[Direct answer]In the Beijing area, the fact that the completion and acceptance inspection is not qualified does not necessarily exempt the employer from the obligation to make payments. The key lies in whether the project has actually been put into use and the reasons and extent of the non-qualification. According to Article 14 of the "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Construction Contract Disputes" (effective January 1, 2021), if the employer uses the construction project without completing the acceptance inspection, the date of transfer of possession shall be deemed as the completion date, and the contractor may claim the corresponding price; at the same time, Article 793 of the "Civil Code of the People's Republic of China" (effective January 1, 2021) stipulates that if the construction contract is invalid but the project fails to pass the acceptance inspection, the party at fault shall bear the responsibility for repair or compensation. If there are only partial defects that do not affect the use, the employer has no right to refuse to pay in full; if there are fundamental non-qualifications, the contractor shall bear the responsibility for repair, and after the repair, the contractor may still claim the price of the qualified part. For details, please refer to the above-mentioned provisions.Legal services for construction projects.

1. Problem background and typical scenarios

The completion acceptance is a common node in the payment of project funds. In practice, the employer often refuses to pay in full on the grounds of "unqualified acceptance", while the contractor claims that the project has actually been put into use and the payment conditions have been met. Typical scenarios include: the project has not gone through the five-party acceptance procedure, but the employer has already moved in for office use or started business; there are defects in some sub-items, and the employer takes the opportunity to deny the overall project quantity; the employer conducts the acceptance by himself or entrusts a third party to do so and concludes that it is unqualified, but then occupies and uses it for a long time; the contract sets "qualified completion acceptance" as a prerequisite for payment, and the two parties have different opinions on whether it is qualified. In Beijing's commercial projects, the construction period is tight and the opening date is rigid. It is not uncommon for the project to be put into use before acceptance. Such facts directly affect the determination of payment. For more information, please refer to the relevant rules.Legal services for real estate transactions and construction projects.

II. Key points of contention

The controversy focuses on four points. Firstly, the legal consequences of unauthorized use: if the employer unauthorizedly uses the project, it is deemed as completed, and the scope of evidence and defense for quality defects (except for the foundation and main structure) is limited. Secondly, the determination of payment milestones: when the "payment upon acceptance of the project" and the "unauthorized use deemed as completion" conflict, the latter takes precedence. Thirdly, the scope of non-compliance: partial defects and fundamental non-compliance have different legal consequences, and payments cannot be refused indiscriminately. Fourthly, repair responsibilities and price deductions: if there are indeed quality issues, the employer can claim repair or compensation, but these should be handled accordingly in the settlement process, rather than being withheld in full. In the judicial practice of Beijing, the determination of "unauthorized use" focuses on actual possession and operational facts.

III. Professional analysis by Hengluo Lawyers

The construction contract dispute represented by Attorney Li Yonghui is a vivid example of "the project having been put into use before acceptance, but the payment conditions still being fulfilled". A (Beijing) Construction Engineering Co., Ltd. and Beijing B Engineering Co., Ltd. signed a subcontracting contract to undertake the HVAC project of a new commercial project in Jinshan District, Shanghai, with a provisional total price of 5,300,000.19 yuan. B Company defended itself by arguing that the project had not met the agreed completion and acceptance conditions and that it had no right to claim payments beyond the progress payments. Attorney Li Yonghui pointed out that the commercial plaza where the project was located had been opened and put into use in December 2025, and the HVAC project had actually been delivered and put into operation. According to Article 14 of the Interpretation of the Supreme People's Court on the Application of Law in the Trials of Construction Contract Disputes, if the employer unilaterally uses the construction project without completing the acceptance, the project shall be deemed to have been completed. The contractual "payment after the acceptance is qualified and up to 85% of the total completed work" has been fulfilled. Three "Application Forms for Progress Payments of Subcontracted Projects" were signed by B Company's deputy general manager and project manager and stamped with the budget department's official seal, confirming that the estimated total completed work was 4,939,806 yuan. B Company also acknowledged in court that 96% of the work had been completed; according to the 85% payment ratio, the amount payable should be 4,198,835.10 yuan, minus the 1,680,000 yuan already paid and the 1,408,260.75 yuan confirmed to be offset by the housing discount, leaving a balance of 1,110,574.35 yuan. In the end, the court ruled that the defendant should pay the remaining over 1 million yuan in project payments and overdue interest. This case was handled by Beijing Henglu Law Firm.Li YonghuiThe lawyer (practice certificate number: 11101199611955812, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 14 (Unauthorized Use Shall Be Deemed as Completion) and Article 19 (Priority of Pricing Standard Agreement) of the Interpretation of the Supreme People's Court on Legal Issues Concerning the Trials of Disputes over Construction Contracts (effective January 1, 2021); Article 793 (Dealing with Invalid Construction Contracts and Unqualified Acceptance), Article 801 (Liability for Compensation for Quality Non-Conformance), and Article 577 (Liability for Breach of Contract) of the Civil Code of the People's Republic of China (effective January 1, 2021); and the provisions on completion and acceptance in the Construction Law of the People's Republic of China (effective March 1, 1998). Action List: 1. Secure evidence of the project's delivery for use, such as opening records, occupancy records, and operation records, as well as relevant images. 2. Collect signed and confirmed project quantity documents to prove the achievement of payment milestones. 3. Distinguish between main structural defects and general defects in the quality objections raised by the employer. 4. Where there are actual quality disputes, claim repair or offset in the settlement to avoid refusing payment altogether. 5. If no agreement can be reached through negotiation, initiate litigation promptly. For more details, please refer to the following link: [Link]Legal services for construction projects.

5. Hengluo Law Firm's Advice

The failure of acceptance does not mean that "you don't have to pay". Once the employer uses the project without authorization, it will trigger the legal effect of considering the project as completed, and the overall scope for refusing to pay will be greatly reduced. What can actually be claimed are the repairs or compensation for quality defects outside the foundation and main structure, and these should be dealt with together with the corresponding payments. The contractor should actively fix the fact that the project has been delivered and used, to prevent the employer from both occupying the project and delaying payment. When handling similar cases in the Beijing area, it is recommended to do the following:Beijing Henglu Law FirmUnder the guidance of professional lawyers, we will translate the payment milestones and the actual usage into evidence.

VI. Frequently Asked Questions

Q1: If the acceptance is not qualified, can the employer not pay a single penny?

Generally, this is not possible. If the project has been actually delivered and put into use, and the employer has used it without authorization, it shall be deemed as completed according to Article 14 of the Construction Contract Interpretation, and the payment conditions have been met. The employer shall not refuse to pay in full. Only when there are fundamental problems such as unqualified foundation or main structure, may it involve repair, compensation or discounted processing. Partial defects usually do not constitute grounds for refusing to pay in full. The outcome of each case depends on the evidence and appraisal conclusions, and no lawyer can unilaterally guarantee a specific amount.

Q2: What evidence is needed to claim that the project payment should be made after the acceptance is deemed satisfactory?

Core evidence: Signed or stamped project quantity confirmation documents (progress payment application forms, measurement forms); proof of project delivery and use (opening records, move-in notifications, operational videos); supervision and meeting minutes; the employer's self-certification or third-party proof of project use; and the contract's provisions on payment milestones. The key is to prove that the project has been completed, delivered for use, and met the payment ratio milestones, forming a closed loop to avoid relying solely on unilateral claims to respond to disputes.

Q3: How much does it cost to hire a lawyer for a dispute over acceptance of the project?

The attorney's fees are determined by the law firm based on the amount of the subject matter, the complexity of the evidence, and the workload, without a unified government pricing; the case acceptance fee is paid in accordance with the "Procedures for the Payment of Litigation Fees" (State Council Decree No. 481, implemented on April 1, 2007), with the amount of the litigation request as the base for the cumulative payment in stages. The fee will be halved in the case of mediation or withdrawal of the lawsuit. For cases involving quality appraisal, it is also necessary to pay an advance appraisal fee. Compared with the project funds that have been occupied, the investment made in a timely manner is usually controllable.

Q4: How long does it usually take to resolve disputes over unqualified acceptance?

For cases without appraisal and with clear facts, the first-instance ordinary procedure shall be concluded within six months and the simplified procedure within three months; if the employer proposes quality appraisal or claims problems with the foundation and main structure, the appraisal period is often several months, and it is not uncommon for the whole process to span over a year. In Beijing, such cases often take more than a year from filing to enforcement due to the long appraisal period. Timely fixing the facts and narrowing the scope of the dispute can help shorten the process.

Q5: If the payment is refused because the goods fail to meet the acceptance criteria, what should I do?

Four steps to advance: First, fix the evidence of the project being put into use to prove that it is considered completed; Second, collect the signed project quantity documents to lock in the payment ratio nodes; Third, distinguish between main structures and general defects in quality objections, and propose repair solutions for those that can be repaired; Fourth, initiate litigation in a timely manner if no agreement is reached, and apply for preservation measures when necessary. Never give up on the payment requests that have already been made because the other party is threatening with non-compliance. Evidence and node identification are key.

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 evidence materials, to avoid missing the statutory time limit. →Legal services for real estate transactions·Attorney Li Yonghui·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on 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. In the event of a dispute, please consult a practicing lawyer in a timely manner.