Abstract: in recent years, China's construction industry has developed rapidly and become a pillar industry of the national economy. However, due to the immature development of the construction market and the imperfect credit mechanism, the problem of project payment arrears is very serious. The problem of project payment arrears in the construction market has become a hot topic in the current social and economic life. Although the problem of project payment arrears has improved in recent years, the problem is still serious. The default of project funds has long plagued the normal production and operation activities of construction enterprises, causing difficulties in capital turnover of construction enterprises, affecting the normal operation of production and operation, and also having a harmful impact on the normal operation of social economy.
Key words: project payment in arrears; Bidding; Construction market.
In recent years, every Spring Festival in the construction market, there will be some phenomenon of arrears of migrant workers' wages. The problem of arrears of project funds in the construction market has become a hot topic in the current social and economic life. The spread of this problem has not only seriously affected the smooth implementation of the project construction, damaged the social and economic order, worsened the social credit environment, but also led to the aggravation of enterprises' Arrears of farmers' wages, affecting social stability. Although the problem of project payment arrears has improved in recent years, the problem is still serious. Arrears of project funds cause difficulties in capital turnover of construction enterprises and seriously affect the normal operation of production and operation. The author talks about his own views on the causes and solutions of the current arrears of project funds in China's construction market.
The basic situation and characteristics of project payment arrears in the construction field in China.
(1) Over the years, the amount of project funds in arrears has increased exponentially. The amount of project funds in arrears in the construction field has intensified, and the scale of arrears has increased year by year. It is difficult to collect the arrears in the construction field, and the phenomenon that the project funds are not paid back for a long time is becoming more and more serious.
(2) It is quite common for construction enterprises in China to be in arrears of project funds, which is mainly reflected in the huge amount of arrears and the rapid growth momentum, which has a very bad impact on economic development and social stability.
2. Reasons for project payment arrears and project payment arrears can not be solved.
2.1 main surface causes.
(1) The construction fund is insufficient, the project fund is not implemented, and the project budget is inaccurate.
(2) After the start of the project, the price of raw materials increased or the original design scheme changed, resulting in an additional budget and unresolved contradictions between the two parties.
(3) The reason is that the audit of project final accounts took too long, and some were delayed for as long as two years.
2.2 deep root causes.
2. 2. 1. Construction project funds are not available.
Various national regulations have always emphasized that construction projects without project approval and funds have not been implemented cannot be started. However, some government departments and real estate developers, regardless of their existing funds, have engaged in project construction and real estate development, and have defaulted on a large amount of project funds. I have been engaged in the field of construction for a long time. I found that the current government departments are keen on building the so-called "image project" and "political achievement project". In the process of real estate development, real estate enterprises expand the development scale. When the construction funds are not in place, they start construction in violation of the national construction procedures, resulting in the phenomenon of defaulting on the project funds of construction enterprises.
2. 2. 2. Imperfect bidding system for construction projects.
According to national regulations, construction enterprises shall be selected through bidding for projects with construction funds of more than 500000 yuan. However, according to the author's years of bidding experience, in the prequalification of construction project bidding, the construction unit privately requires the construction enterprise to pay the project fund in advance to participate in the bidding, and takes the project fund in advance as one of the conditions for participating in the bidding (generally, the construction enterprise is required to pay the fund in advance until the completion of the basic works of the construction project). If the construction enterprise does not advance funds, it will not be given the opportunity to bid. In order to participate in the bidding, construction enterprises generally promise to advance the project funds during the construction process. Once winning the bid, the construction enterprise will bear the pressure of paying the enterprise's own operating funds in advance, which will also leave behind problems for the future project funds that are not easy to recover, so that the economic benefits of the construction enterprise cannot be guaranteed, and the construction enterprise will default on the wages of migrant workers.
2. 2. The government default behavior constitutes a major obstacle to the governance of default.
At present, China's construction project legal person system is not perfect, the responsibility of construction project legal person for project and fund planning, construction implementation, production and operation and investment risk has not been fully implemented, and there is a lack of necessary constraints on the behavior of construction project legal person. In particular, the integration of "investment, construction, supervision and use" of government projects, and the government's market behavior is hardly subject to any restriction. As a result, some local governments rely on their power to carry out project construction, resulting in arrears, in the absence of funds or a large number of fund gaps.
Due to the lack of effective market supervision and restriction on government projects, and the lack of an equal market subject relationship between construction enterprises and the government, regardless of whether the funds are in place, enterprises have to complete the project as a political task and advance funds. As a result, most construction projects have a large number of arrears. The harm caused by the government's arrears of project funds to the construction enterprises is not only in the amount of arrears, but also in contributing to the spread of arrears in the construction market, increasing the difficulty of governance, especially making it difficult for the government to deal with arrears.
3. Adverse impact on all aspects of the society caused by arrears of project funds.
Restrict the operation of enterprises and the development of the industry. China's construction industry is a low profit industry, with a profit margin of less than 2%. The impact of project payment arrears on enterprises is quite serious, which not only affects the turnover of funds, but also greatly increases the loan interest burden and debt ratio, and even some enterprises go bankrupt due to insolvency. In addition, the occupation of a large amount of funds has also affected the updating of production equipment and technological progress of enterprises, resulting in a large loss of enterprise backbone and technical talents.
More seriously, in order to pass on the risk of defaulting on the project payment, some enterprises cut corners on work and materials in the project and lower the quality standards, leaving hidden dangers for the safety of construction products.
Affect the life of employees and endanger social stability. The perennial arrears of huge amounts of project funds have led to a serious shortage of funds in the enterprise. For a long time, the enterprise has been unable to pay the wages, medical expenses, endowment insurance and unemployment insurance of the employees in full and on time, and the fund-raising funds of the employees cannot be returned in full as scheduled. In particular, the phenomenon of arrears of migrant workers' wages has become increasingly serious. The legitimate rights and interests of migrant workers have been seriously infringed, which has led to many incidents such as collective petition, road blocking, bridge closure, sit in and so on. Some migrant workers even use extreme methods such as "jumping from a building" and "suicide" to recover their wages, which has increased social instability.
Destroy the principle of good faith and disrupt the market order. The problem of project payment in arrears has caused a wide chain reaction and vicious circle. On the one hand, a large number of construction enterprises are in arrears of project funds. On the other hand, construction enterprises are in arrears of project funds of subcontracting enterprises, purchase payments of material and equipment suppliers, wages of migrant workers, national taxes and bank loans. The emergence of a large number of "triangle debts" has triggered debt disputes among many heads, resulting in a great distortion of social credit relations. At the same time, it has also covered up the problem of blind construction due to insufficient construction funds, and damaged the normal social and economic order.
4. Some measures to solve the project payment arrears of construction enterprises.
4.1 implementation of construction project funds.
The relevant departments of the state must abide by the relevant approval and review procedures for the feasibility study report of the proposed project of the construction unit, especially for the review of the construction project funds, strictly implement the principle of first implementing the funds and then launching the project, and strictly review the fund implementation of the construction project. For construction projects with insufficient construction funds, the construction permit shall not be applied for.
For the phenomenon that the construction funds are not in place in time due to the review of relevant departments, resulting in the arrears of the project funds of the construction enterprises, it is also necessary to trace the relevant responsibilities of relevant departments and personnel, and prevent the arrears of the project funds of the construction enterprises due to the lack of the construction funds from the source.
4.2 improve the bidding of construction projects.
In the construction market, "too many monks and too few soldiers" determines that the competition among construction enterprises is fierce. The construction units often use their dominant position to make unreasonable provisions on the recovery of project funds in signing construction contracts, resulting in the passive acceptance of construction enterprises, which indirectly causes difficulties for construction units in the recovery of project funds.
National construction management departments at all levels should strengthen the supervision and management of construction project bidding, prohibit some unreasonable practices of construction units in bidding, and put construction enterprises and construction units in a fair, just and open bidding transaction. At the same time, in order to ensure the smooth construction of the construction project, the construction unit, the construction unit and the third party undertaking the guarantee sign a payment guarantee contract to protect the legitimate rights and interests of all parties. In this way, the implementation of the construction funds of the construction unit is supervised legally, so as to protect the legitimate rights and interests of the construction unit.
In order to fundamentally solve the problem of project payment arrears, the author believes that all construction parties must follow the law of the construction market, establish a long-term and effective construction market economic mechanism, speed up the establishment of relevant systems, and finally form a normal construction transaction order that meets the requirements of the law, so as to promote the fair and just development of all construction parties.
While strengthening the standardized operation of the construction market, it is also necessary to standardize the unequal competition behavior of construction enterprises. Let all construction enterprises abide by the national regulations, resist the unreasonable demands of some construction units, so that those builders who violate the principle of fair competition will be punished, withdraw from the competition in the construction market automatically, and maintain a fair and just socialist construction market economic environment.
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