Under what circumstances can the settlement report made by the contractor be used as the basis for settlement?
Under normal circumstances, the project price shall be settled according to the contract, and both parties shall settle after the project is completed and accepted. At the time of settlement, the contractor generally submits the completion settlement report first, which will be reviewed by the employer. However, after receiving the project settlement documents submitted by the contractor, some employers delayed or did not reply, thus achieving the purpose of defaulting on or not paying the project price. This behavior seriously infringes on the legitimate rights and interests of the contractor. In order to stop this illegal behavior, Article 16 of the Management Measures for Construction Contracts and Contract Valuation promulgated by the Ministry of Construction stipulates that the employer shall give a reply within the agreed time limit after receiving the completion settlement documents. Failing to reply within the time limit. The completion settlement document is deemed to have been approved. If the time limit for reply is not clearly stipulated in the contract, it can be considered that the agreed time limit is 28 days. This regulation has played a great role in stopping the illegal behavior of defaulting on project funds and protecting the legitimate rights and interests of contractors. In order to better bind both parties and make this provision of the Ministry of Construction operable, Article 20 of the Supreme People's Court's Interpretation on Applicable Legal Issues in the Trial of Construction Contract Disputes clearly stipulates that if the parties agree that the employer fails to reply within the agreed time limit after receiving the completion settlement documents, it shall be deemed as the approval of the completion settlement documents and shall be handled in accordance with the agreement. The contractor's request to settle the project price according to the completion settlement document shall be supported.