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Construction Law of the Peoples Republic of China (3)

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          CHAPTER VII LEGAL RESPONSIBILITIES
Article 64 Construction enterprises, which act in violation of the
stipulations of this Law to start construction operation without
construction permit or at the time when the application for construction
operation has not yet been approved, shall be ordered to correct
themselves. Construction enterprises of which construction projects can
not meet the requirement for starting operation shall be ordered to stop
construction operation and may be imposed fine penalties.
Article 65 A contract awarder who contracts projects to unqualified
contractors or contract projects by dividing the projects into different
parts in violation of the stipulations of this Law shall be ordered to
correct himself and shall be imposed fine penalties.
An organization which exceeds its level of qualification to contract
projects shall be ordered to stop the illegal activities and imposed
fine penalties, and can be ordered to stop business operations for
rectification, with its qualification level reduced. An organization
found to have serious violations shall be revoked business license, with
all its illegal incomes confiscated.
An organization which contracts projects without a certificate of
qualification shall be outlawed and imposed fine penalties, with all its
illegal incomes confiscated.
An organization which has obtained a certificate of qualification
through cheating shall be revoked the certificate and imposed fine
penalties, and shall be prosecuted for criminal liabilities according to
law for any crimes committed.
Article 66 A construction enterprise which transfers or lends its
certificate of qualification to others or which allows others to
contract projects in its name shall be ordered to correct itself and
imposed fine penalties, with all illegal incomes confiscated. It can
also be ordered to stop business operations and to have its level of
qualification reduced. An enterprise found to have serious violations
shall be revoked the certificate of qualification. The construction
enterprise and the organization or individual which has used the name of
the construction enterprise shall assume the associated liabilities for
losses incurred from the sub-par quality of the contracted project.
Article 67 A project contractor which subcontracts the contracted
project in violation of the stipulations of this Law shall be ordered to
correct the situation, imposed fine penalties, have all illegal incomes
confiscated, and can be ordered to stop business operations and lower
the level of qualification. A contractor found to have  serious
violations shall be revoked the certificate of qualification.
The contractor which has violated the above clause and the subcontractor

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