37 Construction Enterprises ‘Business Licenses Revoked in the Second Half of 2014

According to the bulletin released recently by the Ministry of Housing and Urban-Rural Development of the P.R.C. (the “MOHURD”) concerning the investigation of lawbreaking behaviors of construction enterprises and registered practitioners by localcompetent authorities of housing and urban-rural development in the second half of 2014, there were12,335 construction enterprisescommitting illegal behaviors, and among them, 37 construction enterprises are punished by revoking licenses; and there were 1,729 registered practitioners committing illegal behaviors, and 12 of them got their qualification revoked.

To strengthen the supervision of construction market and regulate operation order, the local competent authorities have increased their efforts on the investigation of illegal activities in construction market and on the punishment for various illegal behaviors of construction companies. As the bulletin shows,12,335 construction enterprises all over the country were involved in illegal behaviors according to the results of investigation by the local competent authorities in the second half of 2014, including 394 engineering survey and design enterprises, 10,161 construction enterprises, 1,631 project supervision enterprises, 135 bidding agencies and 14 design and construction enterprises. 37 of those enterprises and agencies ended up with their business licenses revoked, accounting for 0.30%; four of them were degraded in operation qualification, accounting for 0.03%; 318 were suspended for rectification, accounting for 2.57%; 3,087 werewarned or ticketed, accounting for 25.03%; 708 lost their qualifications, accounting for 5.74%; 1,289 got their qualification withdrawn, accounting for 10.45%; 5,991 were reprimanded publically, accounting for 48.57%; 277 got their safety production licenses withheld, accounting for 2.25%; and 624 were required to suspend bidding activities, accounting for 5.06%.

1,729 registered practitioners were found to have committed illegal behaviors by the local competent authorities, including 950 registered constructors, 531 registered supervision engineers, 191 survey and design engineers and 57 registered architects. 12 of those practitioners were disqualified for practicing, accounting for 0.70%; 203 were punished by stop practicing, accounting for 11.74%; 148 were warned or ticketed, accounting for 8.55%; and 1,366 were reprimanded publically, accounting for 79.01%. (China Construction News)