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ARTICLE · 09 AUGUST 2011

Owner Tips for Managing Construction Projects in China

Looks at local rules and local authorities and the role they can play in a construction project.

ChinaReal Estate and Construction
Holly Blackwell
Holly Blackwell

Whether you are building a manufacturing plant, a petrochemical plant or just fitting out an office, local rules and local authorities can play a significant role in your project. Local regulations and practice varies widely, from designer and contractor qualifications to requirements for building completion. Finding the right contractors for design and construction can make the difference in completing on time and on budget.

Here are some tips to avoid common pitfalls:

1. Ensure the designer and contractor are licensed to undertake the scope and scale of the project

A significant pitfall to avoid when engaging in a construction project in China is to ensure the design firm and contractor are qualified for the project. PRC law strictly regulates entities which undertake domestic construction projects. Before engaging in design and construction activities, an entity must be sufficiently licensed. The services to be provided must not exceed the scope of the license.

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