To optimize the development environment of the construction industry and reduce the burden on construction enterprises, Guizhou Province recently issued new regulations specifying that before a project starts, a two-way guarantee system will be implemented: the project owner must provide a project payment guarantee to the contractor, and the contractor must provide a performance guarantee to the project owner, under a guarantee system using bank guarantees and guarantee company guarantees.
According to the "Implementation Opinions on Promoting the Sustained and Healthy Development of the Construction Industry" recently issued by Guizhou Province, Guizhou will promote construction project guarantee insurance in areas such as construction project bidding, contract performance, project payment, migrant worker wage payment, and quality warranty. Insurance contracts or policies issued by insurance companies shall have the same effect as cash and bank guarantees.
The opinions require that no unit may arbitrarily establish other deposit requirements beyond those prescribed by law. Units whose labor security credit rating for construction enterprises is B or below may not use guarantee letters to deposit migrant worker wage payment security funds. No unit may refuse to accept bank guarantees or guarantee company guarantees provided by construction enterprises, or insurance company insurance contracts or policies, as payment of deposits.
Regarding project price settlement, audit authorities should strengthen audit supervision of public works construction projects mainly invested by the government in accordance with the law. Project owners may not use unfinished audits as a reason to delay project settlement or default on project payments. At the same time, the agreement and adjustment of project prices in contracts should be strengthened, the system of settlement during the construction process for project prices should be implemented, advance project payments and progress payments should be standardized, and project owners' performance behavior should be constrained through means such as project payment guarantees, strictly preventing defaults on project payments.