Abstract

Construction industry is undoubtedly one of the fastest-growing industries in China. But, due to its inadequate technique, the operation of this industry is not standardized. Its affiliated business causes confusion. The operation of the whole industry is at a series of civil, administrative, and criminal legal risks, because the affiliated party usually does not have the corresponding qualifications. All risks need to be resolved and prevented in three aspects. Firstly, the legal system for the qualification management should be improved and the internal management of the enterprise should be promoted. Secondly, unreasonable prohibitions should be changed. And thirdly, the insurance system of the industry should be perfected.

Highlights

  • With development of reform and opening up, the construction industry has unquestionably become the pillar industry in China at present

  • Because the technical specifications in the construction industry is relatively low, many problems happened behind the rapid development of this industry, for example, the technology lags behind, low production efficiency is low, the legal system is not perfect and the industry is not regulated to run

  • For the affiliated business’ operation ways, it will bring a series of legal risks in nature

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Summary

Introduction

With development of reform and opening up, the construction industry has unquestionably become the pillar industry in China at present. According to the relevant provisions of the Building Ordinance 建筑法, it is regulated that they will accept various degree of administrative penalty if the party awarding the contract gives the construction project to the contractor who has not the relevant qualification and the project that the contractor unit have contracted are subcontracted or illegal subcontracted, such as to be ordered to make their corrections, to be fined, to be ordered to suspend their business for rectification, to forfeit their illegal incomes, to lower their qualification level, to revoke their licenses and so on (Gan Xianshuang & Zhao Peng, 2013) It would bring the risk of second time punishment for the civil dispute in the construction industry. All will provide an opportunity for crime (Zhonghua Renmin Gongheguo Jianzhufa, 2005)

The Origin and Characteristics of the Affiliated Business
The Way of Thinking to Govern the Affiliated Business
Conclusion

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