provided that he shall bear the liability for compensa ng any loss thus caused to the contractor.
Chapter XVIII Contracts for Construc on Project
Ar cle 788 A contract for construc on project is a contract under which a contractor carries out the
construc on of a project and the contract-o ering party pays the price in return.
Contracts for construc on project consist of contracts for project prospec ng, designing, and construc on.
Ar cle 789 A contract for construc on project shall be made in wri ng.
Ar cle 790 Bidding for a construc on project shall be carried out in an open, fair, and impar al manner in
accordance with the provisions of the relevant laws.
Ar cle 791 A contract-o ering party may conclude a contract for construc on project with a general
contractor, or conclude separate contracts for prospec ng, designing, and construc on with the prospec ng,
designing, and construc on par es respec vely. A contract-o ering party may not break up one construc on
project that should be completed by one contractor into several parts and o er them to several contractors.
A general contractor or a prospec ng, designing or construc on contractor may, upon consent by the
contract-o ering party, entrust part of the contracted work with a third person. The third person shall
assume joint and several liability with the general contractor or the prospec ng, engineering, or construc on
contractor to the contract-o ering party on the work product of the third person. A contractor may not
delegate the whole of the contracted construc on project to a third person or break up the contracted
construc on project into several parts and delegate them separately to third persons in the name of
subcontrac ng.
A contractor is prohibited from subcontrac ng the contracted project to any en ty without the
corresponding quali ca ons. A subcontractor is prohibited from re-subcontrac ng the contracted project.
The main structure of the construc on project must be completed by the contractor itself.
Ar cle 792 Contracts for major construc on projects of the State shall be concluded in accordance with the
procedures set forth by the State and such documents as investment plans and feasibility study reports
approved by the State.
Ar cle 793 Where a contract for construc on project is invalid but the construc on project has passed the
inspec on for acceptance, the contractor may be compensated with reference to the project price agreed in
the contract and based on the appraised price of the construc on project.
Where a contract for construc on project is invalid and the construc on project fails to pass the inspec on
for acceptance, it shall be dealt with in accordance with the following provisions:
(1) where the construc on project a er being repaired has passed the inspec on for acceptance, the
contract-o ering party may request the contractor to bear the repairing costs; or
(2) where the construc on project a er being repaired s ll fails to pass the inspec on for acceptance, the
contractor has no right to request for payment with reference to the project price agreed in the contract or
based on the appraised price of the construc on project.
Where a contract-o ering party is at fault for the loss caused by the substandard of the construc on project,
he shall bear corresponding liabili es.
Ar cle 794 A prospec ng or designing contract generally contains clauses specifying the me limit for
submission of documents rela ng to the basic materials and budget, quality requirements, expenses and
other coopera ve condi ons, and the like.
Ar cle 795 A construc on contract generally contains clauses specifying the project scope, the period for
construc on, the me of commencement and comple on of the project to be delivered in midcourse,
project quality, costs, delivery me of technical materials, the responsibility for the supply of materials and
equipment, fund alloca on and se lement, project inspec on and acceptance upon its comple on, range
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