[Changsha] The contractor claimed to have lost RMB 20 million, citing Country Garden’s poor quality due to its low cost.

?Changsha Venice is the first project of Country Garden Group to implement labor outsourcing. Now that such a problem has arisen, they have been fired 100 times without getting angry. ? On the morning of December 5, Liu Jiayi, assistant to the chairman of the board of directors and director of investor relations of Country Garden Group, told Luo Shaobo and his wife, the owners of Country Garden’s problem villa, in a private room at the Xiangyuyuan Tea House on Wuyi Avenue in Changsha.

How do outsourcers come into being who are still angry at being fired 100 times? Why did Country Garden’s first outsourcing project create so many problems? How did the contractors build these villas? "Daily Economic News" reporters launched further investigation into this.

4 companies participated in the construction of Venice City

Who built Country Garden Changsha Venice City? In the diary of Fan Shaoxiang, then Country Garden field engineer, the reporter found two companies: one is Hunan Xingda Construction Group Co., Ltd. (hereinafter referred to as Hunan Xingda), and the other is China Construction Fifth Engineering Bureau. After a follow-up investigation, two more companies have surfaced: Hunan Guangfu Construction Co., Ltd. (hereinafter referred to as Hunan Guangfu) and Hunan Wangxin Construction Group Co., Ltd. (hereinafter referred to as Hunan Wangxin), of which Hunan Xingda is responsible For the project from District 7 to District 12, Hunan Guangfu is responsible for the construction work from District 13 to District 22, while China Construction Fifth Engineering Bureau and Hunan Wangxin are responsible for the construction from District 1 to District 6.

The housing quality problems in District 12 previously reported by "Daily Economic News" fall within the scope of Hunan Xingda Construction. According to information provided by the Hunan Provincial Administration for Industry and Commerce, Hunan Xingda is a non-listed joint-stock company registered with the bureau. It was established on October 14, 1998, with a registered capital of 140.08 million yuan, and has first-level qualifications for general contracting of housing construction projects. The founders of the company are the Trade Union of the Construction Engineering Company of Xingsha Town, Changsha County, and 29 natural persons including Zhuang Xinming and Chen Liang. Its legal representative is? Dingwu.

According to the website of Hunan Xingda Group, many projects such as Changsha Country Garden Venice City constructed by Xingda Group have been rated as provincial excellent model projects.

Wang Xufei, manager of the quality safety department of Hunan Xingda Group, told reporters that the company contracted the construction of Areas 7 to 12 of Country Garden Venice. The general contractor was the company’s project manager Deng Wen, but 12 of them Country Garden designated Frontier as the project manager for the districts. What we actually worked on were Districts 7 to 11. Industry insiders in Changsha told reporters that although the law does not allow such subcontracting or subcontracting, this kind of project operation mode is very common in Changsha and even across the country. The initiative of the project does not lie with the construction company, but directly. Project contractor. ?

The reporter found Deng Wen, the project manager of Hunan Xingda who was contracting the construction of the Country Garden Venice project at the time. He admitted to reporters that he was the project manager of Xingda Country Garden at the time. Hunan Guangfu Construction Company, where Deng Wen currently serves as general manager, also undertook the construction of Venice City at that time. The construction area was from District 13 to District 22.

According to the company registration information provided by the Hunan Provincial Administration for Industry and Commerce, Hunan Guangfu is a non-listed joint-stock company registered with the bureau. The date of establishment was August 15, 1997, and the earliest registered capital was 4,030 Ten thousand yuan, undertaking the second-level construction of the general contracting of housing construction projects. Similarly, Hunan Wangxin, another company responsible for the construction of Country Garden Venice City, is also a non-listed joint-stock company registered with the Hunan Provincial Administration for Industry and Commerce. The date of establishment is August 7, 1998, with a registered capital of 314.515 million yuan, and the legal representative is Zhou Guohui. However, when the reporter visited the company, the company's leaders were out of town, and its office staff repeatedly urged the reporter to leave quickly.

It should be noted that not all Venice City projects built by contractors had problems.

The contractor blames the project? The cost is low?

Wang Xufei, manager of the quality safety department of Hunan Xingda Group, told reporters that more than a month ago, Country Garden invited him to a meeting in the Venice City in Changsha. After a rectification meeting, we talked about the quality of the house and how to rectify it. Several parties we attended at the meeting left their phone numbers, but we have not yet received a call from them. Wang Xufei believes that one reason for the poor quality of housing is that the construction price given to them by Country Garden is too low.

?Initially, the construction price given by Country Garden was too low, and the price adjustment policy was not flexible and could not keep up with the speed of the market. In 2006, the price of steel bars and other building materials increased rapidly, but after we reported the price to Country Garden’s board of directors, It takes them a long time to approve it, and sometimes they even fail to approve it. They also appear to be very strong when it comes to settling project payments. What they do best is to lower the material prices and labor prices on the market to very low levels. There is no advantage at all in negotiating with them. ?

?Take the 12th district you reported on. At first, we almost thought that the project manager had taken too much, resulting in low quality housing. However, we went to investigate and found that Frontier had invested money in it. Several million yuan was spent, but the final settlement of the project was still a loss. Wang Xufei said: "The main reason is that the townhouses he built did not have a frame of reference. Country Garden's construction costs were already very low. It was not profitable to contract them. In addition, the construction was suspended for two months for rectification, which resulted in huge losses." . ?

?The delay in settlement after housing acceptance further reflects Country Garden’s strength. There is a rule in our construction industry that after the project is completed, the builder will deduct about 5% of the project fee as a warranty deposit to pay for later maintenance costs. However, after the Venice City project we did was accepted, Country Garden also had a warranty deposit in addition to the warranty deposit. A large amount of project money has not been settled with us. ?

?The current situation is that the developer is too strong, and we still have a lot of money that we have not recovered. ? Wang Xufei’s immediate boss and general manager of Xingda Group, Cao Jingyu, said when meeting reporters.

However, Deng Wen did not admit that the house had quality problems. He told the "Daily Economic News": "At that time, all the main projects had been completed and accepted by the authoritative agency. If the appraisal agency appraised the house If there is a problem with the main structure, the construction party will be responsible for a lifetime warranty. ?As to whether Country Garden abused its dominant position, Deng Wen said he was no longer willing to recall the issue. ?Whether Country Garden is strong or weak, after all, the contract has been signed and it should be resolutely implemented. After it is done, it no longer makes any sense to say that the contract is unfair. ?However, he said that he might not do Country Garden projects again in the future.

Is the project manager who is in arrears for materials in a foreign country? Hiding from debt?

After completing the project, Frontier will lose more than 10 million yuan in settlement. Since last year, people have been asking him for money. He has never Since the Dragon Boat Festival this year, I have left Changsha to hide from debts. ?Wang Xufei told reporters that Jiangjiang is the project manager designated by Country Garden and is responsible for the construction tasks of townhouses in District 12. Before taking over the project in District 12, he was responsible for the construction of townhouses in District 4. ?As a result, many of the orders he signed were attributed to District 12. One day, he owed about 14 million yuan for materials and wages of migrant workers. Now Xingda has advanced three to four million yuan for this. ?Wang Xufei revealed that the reason why Borderland defaulted on material payments was that Country Garden did not fully pay its project fees. ?Even if Country Garden pays all the project fees, Frontier will still lose about 10 million yuan because the cost is too low. Wang Xufei said that the construction industry now mainly adopts the method of advance funds. Generally, the contractor advances funds in advance to purchase materials and recruits workers to build the house first. The builder (developer) pays the project fee after a period of acceptance, and then Continue development. However, after Borderland completed the project and passed the acceptance inspection, it was unable to get the project payment, which affected the next step of cooperation.

?

?The material costs were all paid on credit and used first, but the labor costs had to be paid immediately. Frontier paid several million for this project, but he did not settle the entire project payment in the end. As the company that won the bid for the project, we can only bear the legal liability he brought to us. Now three to four million have been deducted from the company's account. These are all our company's money. ?

?According to the original plan, we hoped that this cooperation would bring us about 1 million yuan in management fee income, but now it has brought us a deficit of 14 million yuan. Frontier is now We can't bear to avoid debts, but our company still has to operate normally, so we have to bear these losses. Wang Xufei said that since the end of 2008, there have been a series of lawsuits related to material suppliers. There are about 14 to 15 cases in total. Some cases have been closed, and some still need to be dealt with. Many material dealers are also very pitiful. They have worked hard to save some money, but after Country Garden's house was inspected, they have been delayed in not paying for the project, which has caused great harm to us, Frontier and the material dealer. The company has not paid until now. So much money for them. ?

Wang Xufei said: ?We have negotiated with Country Garden many times and only reached an agreement a month or two ago. We don’t need management fees anymore, and their board of directors will give us another three to four million yuan. We will then negotiate with the material supplier, hoping that they can give a small discount, and the company will pay a little more, and this dispute can be settled. ?

Project Manager: Loss of 20 million

On December 14, "Daily Economic News" interviewed Jiang Jiang, the project manager of District 12 in Shenzhen, on the phone. He was hiding from debts in Shenzhen. He is looking for new job opportunities and said, "The final accounts have not been completed yet. The company and I have lost more than 20 million yuan. My biggest hope now is that Country Garden will settle the project payment with me as soon as possible." ?

Bianjiang told the "Daily Economic News" that he initially had a joint venture relationship with China Construction Fifth Engineering Bureau. In 2005, he won the bid for the Country Garden District 4 project at a price of more than 1,000 yuan per square meter. ?After the project was completed, Country Garden thought that I was more experienced. After Xingda won the bid for Country Garden’s District 7 to District 12 project, Country Garden suggested that I be responsible for the construction of townhouses in District 12, and established a joint venture with Xingda relation. ?

According to reports, the combined construction area of ??District 4 and District 12, where Bianjiang is the project manager, is 80,000 square meters. The bidding price is more than 1,000 yuan per square meter, and the construction project fee is According to the contract, payment should be made three months after completion. If there is any discrepancy, it will be decided through negotiation during the final settlement.

?The townhouses we built have no frame of reference. After winning the bid, the cost of materials and labor costs have changed significantly. The labor costs increased from 60 yuan per day when the bid was won to 80 yuan per day upon completion. Our cost has also increased from more than 1,000 yuan per square meter when budgeted to about 1,400 yuan per square meter. ?Bianjiang said:?After the completion of the project, we have been urging for project payment every month. In the second half of last year, Country Garden paid more than 2 million, which is still far behind our loss. ?

?The current project payment given to us by Country Garden is about 1,200 yuan per square meter, but there is still a big gap between the 1,400 yuan per square meter we advocated. Now I have paid nearly 8 million yuan myself. ?Bianjiang said that in Country Garden projects, major building materials such as steel bars and glass are generally purchased centrally, while aluminum alloy doors and windows, construction scaffolding, etc. must be purchased or rented locally, and workers are mainly recruited locally. ?After the project suffered a loss, Country Garden has been delaying the final settlement until now. The workers cannot get their wages and the material suppliers cannot get the payment for materials. This has put a lot of pressure on me and the company. We only negotiate with Country Garden every month. We reached a verbal agreement more than a month ago, but Changsha still needs the approval of the board of directors before it can be resolved. ?

As for Country Garden, reporters have been calling Liu Jiayi, assistant to the chairman of the board of directors and director of the investor relations department, but since December 5, no one has answered the phone.