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Provisional Rules on the Administration of Foreign Enterprises Engaging in Design Activities for Construction Projects within the People's Republic of China (the "Rules")

Construction Design

关于外国企业在中华人民共和国境内从事建设工程设计活动的管理暂行规定

Provisional Rules on the Administration of Foreign Enterprises Engaging in Design Activities for Construction Projects within the People's Republic of China (the "Rules")

Issued: May 10, 2004

Effective: June 10, 2004

Issuing Authority: The Ministry of Construction

Main Contents:  The Rules govern the cross-border supply of preliminary design (basic design) and/or construction documents (detailed design) services, excluding the schematic design before the preliminary design.  In order to provide the above mentioned services, foreign enterprises are required to cooperate with at least one Chinese design enterprise, who must have acquired Chinese qualifications for construction project engineering and design.  Foreign design enterprises may only undertake those design activities within the scope of the qualification of their Chinese partner(s). 

Details are given regarding: the contractual documents that are required for the cross-border supply of design services by foreign firms; the preliminary qualification assessment for foreign design enterprises involved in Sino-foreign cooperative design projects and the related documents; and filing of all the aforementioned documents for record.  

To provide design services within the PRC, foreign design enterprises must comply with the mandatory construction standards and requirements regarding the preparation of construction documents promulgated by the Chinese Government.  Moreover, the Rules also indicate that foreign design enterprises should charge service fees using PRC design fee standards as a reference, although the effect of such stipulation on actual practice is uncertain.