"Ten Steps" to Urge Project Funds

Affected by the new "three red lines" financing regulations and the "two red lines" regulatory requirements for centralized management of bank loans, more and more owners are facing the risk of capital chain breakage, and it is increasingly difficult for construction units to repay funds. After in-depth discussion with Mr. Wang, an experienced legal person in charge of a branch of China Construction First Bureau, the author summed up the following "ten-step method" for dunning. # Construction funds #

The "ten steps" are roughly as follows: negotiation contact letter, dunning letter, lawyer's letter, renegotiation to stop public opinion, superior pressure to terminate the contract, and withdrawal of migrant workers (the first nine steps can be used). See below for details:

Premise: While the iron is hot, the measures and strategies of dunning are of course important, but it is fundamental to fulfill the contract well. The owner's default may be due to the general contractor's failure to meet the requirements of the project contract. Therefore, self-inspection should be carried out before dunning to ensure the progress and quality of the project, avoid counter-claims for the construction period and quality, and initiate dunning according to the application payment process agreed in the contract.

The first step is negotiation (cooperation wins)

It is not a "zero-sum game" to maintain a good cooperative relationship with the owners and win-win cooperation; Deepen the process settlement, recognize the facts first, and then recognize the expenses.

Work contact form/meeting minutes

Step by step in the name of the project, first in the form of engineering contact list/meeting minutes for dunning.

Step 3: Dunning Letter

(1) Matters needing attention in drafting letters:

1. The sender and the receiver shall draft the communication with the other party according to the contract, and send a copy to the superior unit if necessary.

2. The reason and amount of dunning, the reason of dunning should be clear, the amount of dunning should be clear, and the amount of engineering that has occurred and the amount of payment in arrears must be accurate.

3. The payment term shall be specified as the specific date of a certain year, month and day.

4. Consequences of non-payment, clear legal consequences of non-payment and possible adverse effects.

(2) Matters needing attention in mailing letters:

1. The contact person and telephone number of the other party must be filled in correctly. If there is an agreement in the contract, such agreement shall prevail. In case of doubt, the legal representative should be filled in. If the known address is inconsistent with the registered address or the mailing address published in the annual report, it is recommended to mail one copy to each address.

2. Date Fill in the actual mailing date and indicate "receipt required".

3. Send it by EMS or registered mail and keep the mailing receipt.

4. Write clearly the subject of the letter on the name of the internal parts, such as "Letter about * * requesting to cancel the contract/pay for the goods", and take photos when the mailed documents are half packed in a bag to ensure that the contents of the internal parts and the express delivery information can be seen in the photos. # Does not specify that the mailed items are "dunning letters" have the effect of interrupting the limitation of action? #

5. Check the delivery status of express delivery in time, such as: the recipient is not at the address, refuses to accept, and the returned goods are properly delivered. If the goods are returned, the returned original (the envelope is unopened) must be kept, and the receiving information is its legal address and legal representative. Rejection will not affect "delivered".

6. In addition to EMS mail delivery, there are many delivery methods, such as face-to-face delivery, WeChat delivery, and mail delivery as agreed in the contract. # Engineering dunning letter #

Step 4: Lawyer's Letter

After repeated dunning is invalid, in order to further pressure the owner and improve the deterrence of dunning # What's the use of lawyer's letter #, you can entrust a lawyer to send a lawyer's letter. Before sending the letter, the project should sort out and consider the following factors:

1. Basic information of the project (contract signing, performance, revenue and expenditure); 2. The status of the project; 3. The project judges the advantages and disadvantages of sending letters at this stage; 4. The attraction of sending letters.

The fifth step is renegotiation (headquarters participation)

Back at the negotiating table, the leaders of the company headquarters and the owners will discuss with each other, establish a guarantee mechanism for sustainable repayment, and make a repayment plan. Negotiations are not necessarily at the negotiating table.

Possible repayment plan: 1. Debt transfer; 2. Debt offset; 3. New debt settlement; 4. Debt confusion; 5. Pay off debts with non-cash assets; 6. Financing debt reduction, etc.

The reasons for dunning are mostly objective reasons such as migrant workers and maintaining stability, while the subjective reasons of the owners are less (from the perspective of the owners).

Stop working (stop working after decision)

Use shutdown to put pressure on the owner, but the following conditions must be met:

1. The owner breaches the contract and collects the evidence of the owner's breach of contract.

2. The shutdown shall conform to the procedures and be decided by the company.

Write a letter and stop working first.

4. Protect the completed project, confirm the completed work before shutdown and protect it.

If the above conditions are not met, we may be regarded as stopping work without authorization, and may be liable for breach of contract, including increased expenses and delayed construction period, and compensate the owner for the losses.

Step 7: Public opinion and pressure from superiors

1. Help various information processing platforms: citizen hotline12345; Labor inspection12333; People's government online complaint platform, industry authorities, etc.

3. Joint cooperation units, subcontractors with resources and intermediaries put pressure on the owners.

4. If the owner is in arrears with our project payment for a long time, but needs to apply for a construction permit for another new project, the "migrant workers' representative" can feedback the owner's arrears to the issuing department, and the construction permit for the new project will not be issued if the funds are not in place.

Legal basis: Article 23 of the Regulations on Ensuring Wage Payment for Migrant Workers stipulates that the construction unit shall arrange funds to meet the construction needs. No construction project can be started without meeting the funding arrangements required for construction; If it is necessary to apply for a construction permit according to law, the competent department of engineering construction in relevant industries shall not issue a construction permit.

"Opinions of General Office of the State Council on Comprehensive Treatment of Wage Arrears of Migrant Workers" (Guo Ban Fa [2065 438+06] 1No.), the relevant departments shall not approve the newly started projects of the construction units that have been in arrears for a long time.

In addition, Beijing, Yantai and other housing construction departments clearly issued a document that if the construction unit is in arrears with the project payment, it is not allowed to apply for a new construction permit.

Litigation/arbitration

After careful analysis and weighing the pros and cons, we can consider taking litigation and arbitration to demand payment for the project.

Benefits: 1 Litigation/arbitration is a legal and final way of debt collection, which is thorough and compulsory; 2. Considering the pressure of reputation, implementation and assessment, the owner may choose to settle the dispute as soon as possible.

Disadvantages: 1 The procedure is complex, the cycle is long, the litigation result is unpredictable, and it may be difficult to implement; 2. Bad relationship with the owner will affect the follow-up cooperation between the two parties.

Step 9: Termination and Exit

The termination of the contract should be based on the contract or legal provisions.

Right to terminate the agreement: if one party delays payment for several days as stipulated in the contract, the observant party has the right to terminate the contract and obtain corresponding compensation or compensation.

Legal rescission right: Article 563 of the Civil Code, the parties may terminate the contract under any of the following circumstances: (1) the purpose of the contract cannot be achieved due to force majeure; (two) before the expiration of the time limit for performance, one party clearly indicated or indicated by his own behavior that he would not perform the main debt; (three) one party delays the performance of the main debt and fails to perform it within a reasonable period after being urged; (4) One of the parties delays the performance of debts or commits other breach of contract, which makes it impossible to achieve the purpose of the contract; (5) Other circumstances stipulated by law.

Pay strict attention to the termination procedures agreed in the contract to avoid being held liable for breach of contract because the termination procedures are illegal.

Step 10 migrant workers (can be used in the first nine steps)

Due to the owner's failure to pay in full, migrant workers demand wages: Article 20 of the Regulations on the Payment of Wages for Migrant Workers stipulates that if the construction unit fails to pay the project funds in time as agreed in the contract, the construction unit shall advance the wages of migrant workers to the extent of the arrears of project funds. Urge the owner according to this clause. # Migrant workers beg for wages #

The above is all that we enthusiastically share, but the project situation is more complicated. Therefore, we must take targeted measures to ask the owner for the project payment according to the actual situation of the project, and grasp the key points of the owner (such as construction period, quality requirements, cooperation inspection, data submission, etc.). ) and key figures, not necessarily in strict accordance with the "ten-step" order. In the process of project implementation, we should rationally use dunning means, take measures to fill the cash flow of the project, realize professional support and value creation, and create benefits through management.

I'm Kobayashi, and I have rich practical experience in real estate and construction. I hope my sharing can bring you gains while reading.

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