The subcontracting of construction projects involved more than 2 million yuan, and the court presided over the final settlement agreement between the two parties

2024-04-27

The subcontracting of construction projects involved more than 2 million yuan, and the court presided over the final settlement agreement between the two parties

Shanghai Lixiaohua Law Firm



Case lntroduction

The plaintiff Shanghai Weida Company and the defendant Shanghai Jianye Company signed the "Shanghai D Park Project Subcontracting Contract", and Weida Company undertook the subcontracting project of Shanghai D Park. After the contract was signed, Weida Company fulfilled its obligations in accordance with the law, completed the installation project of Shanghai D Park, and fulfilled the contract. The owner officially declares the actual completion of the project. The warranty period for this project has now expired. However, Jianye Company still owes Weida Company the final payment of the contract, contract fees, and additional engineering costs. Weida Company has repeatedly urged the defendant to pay the engineering fees, but the defendant has refused to pay, which constitutes a breach of contract. It should continue to fulfill its payment obligations in accordance with the law and bear the liability for breach of contract to the plaintiff. Shanghai Li Xiaohua Law Firm, as the long-term legal advisor of Weida Company, has been entrusted to appoint Wang Lin, the deputy director of the company law profession and lawyer Ma Dehui, who have been professionally assessed and certified by the Shanghai Bar Association, as the acting lawyers to file a lawsuit with the Pudong New Area People's Court in Shanghai.




lawyer Agent

Lawyer Wang Lin and Lawyer Ma Dehui listened to the introduction of the factual situation by Weida Company and studied the evidence materials provided by Weida Company. They summarized the plaintiff's lawsuit request as follows:

1. Order the defendant to pay the plaintiff a total of over 2 million yuan for the project;

2. Order the defendant to pay interest on overdue project payments to the plaintiff;

3. Order the defendant to bear the litigation costs.


During the trial, the representative lawyer believed that:

1. The contract signed between Weida Company and Jianye Company is legally established, protected by law, and has legal binding force on all parties involved;

2. Weida Company fulfilled the "Shanghai D Park Project Subcontract Contract" as agreed, but Jianye Company owes Weida Company the final payment of the contract, additional fees, and some project costs, which constitutes a breach of contract and should bear the liability for breach of contract according to law.




Court ruling
During the submission of the defense, the defendant Shanghai Jianye Company raised objections to the jurisdiction of this case, stating that Article 13 of the "Shanghai D Park Project Subcontract Contract" signed by the plaintiff and defendant stipulates that "in the event of a dispute arising during the performance of the subcontract, if the parties cannot resolve it through consultation or mediation, they shall file a lawsuit with the Changning District People's Court of Shanghai in accordance with the law". After examination, the Pudong Court believes that this case is a dispute over a construction project subcontracting contract and should be governed by the jurisdiction determined by the real estate dispute, that is, the exclusive jurisdiction of the people's court where the real estate is located. The construction site of the disputed project between the plaintiff and the defendant in this case is Shanghai International Tourism Resort, which falls within the jurisdiction of this court. Therefore, this court has jurisdiction over this case in accordance with the law. Based on this, in accordance with Article 33 (1) and Article 154 (1) (2) of the Civil Procedure Law of the People's Republic of China, and Article 28 (2) of the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China, the ruling is as follows: dismiss the objection raised by the defendant Shanghai Jianye Company to the jurisdiction of this case. During the trial process in Pudong Court, through mediation presided over by the court, both parties voluntarily reached the following agreement:

1、 The defendant Shanghai Jianye Company paid the plaintiff Shanghai Weida Company more than 1.91 million yuan in project funds;

2、 The above-mentioned project funds will be paid in six installments (see the Settlement Agreement for specific payment methods);

3、 The plaintiff Shanghai Weida Company shall submit 3% VAT ordinary invoices to the defendant Shanghai Jianye Company based on the current settlement amount. If the invoice is delayed by one day, the payment time shall be correspondingly postponed by one day;

4、 If the defendant Shanghai Jianye Company fails to pay the corresponding amount in full or deliver the bill of exchange within the prescribed date, the plaintiff Shanghai Weida Company may apply to the people's court for compulsory enforcement of all unpaid amounts, and the defendant Shanghai Jianye Company shall also pay liquidated damages and interest to the plaintiff Shanghai Weida Company.

Case Notes


Honesty is the knot of the world. Honesty is an important principle for maintaining the order of the market economy, and it is regarded as a crucial cornerstone of the market economy. For enterprises, integrity is not only a code of conduct that must be practiced, but also an intangible asset that can bring practical benefits to themselves. To increase the cost of dishonesty, benefit those who keep their promises everywhere, make it difficult for them to move forward, and create an atmosphere of honor and shame for those who keep their promises throughout society. Honesty is not only a moral norm, but also widely established as an important legal norm, and the principle of honesty is even regarded as the most important provision in modern civil law. Always remember that the moral bottom line cannot be touched and the legal red line cannot be crossed, strengthen the awareness of compliant operation, and enhance the level of honest operation.

Article 26 of the Interpretation of the Supreme People's Court on the Application of Law in the Trial of Construction Contract Disputes (I) stipulates that if the parties have agreed on the standard for calculating the interest on the unpaid project price, it shall be handled in accordance with the agreement. If there is no agreement, interest shall be calculated based on the same period and similar loan interest rates or the same period loan market quoted interest rates. Article 27: Interest shall be calculated and paid from the date of payment of the project price. If there is no agreement or unclear agreement on the payment time between the parties, the following time shall be deemed as the due payment time: (1) If the construction project has been actually delivered, it shall be the date of delivery; (2) If the construction project has not been delivered, the date of submission of the completion settlement documents shall be considered; (3) If the construction project has not been delivered and the project price has not been settled, it shall be the date on which the parties file a lawsuit.



(文中单位、人物均化名)

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