration, claiming that the agreement should be terminated, the contractual fees and breach of contract damages should be paid, and the attorney's fees and arbitration fees should be borne. The arbitration tribunal adopted the lawyer's main opinion and ruled that the other party should pay the contractual fees of over 500,000 yuan and compensate for all the attorney's fees. This case shows that when the contract performance is completed and the results are delivered and accepted, the other party's delay in payment lacks a legitimate reason, and claiming rights through arbitration can effectively realize creditor's rights. At the same time, it also suggests that the clearer the provisions on acceptance standards, payment conditions, and breach of contract responsibilities in the contract, the smoother the protection of rights will be. The logic of protecting rights in construction contract disputes is similar, and the key lies in complete evidence, clear responsibility, and appropriate path selection. This case was handled by Beijing Henglue Law Firm.Xiong BinrongThe attorney (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: First, standardize the management of contracts, visas, settlements, and acceptance documents throughout the entire process; Second, promptly remind the other party and retain evidence of delivery, paying attention to the statute of limitations; Third, apply for cost appraisal when there are disputes over the project quantity or price; Fourth, the contractor should pay attention to and exercise the right of priority compensation for the project price in accordance with the law. For related services, please refer to the following link:Real estate transactions and construction projectsAndBusiness and contract disputes in enterprisesColumn. Legal basis: Articles 577, 583, and 584 of the Civil Code of the People's Republic of China (effective January 1, 2021) regarding breach of contract liability and compensation for losses, and Article 807 regarding the priority right of compensation for construction project prices. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Advice

Firstly, the outcome of construction contract disputes highly depends on the document management during the performance process. Secondly, disputes over the project quantity and price often require the support of cost appraisal. Thirdly, attention should be paid to the statute of limitations and the exercise period of the priority right of compensation. Fourthly, if the contract stipulates arbitration, the parties shall apply for arbitration to the agreed institution. If you want to learn about the protection measures for construction contract disputes, you can contact us throughReal estate transactions and construction projectsAndBusiness and contract disputes in enterprisesFor column consultation, please contact us.Beijing Henglu Law Firm.

VI. Frequently Asked Questions

Q1: How to protect your rights if the project payment is delayed?

First, you can send a written notice of default and retain the evidence of delivery, while organizing the contract, settlement, and acceptance materials. If the notice of default is unsuccessful, you can initiate litigation or apply for arbitration in accordance with the contract terms to claim the payment of the project funds and the overdue interest. If necessary, you can apply for a cost appraisal to determine the amount and consider claiming the priority right of compensation for the construction project price.

Q2: Do we need an appraisal for the dispute over project payments?

It depends on the specific circumstances of the dispute. If there are significant disagreements between the two parties regarding the amount of work completed or the price, it is usually necessary to apply for an engineering cost appraisal, and the opinion issued by a professional institution will serve as the basis for adjudication. If the settlement documents have already been confirmed or there are no disputes over the amount between the two parties, no appraisal is required, and the party can directly demand payment.

Q3: Can I refuse to pay if there are quality issues with the project?

It is necessary to distinguish the circumstances. If the quality problems are so serious that the contractual purpose cannot be achieved, the employer may assert corresponding rights; for general quality defects, it is usually necessary to first request repair or claim corresponding price reductions and repair costs, rather than refusing to pay in full. The relationship between quality responsibilities and payment obligations should be judged in light of the contractual provisions and the appraisal conclusions.

Q4: What is the right of priority compensation for engineering fees?

The contractor has the right to be compensated first for the construction project price, including the discounted or auctioned price of the project. This is an important system to protect the contractor's rights, but it should be exercised within the statutory time limit, and its scope and order are subject to legal restrictions. It is recommended to claim it together with the lawsuit or arbitration to avoid losing the right due to exceeding the time limit.

Q5: Can construction project disputes be arbitrated?

Yes, provided that the contract includes a valid arbitration clause. If arbitration is agreed upon, the parties shall apply for arbitration to the agreed arbitration institution and cannot file a lawsuit with the court. If the contract does not contain an arbitration clause or the clause is unclear, the dispute shall generally be resolved through litigation. When signing the contract, the parties should clearly specify the dispute resolution method to avoid disputes arising in the future.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are currently 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. →Corporate commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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 a timely manner.