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ກົດໝາຍ, ນະໂຍບາຍ ແລະ ຄຳແນະນຳ

Penalty Measures for Violations by Foreign Contracted Engineering Enterprises (Trial)

Scope of Application

Guidelines for contractors operating overseas.


Offers basic measures to improve the management of foreign contracted projects, enhance supervision during and after project evaluations, and standardize operations. Stipulates standards and procedures to penalize contractors in violation of the measures.

General Key Points

Contractors could violate the law by: 

  • Failing to carry out project filing in accordance with relevant governmental requirements or the China International Contractors Association's (CHINCA) requirements.
  • Disobeying or failing to implement coordination decisions with government departments.
  • Leaking information about the coordination process or industry secrets and endangering foreign relations or industry interests.
  • Subcontracting projects to Chinese-funded enterprises to obtain improper benefits.
  • Ignoring relevant Chinese governmental regulations and industry norms, disrupting the market price of foreign contracted projects, or disrupting the order of market operations.
  • Failing to strictly observe host country laws and regulations during project implementation. 


Contractors’ Coordination Committees should: 

  1. Determine the appropriate punishment for companies based on the severity of each violation.
Key Points on Stakeholder Engagement

Contractors could violate the law by: 

  • Misreporting the progress of their projects, providing false records, or exaggerating corporate qualifications and capabilities.
Key Points on Environmental and Social Impact Assessment

Contractors could violate the law by: 

  • Allowing social and environmental damage to occur.
  • Failing to pay attention to project quality and safety management.
    • Not strictly implementing relevant standards and regulations for quality and safety management.
    • Allowing quality or safety accidents to occur during project implementation.
Applies to
April 2018
China International Contractors Association (CHINCA)
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Links to Relevant Laws, Policies, & Guidelines