Construction in China

Have you been thinking about construction opportunities in China..read this from Helen Chang and friends from Pinsent Masons.......

Rules for Foreign-Invested Construction Engineering Design Enterprises Contributed by Pinsent Masons March 19 2007

On January 5 2007 the Ministry of Construction and Ministry of Commerce issued the Implementation Rules to the Administrative Regulations on Foreign-Invested Construction Engineering Design Enterprises following a draft of the rules issued by the ministries in October 2006. The rules provide guidance on the implementation of the Administrative Regulations on Foreign-Invested Construction Engineering Design Enterprises (Decree 114). One of the most important implementation measures relaxes the qualification requirements for foreign service providers. Article 15 of the decree requires that foreign-invested design enterprises (FIDEs) meet the criteria applicable to domestic design enterprises. In addition, the China-registered foreign service providers in a wholly foreign-owned FIDE must represent at least one-quarter of the total number of registered architects or engineers required under the qualifications; in the case of a Sino-foreign joint-venture FIDE, China-registered foreign service providers must make up at least one-eighth of the total number of registered professionals. These requirements have been extremely difficult for FIDEs to satisfy because China does not have a system for registering foreign-qualified architects or engineers. The rules allow a FIDE to meet these requirements by using China-registered architects or engineers or Chinese professionals with design experience in the relevant sectors. Other provisions of the rules include the following: A FIDE is allowed to use a minimum of two overseas projects in its first application for a skill qualification certificate in order to satisfy the track record requirements; one of the projects must have been undertaken in the foreign investor's home country or region. However, the FIDE must provide its track record for at least two projects undertaken in China for any subsequent upgrading of the certificate. Individual foreign service providers must be registered as architects and engineers in their home countries and must have a permit allowing them to work in China. If the foreign service providers in a FIDE cannot satisfy the six-month residency requirement under Article 16 of the decree in connection with the FIDE's application for the skill qualification certificate, this requirement may be waived. Documentation and information evidencing the track records and qualifications of FIDEs and individual foreign service providers - including project contracts and completion certificates for FIDEs and diplomas, permits, professional qualification certificates and certificates of good standing for individual foreign service providers - are set out in Article 3 and in the appended forms to the rules. The professional qualification certificates must be verified by the relevant professional qualification registration centre of the Ministry of Construction. The rules also apply to service providers from Taiwan, Hong Kong and Macao. For further information on this topic please contact Helen Chang or Hew Kian Heong at Pinsent Masons' Shanghai Office by telephone (+86 21 6321 1166) or by fax (+86 21 6329 2696) or by email (helen.chang@pinsentmasons.com or hew.kheong@pinsentmasons.com). Alternatively, contact John Bishop or George Luo at Pinsent Masons' Beijing office by telephone (+86 10 8519 2323) or by fax (+86 10 8519 2328) or by email (john.bishop@pinsentmasons.com or lin.luo@pinsentmasons.com). The materials contained on this website are for general information purposes only and are subject to the disclaimer.