[Direct answer]In the Beijing area, risks are generally divided based on the delivery of work results. Article 772 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that the contractor shall complete the main work with his own equipment, technology, and labor, unless otherwise agreed by the parties; Article 773 stipulates that the employer shall provide the materials as agreed, and the contractor shall inspect them in a timely manner. If the materials do not meet the agreed requirements, the contractor shall notify the employer in a timely manner. In terms of risk burden, the division is usually based on delivery: the risk of damage or loss of work results before delivery shall be borne by the contractor, and the risk after delivery shall be borne by the employer. If the results are damaged due to the materials provided by the employer not meeting the requirements or improper instructions, the responsibility shall be allocated according to fault. Where the contract stipulates the delivery method, acceptance standards, and risk transfer points, the provisions of the contract shall apply.

I. Problem background and typical scenarios

The damage or loss of the contracted results before and after their completion is prone to trigger disputes over liability. Typical scenarios include: the equipment customized by the factory being damaged by fire on the contractor's premises; the decoration project not yet being inspected and accepted, with the completed parts being damaged due to improper storage; the raw materials provided by the client having defects, resulting in unqualified or scrapped finished products; and the damage to the results during transportation, with both parties disagreeing on who should bear the risk. The core of the dispute lies in the timing of risk transfer and the division of material responsibilities. When handling such disputes in Beijing, delivery and acceptance records, material handover certificates, and storage agreements are important evidence, and relevant practices can be referred to for reference.Business and contract disputes in enterprisesThe processing approach of this problem.

II. Key points of contention

Focus One: The node of risk transfer: Is it based on delivery, or are there other agreed upon time points, such as acceptance of the product or completion of payment? Focus Two: Determining delivery and acceptance: Whether the product has actually been delivered, whether an acceptance inspection has been organized, and how the acceptance records are maintained. Focus Three: The responsibility of the material provider: If the materials provided by the client do not meet requirements, does the contractor promptly inspect and notify the client? Focus Four: The scope of the obligation of custody: Does the contractor fulfill a reasonable obligation of custody before delivery, and is there any gross negligence? Focus Five: Force majeure and unexpected events: If the damage is caused by force majeure, how is the risk allocated and whether there is exemption from liability. Focus Six: Handling partial damage to the results: Whether it can be repaired, and how to determine its value and settle accounts. Focus Seven: Insurance and guarantee arrangements: Whether property insurance has been purchased or a guarantee deposit has been agreed upon, which affects the actual assumption of losses.

III. Professional analysis by Henglue Law Firm

The practical experience of Henglue Lawyers is that the key to winning or losing disputes over risk burden lies in whether the contract clearly stipulates the delivery and acceptance procedures. Firstly, clarify the delivery standards: specify the delivery method, location, acceptance procedures, and quality standards in the contract to reduce disputes over the delivery time. Secondly, grasp the rules of risk transfer: generally, the contractor bears the risk before delivery, and the client bears the risk after delivery. Therefore, it is necessary to formalize the delivery and acceptance procedures in writing as much as possible. Thirdly, standardize the material handover: if the client provides materials, a written handover should be conducted and the specifications and condition of the materials should be recorded. After receiving the materials, the contractor should inspect them promptly and notify the client if there are any non-compliance issues. Fourthly, reasonably determine the obligation of safekeeping: before delivery, the contractor is obligated to exercise reasonable safekeeping duties. If the materials are damaged due to gross negligence, the contractor should bear corresponding responsibilities. Fifthly, properly handle force majeure: if the materials are damaged due to force majeure, the parties should handle the matter in accordance with the rules on force majeure and promptly notify and provide evidence. Sixthly, appropriately handle partial damage: if the deliverables are partially damaged, a repair or discount solution should be determined based on the actual situation to avoid simply attributing responsibility to one party. Seventhly, make good use of insurance arrangements: for high-value deliverables, risks can be mitigated through property insurance or deposit mechanisms. The above-mentioned approaches are in line with the principles of fairness, reasonableness, and practicality in handling disputes over risk burden in contractual relationships. 恒略律师的实务体会是,风险负担争议的胜负手在合同对交付与验收的约定是否清晰。第一,明确交付标准:在合同中写明交付的方式、地点、验收程序与合格标准,减少对交付时点的争议。第二,把握风险转移规则:一般情况下交付前由承揽人承担、交付后由定作人承担,故应尽量将交付与验收环节书面化。第三,规范材料交接:定作人提供材料的,应办理书面交接并记录规格与状态;承揽人收到后应及时检验,发现不符合约定及时通知。第四,合理认定保管义务:交付前承揽人负有合理保管义务,若因重大过失导致毁损,应承担相应责任。第五,妥善处理不可抗力:因不可抗力导致的毁损,应按不可抗力的规则处理,相关方应及时通知并提供证明。第六,部分毁损的折价:成果部分毁损的,依实际情况确定修复或折价方案,避免简单归责于一方。第七,善用保险安排:对高价值成果,可通过财产保险或保证金机制分散风险。上述思路与Business and contract disputes in enterprisesIt is consistent with the practical experience of the translation company.

IV. Practical suggestions and legal basis

Action recommendations: First, specify the delivery method, acceptance standards, and the point of risk transfer in the contract; Second, handle the transfer of materials and record the specifications and status in writing; Third, the contractor shall inspect the materials provided by the client in a timely manner and notify any defects; Fourth, fulfill the obligation of reasonable custody before delivery, and keep written records of important procedures; Fifth, for high-value results, arrange property insurance or agree on a deposit to disperse risks. Legal basis: Articles 770, 772, 773, and 776 of the Civil Code of the People's Republic of China (effective January 1, 2021), and Article 590 regarding the provisions of contracting contracts, material provision, acceptance, and force majeure. For contract clause design and dispute resolution, please refer to the relevant provisions.Business and contract disputes in enterprisesFor disputes involving engineering and equipment, you can refer to the following cases for reference.Real estate transactions and construction projectsFor cases involving the recovery of losses, you can refer to the following information for reference.Creditor's rights and debts, and enforcementThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, the risk burden is delimited by the delivery, and the written records of delivery and acceptance are crucial. Secondly, if the client provides materials, it is necessary to handle the handover and keep records of the specifications and conditions. Thirdly, the contractor should inspect the materials promptly after receipt and notify any defects in a timely manner, otherwise he may bear the consequences himself. Fourthly, the obligation of reasonable custody before delivery cannot be ignored, and serious negligence may lead to liability. Fifthly, high-value results can diversify risks through insurance and deposit arrangements. Disputes over payment settlements can be resolved throughCreditor's rights and debts, and enforcementUnderstand the path.

VI. Frequently Asked Questions

Q1: If the contracted results are damaged before delivery, who is responsible?

It is generally borne by the contractor. The risk burden is usually divided by the delivery. The risk of damage or loss of the results before delivery is borne by the contractor; after delivery, it is borne by the client. If the contract stipulates otherwise, the responsibility shall be determined according to the agreed time point of risk transfer. If the contract stipulates otherwise, the responsibility shall be determined according to the agreed time point of risk transfer.

Q2: If the materials provided by the client are defective and the finished product is scrapped, whose responsibility is it?

It needs to be judged based on the faults of both parties. The client should provide materials that comply with the agreement; the contractor should inspect them promptly after receiving them, and notify the client if they do not meet the requirements. If the contractor fails to notify the client in time, they may bear responsibility for the increased losses. If the contractor fails to notify the client in time, they may bear responsibility for the increased losses.

Q3: What is delivery? Is it necessary to actually deliver the goods to the customer in order for it to count as delivery?

Not necessarily. The delivery method can be agreed upon by both parties, which may include delivery, on-site acceptance, or signing a handover document. The key is to include the delivery method, location, and acceptance standards in the contract, and to retain written evidence to avoid disputes over the delivery time. It is recommended to include the delivery method, location, and acceptance standards in the contract and to retain written evidence.

Q4: What should I do if the results are damaged due to force majeure?

It should be handled in accordance with the force majeure rules, and usually, the responsibility can be partially or completely exempted according to the degree of impact. The affected party should notify the other party in a timely manner and provide proof within a reasonable period; the two parties may also negotiate to amend or terminate the contract and reasonably share the losses that have occurred.

Q5: If part of the delivered goods is damaged, can I request a discount on the price?

The parties may negotiate a discount or repair. For partially damaged items, the repair plan and costs can be determined based on the actual situation, or the compensation can be reduced according to the degree of damage. It is recommended to stipulate the acceptance standards and discount rules in the contract to reduce disputes and the cost of providing evidence afterwards. It is recommended to stipulate the acceptance standards and discount rules in the contract to reduce disputes afterwards.

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 facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Business and 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 you encounter disputes, please consult a practicing lawyer in time.