To construction industry, it could be hard to say that 2015 is a year of ordinary. It’s hard because in this year, the industry suffered a slumped market and a number of enterprises were faced with dilemma of bankrupt. The adjustment of certificates renewal policy and delayed introduction of tax reform policy have given a very hard time to numbers of enterprises in this sector. The market trends and relevant policies of 2015 will remain its power until the next year, which gives it a strong point to review the year of 2015, obtaining guidance to the year of 2016.
This text is founded on 20330460 page-views on Wechat official accounts (Construction Management and Construction Management and Informationization, 16952837 and 3377623 page-views respectively ) of Zhejiang Du Chuan Network Technology Co., Ltd. This text will join with Du Chuan Network (Wechat Official Account: Construction Management) to give a review on 12 big events in 2015.
2015 Key words No.1 Certificates Renewal
Following the Construction Enterprise Qualification Standard (Construction Administration No. [2014]159) issued on Nov 6th, 2014, subsequent documents of qualification relevant policies have been introduced in 2015, which includes: Administration Provisions of Construction Enterprise Qualification (Ministry of Housing and Urban-Rural Development of the People's Republic of China Art No.22), Administration Provisions of Construction Enterprise Qualification and Implement Opinions of Qualifications Standards(Jianshi No. 〔2015〕20), Notification on Qualification Management of Construction Enterprise (Jian Ban Shi Han No. [2015]385),Notice on Construction Enterprise Certificates Management (Construction Administration No. [2015]154 ), Notice to Renew Construction Enterprise Certificates (Construction Committee Municipal Letter No. [2015]870 ), Notice on Adjust Construction Enterprise Certificates Net Assets Evaluation (Construction Administration No. [2015]177), Notice on Cancelling Construction Intelligence and other 3 Engineering Design and Certification Relevant Issues (Construction Administration No. [2015]102), etc.
2015 Key words No.2 Bankrupt
High labor cost, the dead receivables from previous project, effort to earn new project…Survival for construction enterprises in 2015 seems difficult. In such circumstance, even some of special grade enterprises with billions of assets like Zhong Cheng Construction in Wenzhou and Hua Feng Construction in Ningbo have been pushed to the door of bankrupt, not to mention middle and small scale enterprises-----In Beijing, 161 grade 2 and grade 3 enterprise have been written off at one time in the end of 2015.
2015 Key words No.3 Put into Jail.
On 21st of December of 2015, the case of “12.29 Beijing Tsinghua University High School Site Collapse ” , which resulted in 10 death and 4 injury, has been sentenced in the first instance. Actual project director Yang Zezhong, project executive manager Wang Jingli, project technical director Cao Xiaokai, project production manager Wang Yingxiong, Rebar section chief Tian Yong, construction worker Jing Xin and others responsible for the accident , 15 in total, were convicted of crime of negligently causing a serious accident and sentenced to 3-6 years respectively.
2015 Key words No. 4 Databases 1 Platform
According to the National Construction Market Supervision and Integrity Information System Foundation Database Standards (Tentative) and National Construction Market Supervision and Integrity Information System Foundation Database Regulation (Tentative), which published by Ministry of Housing and Urban-Rural Development on July of 2014, the foundation database of engineering enterprises, registered personnel, engineering projects and integrity records in all provinces and autonomous regions shall be established by the end of 2015. And to build a platform in which combined the construction market and supervision system of project quality( Hereinafter refers to 4 databases 1platform). By this 4 databases 1 platform, policy makers can have dynamic records of engineering projects main market and site behaviors, reach connection between the market and construction site, and archive the informationized-supervision of “Database-Supervision net-Management Line” on overall national construction market.
2015 Key words No.5 Tax Reform.
According to the 12th five-year plan, the policy of Tax Reform should be fully developed by 2015. However, not everything always turns out as planned. The refom has finally pushed into the 13th five-year plan. On Dec 28th of 2015, the national financial conference held in Beijing, Lou Jiwei, the minister of finance, proposed to fulfill the tax reform in an all-round way in 2016. Construction industry, real estate, financial industry and residential service were deemed pilot sectors.
2015 Key words No.6 Reform of Tender
On July 8th 2015, NRDC, Ministry of Industry and Information Technology, Ministry of Housing Urban and Rural Development, Ministry of Transportation, Ministry of Water Resources, and Ministry of Commerce jointly issued Notice to Promote National Electronical Bidding and Tendering (NRDC Regulation[2015]No.1544 ).
Pilot Type and Time:From Shen Zhen and Kun Ming, the pilot area has expanded to Zhe Jiang, Hu Bei, Hu Nan, Gan Su, Guangzhou and Yi Bin. Each department and region can recommend and apply to carry out the new policy combined with local reality. The transaction platform pilot is recommended by local municipal and industry in accordance with Electronical Bidding and Tendering Rules and technical specifications. The pilot platform was conducted with instructions from NRDC and relevant departments, by which guaranteed the transparency and fairness of the platform. The time limit of pilot of this batch is from issuance to Dec 30th of 2016.
Pilot Task: To promote the pilot platform aims at exploring new system of sharing information of electronical bidding and tendering and a supervision mechanism of bidding and tendering, and creating favorable environment for market competition, and to realize sharing of information and organize market orders. Pilot main tasks: 1.To build ordered electronical bidding and tendering system; 2.To innovate supervision manners of bidding and tendering; 3.To create favorable mechanism.
2015 Key words No.7 Market Unity
On Sep 18th, Prime Minister Li Keqiang called a conference about deepen state-owns enterprise reform and development. Knowing that Meng Fengchao, the president of 中铁建, registered over 200 “shell company” in order to tender in different regions, Li Keqiang instruct to relevant departments: Construction market shall be a market of unity, of no separated groups.
On Sep 21, ministry of housing and urban-rural development issued Regulations to Promote Unity and Openness of Construction Market (hereinafter refer to as “Regulations”, which introduced relevant rules on breaking regional protection ). The Regulation clearly stated that authorities at all levels are banned to breach the law and regulations, or to implement directly or in directly the below behaviors:
(一)To set up any approval, filing or notify conditions.
（二）To Charge any fee or deposit without foundational law or regulations.
（三）To ask ecdemic enterprises register subsidiary or branch in local region.
（四）To detain relevant document and identities of ecdemic enterprise and personnel;
（五）To ask the enterprise register place municipal department to issue relevant certificates;
（六）To take enterprise grade as enter-region condition;
（七）To take project numbers and prize awarded in local region as enter-region condition.
（八）To ask the legal person of enterprise at site in person for formalities.
（九）Other behaviors which interfere with independent operation of enterprise and fair competition.
The Regulation emphasized to investigate and punish in accordance with the law of illegal sub-contracts, affiliated, illegal subcontracting and other illegal acts. The Regulation pointed out that all provincial housing and urban-rural authorities should open information of bid-winning enterprises(including enterprises which gain contact directly) management personnel on local construction market information platform. And to concrete on discrepancy between actual management personnel and bidding information, misconduct of project directors, swift project director in various project and likelihood, to punish enterprises sub-contacting, affiliated and other illegal operation.
2015 Key words No.8 PPP
Government and Social Capital Cooperation Model (Tentative), 30 PPP demonstration projects list, namely, Notice of Government and Social Capital Cooperate Demonstration Projects and NDRC issued Instructions of Government and Social Capital Cooperation. The Regulations of Infrastructure and Public Utility Franchise issued on June 1st of 2015 by development and Reform Commission, the Ministry of Finance and other six ministries proposed to take effect on June 1st 2015. In May 19 of 2015, the general office of the State Council forwarded the notice of the Ministry of Finance / development and Reform Commission / people's Bank of China on promoting the guidance of government and social capital cooperation model in the field of public service. On the end of 2015, the Ministry of Finance introduced another document PPP Comments Index(Tentative) (Hereinafter refer to as Index).The policy has set an national standard for PPP model value, has significant meaning to PPP practice in different regions.
2015 Key words No.9 Construction Industrialization
Match of 2015, Sploid, an editor of an American blog website, received a video sent from a subscriber in China. In which, a building named “Xiao Tian Cheng” was recorded being built up to 57th floor in an unbelievable 19 days. That video was soon spread over the internet. People were stunned by the“Speed of China”for 3 days/ storey. And the video has also brought BROAD Group, the builder which has been unheard in market for over a year, back to the sight of public. The magic speed is sourced from the factorial construction method. Factorial Construction, known as Industrial Construction as well, is a method to have components like slab, wall, accessories to be mould in factory, and then deliver to construction site for installation. As shown in the video, there were 8 cranes lifted and installed the components like a huge octopus.
On the 2015 China Engineering Construction Project Management Development Conference held on November 14th , an official from the new construction industrial integration construction engineering technology research center in the Ministry of Housing and Urban-rural Development said that the Construction Industry Modernization Development Guideline (herein after refer to as Development Guideline) has been completed its consultation stage, and hopefully to be introduced in the near future. The Development Guideline defines that by2020, the factorial-construction will account for 20% of new construction, and the number will increase to 50% by 2025. On December 24th of 2015, aimed at promoting the industrialization of steel structure construction, the Ministry of Housing and Urban-rural Development has issued grade 1 general contracting certificates to 27 companies.
2015 Key words No.10 The Belt and Road
The Belt and Road refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It fully based on the mutual & multiple mechanism between China and relevant countries, in virtue of the existing viable region cooperation platform. The Belt and Road Initiative was deemed the nation’s top strategy at current stage.
On March 28th of 2015, NDRC, Ministry of Foreign Affairs and the Ministry of Commerce jointly issued the Vision and Action of Promoting Joint Development of Silk Road Economic Belt and 21st Century Maritime Silk Road, in which pointed out that to take the unique regional advantage of Xin Jiang Province to maximum and its window effect facing western China, to deepen interflow and cooperation with countries in the mid-Asian, south-Asian and the west-Asian, to form as an important transportation hub as well as trading and education center on the Silk Road Economic Belt, build the core of Silk Road Economic Belt.
Rising on the basis of the characteristics of high openness, strong economic and leading power in Yangtze River Delta, the Pearl River Delta, the west side of the Straits, and Bohai economic zone. Promoting the development of China(Shanghai) Pilot Free Trade Zone and supporting Fu Jian Province building the core zone of 21st Maritime Silk Road.
To give full play of Qianhai, Nansha, Pingtan, Hengqin and otheropen cooperative zone, deepen cooperation with HK and Macao.
To build Zhejiang Marine Economic Development Demonstration Zone, Fujian Straits Blue Economic Experimental Zone and Zhoushan Islands Zone, strengthen openness of Hainan Islands International Tourism. Build ports of Shanghai, Tianjin, Ningbo-Zhoushan, Guangzhou, Shenzhen, Zhanjiang, Shantou, Qingdao, Yantai, Dalian, Fuzhou, Xiamen, Quanzhou, Haikou, Sanya.etc. Strengthen Shanghai and Guangzhou as international hub airport. Renovation on economic mechanism, development on technology to increase international competition capacity, form the main force of the Belt and Road Initiative.
2015 Key words No.11
Policy continue to be introduced to public, shed light on underground pipe construction. Following the Guiding Opinions of the General Office of the State Council on Strengthening the Management of Urban Underground Pipeline Construction issued on June 2014, with the determination of Baotou, Shenyang, Ha Er Bin, Suzhou, Xiamen and other 7 cities, the Office of State Council published the Guiding Opinions on Strengthening the Management of Urban Underground Pipeline Construction on Aug 10th 2015, underscoring the municipal underground pipeline construction. In the Guiding Opinion, it stated by 2020, aiming at completing underground pipeline construction matches international standards and will put into operation. To encourage social capital invests on the construction and operation by franchising, investment subsidies, subsidized loans.
2015 Key words No.12
The recent years have witnessed the overall adjustment of the 5 minister and deputy positions of housing and urban-rural development. Following Mr. Chen Zhenggao, the minister, and Mr. Wang Ning, the deputy, there were other 3 deputies, Mr. Yi jun, Mr. Lu Kehua, and Mr. Ni Hong, have been appointed. In which, Mr. Yi Jun is the First Deputy Minister.
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