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Construction Law of the Peoples Republic of China (2)

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            SECTION III CONTRACTING
Article 26 The project contracting units shall hold legally-obtained
certificates of qualifications and contract projects within the business
scope as allowed by their level of qualification.
Project contracting units are prohibited from contracting projects
beyond the business scope as allowed by their level of qualification or
in the name of other construction enterprises in any form. Construction
enterprises are prohibited from allowing other units or individuals to
use their own certificates of qualification, business licenses or their
name in any form in order to contract construction projects.
Article 27 Large construction projects or complex construction projects
can be jointly contracted by two or more contracting units. Parties to
joint project contracting shall bear joint responsibilities for the
implementation of the contract.
For joint contracting by two or more units with different levels of
qualification, projects shall be contracted within the business scope 
of the contracting unit with the lower level of qualification.
Article 28 Contracting units are prohibited from subcontracting  the
entire construction projects undertaken by the contracting units to
others and they are prohibited from dividing the entire construction
projects into parts and then subcontracting those parts to others.
Article 29 The overall contracting units can subcontract part of the
projects to subcontractors with appropriate qualifications. However,
except for the subcontracting as specified in the overall contracts,
approval from project owners shall be obtained. With regard to overall
project contracting, the construction of the main structure of the
project shall be completed by the overall contracting units.
The overall contracting units shall be held responsible to project
owners in accordance with the provisions of the overall contracts; The
subcontractors shall be held responsible to the overall contractors in
accordance with the terms of the subcontracting contracts. The overall
contractors and subcontractors shall bear joint responsibilities to
project owners for the subcontracted projects.
The overall contracting units are prohibitied from subcontracting the
projects to units without appropriate qualifications. The subcontractors
are prohibitied from re-subcontracting the sub-contracted projects.
      CHAPTER IV SUPERVISION OF CONSTRUCTION PROJECTS
Article 30 The State adopts the system of project  construction
supervision.
The State Council can stipulate the scope of construction projects
subject to compulsory supervision.
Article 31 Construction projects subject to supervision shall  be
supervised by project supervising units with appropriate qualification

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