Jiangbei G [2017] No. 4

All subdistrict offices in Jiangbei, People’s Government of Cicheng Town, and departments and subordinates of the People’s Government of Jiangbei District,

The following opinions are put forth with the purpose of further accelerating the development of the construction industry, to develop a bigger and stronger construction industry, to improve the comprehensive strength and competitiveness of the construction industry in Jiangbei, and to better play the role of the construction industry for the economic and social development in Jiangbei in accordance with the spirit of Opinions on Accelerating the Industrial Transformation and Upgrading of the Construction Industry and on Further Developing Zhejiang Province into a Competitive Construction Province (Zhejiang G [2011] No. 90) and Several Opinions on Further Accelerating the Development of the Construction Industry (Ningbo G [2011] No. 78).

I. To make clear the development goals and play the supporting role of the construction industry

1. General idea: to carry out in-depth implementation of the “Going Out” strategy, to adjust industrial structure, to enhance the strength of enterprises, to innovate system and mechanism, to optimize the development environment, to enhance the comprehensive competitiveness of the industry for realization of a power construction district of Jiangbei, guided by the Deng Xiaoping Theory, the important thought of “Three Represents”, Scientific Outlook on Development, and the “Four Overall” Strategic Layout, and implementing the strategic deployments of “Six Accelerations” (To accelerate developing a power international port, to accelerate developing Ningbo into a modern metropolis, to accelerate the promotion of industrial upgrading, to accelerate developing a smart city of Ningbo, to accelerate development of ecological civilization and to accelerate the improvement of life quality) and the “Double Drivers Four Administrations” Strategy (Reform-driven and innovation-driven; ecology administration, town and city administration, social administration and soft environment administration).

2. Development goals: the scale of the construction industry is to enlarge; the industrial structure is to be more reasonable; the ratio of large scale enterprises is to increase; the market share is to increase; the role of the construction industry for economic and social development is strengthened; the gross output value of the construction industry is to reach 30 billion RMB till Year 2020.

II. To continue promoting industrial transformation and upgrading and to encourage enterprises to develop bigger and stronger

3. To perfect the industrial system of the construction industry; to continue to improve the contracting system based on general contracting taking the lead, professional contracting being the support and labor subcontracting as the basis; to actively explore and encourage EPC contracts; to further develop the industrial system of the construction industry, in which SMEs, large-scale enterprises, comprehensive enterprises and professional enterprises rely on and coordinate with each other for further development; to encourage enterprises to expand their business to the traffic, electric power, water conservancy, railway and other key national investment fields; to encourage enterprises to develop themselves into engineering companies and engineering project management companies, boasting functions of design, procurement and construction; to guide enterprise to extend their services to the real estate, building materials, decoration, equipment manufacturing, maintenance service, large-scale component and special transportation for broader space for development; to actively support and nurture enterprises who provide services for the construction industry on investigation and design, bidding agency, project supervision and engineering quality inspection.

4. To encourage enterprises to develop bigger and stronger. To encourage and support enterprises to develop bigger and stronger by way of combination, recombination, merger, shareholding and business conglomeration; to actively guide enterprises of the construction industry to integrate resources, to accelerate nurturing a group of large scale construction enterprises of large amount of asset, good financing capacity, strong market competitiveness and high level of qualification; to guide and support SMEs to develop into more professional ones with better technologies; to accelerate the development of labor subcontracting enterprises, to vigorously promote the pace of corporate listing financing; to encourage enterprises to integrate various resources to develop into a higher level and explore the professional areas. As for construction enterprises developing into the super level from the first level, a total of 500,000 RMB would be granted to the general contracting enterprise as a reward; as for enterprises developing into the first level from the second level, a total of 300,000 RMB would be granted to the general contracting enterprise as a reward and a total of 200,000 RMB would be granted to the professional contracting enterprise as a reward.

5. To set up and improve the assessment and evaluation mechanism. To carry out assessment and selection of leading enterprises, major enterprises, excellent “going out” enterprise and outstanding enterprises and excellent entrepreneurs of the construction industry once every two years in Jiangbei District, and recommend the best for assessment and selection of excellent construction enterprises and entrepreneurs in Ningbo. To strengthen scientific selection and recognition, to give full play to the leading role of the industry, and to comprehensively enhance the overall competitiveness of the industry. To increase the number of leading construction enterprises, key enterprises, advanced “Going Out” enterprises and excellent enterprises to 10, 10, 10 and 15 respectively till Year 2018, adding up to 45 in total. Newly entitled leading enterprises and key enterprise of the construction industry in Ningbo are able to enjoy another 150,000 RMB and 100,000 RMB as rewards respectively award by Jiangbei District, apart from the rewards awarded by the City of Ningbo, as for excellent entrepreneurs of the construction industry, they are to enjoy an extra 100,000 RMB each awarded by Jiangbei District.

6. To broaden financing channels for enterprises. To actively guide finance institutions to increase the line of credit, simplify loan approval procedure and put forth appropriate preferential interest rate for growing, profitable and trustworthy construction enterprises. To innovate financial products and services, and to solve enterprises’ capital needs by way of pledge of project contracts, receivables, building materials, engineering projects, equity and patent rights. To guide insurance institutions and banks to cooperate for the development of credit insurance and mortgage upon receivables and suitable for the construction industry.

7. To encourage enterprises to develop quality projects and guide them to keep in mind developing their own brands. A main contractor would enjoy a reward of 1 million RMB in case its project wins “The Luban Prize for Construction Project”, “Tien-yow Jeme Civil Engineering Prize”, or “National Gold Medal for Quality Engineering”; and a reward of half a million would be granted to a main contractor, in case its project wins “National Silver Medal for Quality Engineering” or “Qianjiang Quality Project Prize”.

Professional contractors are to enjoy half a million of reward each in case their projects win “The Luban Prize for Construction Project”, “Tien-yow Jeme Civil Engineering Prize”, or “National Gold Medal for Quality Engineering”; 200,000 RMB of reward would be granted to professional contractors each in case their projects win “National Silver Medal for Quality Engineering” or “Qianjiang Quality Project Prize”.

Managers of projects that win the prize of “The Luban Prize for Construction Project” or “National Gold Medal for Quality Engineering” are able to undertake 2 construction projects simultaneously for 5 years since the date of winning the prize. Managers of projects that win the prize of “National Silver Medal for Quality Engineering” or “Qianjiang Quality Project Prize” are able to undertake 2 construction projects simultaneously for 3 years since the date of winning the prize. Manager of projects that win municipal quality engineering prizes are able to undertake 2 construction projects simultaneously for 1 year since the date of winning the prize.

8. To further improve the bidding system in the field of Engineering construction. To actively explore a bidding supervision system suitable for the management and development of the construction industry. To further deepen the bidding system of the construction industry on categories of infrastructure, housing construction, water conservancy, transportation, urban landscaping, demolition and design, etc. and work out Jiangbei Construction Bidding Management Measures when necessary. Meanwhile, we should strengthen the tracking and guidance of construction enterprises, establish the elimination mechanism, and give full play to the proper role of local construction enterprises in social and economic development.

III. To serve enterprises for their acceleration of market exploration

9. Supporting policies for market exploration of the construction industry. To encourage local construction enterprises to actively participate in government invested and state-owned projects. A limited number of pre qualification system and various evaluation methods shall be formulated for participation in government invested and state-owned projects adopting public bidding methods. To explore a gather-together development mode for leading enterprises, key enterprises, advanced “Going Out” enterprises and excellent enterprises; to actively recommend such enterprises to participate in bidding.

10. To make full use of the Jiangbei Construction Industrial Association. To strengthen the development of Jiangbei Construction Industrial Association and the communication between the Jiangbei Construction Industrial Association and construction enterprises; to provide precise services for construction enterprises to develop better and stronger; to encourage foundation of a variety of associations for the gather-together and coordinative development of construction enterprises in Jiangbei.

11. To continuously improve the construction industrial system. To implement the “Introduction” strategy. Firstly, newly introduced construction enterprises of the first level or super level in Jiangbei are to enjoy subsidies of half a million and a million RMB respectively; introducers of newly introduced construction enterprises, registered in Jiangbei and with qualifications of investment in transportation, electricity, water conservancy, railway and professional areas, are able to enjoy subsidies of 50,000 RMB and 100,000 RMB respectively in accordance with enterprises’ either second or first level. Secondly, for the newly introduced construction enterprises who purchase and lease office buildings for business establishment, a certain amount of subsidies shall be granted in accordance with the contribution of the enterprises in the year in Jiangbei (specific measures shall be formulated separately). Thirdly, newly introduced leading and key construction enterprises are able to enjoy a certain area for them to build up their construction industrialization bases.

12. To implement the “Going Out” strategy. To accelerate the construction enterprises’ market exploration. To carry out appraisal activities for excellent “Going Out” groups and individuals. A one-time 50,000 RMB would be granted to excellent “Going Out” enterprise of municipal level or above. To encourage local construction enterprises to undertake projects out of Jiangbei and a certain amount of rewards would be granted to the enterprises while referring to the contribution of the out-of-Jiangbei project.

13. To strengthen the development of the credit system of the construction market. To guide enterprises to be honest and trustworthy. To build a good faith society and vigorously promote the construction of a credit system of the construction market in Jiangbei. To unite with other departments, including Jiangbei Office, SAT, Ningbo Local Taxation Bureau, SAT, Jiangbei Justice Bureau and Jiangbei Human Resources and Social Security Bureau, for enterprises’ credit evaluation. Enterprises with relevantly higher scores are to enjoy extra rewards, while enterprises with lower scores are to be excluded from priority in getting rewards from a variety of local assessment and evaluation. In case a construction enterprise is found bad behavior in terms of taxation credit, salary distribution and bribes, they are to be included into a “Black List”, which would hinder them from bidding and market access.

To establish a linkage mechanism for various kinds of guarantee, insurance and construction credit system of construction projects and to carry out floating management of various kinds of security deposits so as to lighten the burden on enterprises. Local construction enterprises enjoy a one-level up guarantee rate, as is stipulated in An Announcement of Management Measures (Trial) for Housing Construction and Municipal Infrastructure Construction Project Guarantee Issued by Ningbo Housing and Urban-rural Development Committee while participating in government invested projects. Leading enterprises, key enterprises, advanced “Going Out” enterprises and excellent construction enterprises enjoy a municipal level of guarantee rate of 2%. Local construction enterprises’ engineering performance guarantee and quality deposit can be made by bank guarantee or insurance.

V. To strengthen the construction of incentive mechanism and to promote enterprises’ science and technology innovation

14. To promote development of enterprises’ talent teams. To encourage enterprises to introduce high-level talents, to further increase the incentives for the introduction and cultivation of talents for the construction industry. Qualified enterprises and individuals are able to enjoy relevant policies on talent nurturing and introduction.

To insist in the evaluation principle of performance-oriented and ability-oriented; to appropriately relax the deceleration of corresponding professional technical qualifications for those who have no corresponding qualifications but having rich experience and outstanding performance.

To actively carry out training programs for techniques of employees and the cost of such training programs would be covered by An Announcement of Further Strengthening the Raising, Using and Management of the Fund for Employees’ Education (Ningbo G [2009] No. 177).

15. To encourage enterprises to innovate scientific technologies for acceleration of transformation and application of scientific and technological achievements. To support construction enterprises to improve their self technological innovation abilities, to encourage enterprises to research and develop new products, new technologies and new techniques. To encourage enterprises to actively declare construction standards and draw up industrial standards. In case declarations of provincial and national standards pass through, awards of 100,000 RMB for the provincial declaration and 200,000 RMB for the (first and second authors) of the national declaration are to be granted. To encourage construction enterprises to actively apply new techniques. 100,000 RMB is to be awarded for application of BIM technology in large-scale construction projects, and 50,000 RMB for application of BIM in medium-scale construction projects.

16. To deepen the promotion of industrialization of new type construction in Jiangbei and to promote the development of green construction for industrial transformation and upgrading of the construction industry in Jiangbei. To strictly implement policies on new type construction industrialization in accordance with An Announcement of Several Opinions on Accelerating the Industrialization of New Type Construction Issued by the General Office of Ningbo Municipal People’s Government (Ningbo G Office [2015] No. 99) and the Implementation Opinions (Trial) on the Promotion of Projects for Industrialization of New Type Construction Issued by the General Office of Ningbo Municipal People’s Government (Ningbo G Office [2016] No. 7). Enterprises undertaking new type construction projects in Jiangbei are able to get a subsidy of 200,000 RMB for large-scale projects and 100,000 RMB for medium-scale projects.

To highly support the development of derivative industries of the industrialization of new type construction; to support manufacturing bases of large-scale parts and components, enterprises either manufacturing or lending large-scale assisting equipment with favorable policies on planning, land utilization and tax payment.To attract such derivative industrial enterprises to settle in Jiangbei for the promotion of a new round of development for the construction industry in Jiangbei.

V. Working Requirements

17. To strengthen working responsibilities and service guidances. To continue to strengthen responsibilities of Jiangbei Leading Group Office for Construction Industrial Development, to timely solve all kinds of major problems of the construction industry, to make the support for the development of the construction industry as an index for assessment of local functional departments, local towns and subdistricts. Every unit involved shall unite together, pay great attention to the development of the construction industry, to strengthen researches on the development of the construction industry, to timely adjust measures for the development of the construction industry. To actively pay attention to new rising markets and help enterprises to explore their markets. A variety of policies and measures shall be worked out by Jiangbei Housing and Urban-rural Development Bureau, together with Jiangbei Development and Reform Bureau, Jiangbei Finance Bureau, Jiangbei Office, SAT, and Jiangbei Local Taxation Office, SAT, for scientifically guiding enterprises to develop further, bigger and better.

18. To innovate working mechanism and improve development environment. To set up a special fund, supporting enterprises to develop bigger and stronger, to develop excellent for honors and prizes, to explore potential markets, to enhance qualifications and to innovate scientific technologies. To set up a supporting mechanism for key enterprises, helping enterprises to solve prominent problems during their development. To establish an exchange platform for all functional departments and advertise local construction enterprises for participation in projects out of Jiangbei District.

19. To strengthen advertising and create an environment for development. To strengthen advertising for enterprises to get to know the policy and to make full use of the policy for developing their faith in further development and for guiding enterprises to develop better and faster. To advertise advanced experience and typical cases for the development of the construction industry for creation of a favorable development environment for the industry.

VI. Supplementaries

20. The construction enterprises mentioned in this Document refer to those construction industrial enterprises, registered in Jiangbei and of independent legal entities. Applicants shall submit application forms and materials first and would enjoy subsidies after assessment and evaluation by local departments in charge and experts.

21. Enterprises are not allowed to enjoy the subsidies in case they are involved in tax-related crimes, violations of laws, major accidents on production safety, food safety, environment pollution and product quality, major collective labor disputes and failure in energy saving and emission reduction. If any enterprise cheats for subsidies, full amount of the subsidies will be recovered by local departments in charge and the financial department in accordance with relevant national laws and regulations, and relevant personnel shall be investigated and held legally responsible, and such enterprises’ qualification for subsidy application will be cancelled.

22. The district-level and municipal subsidies that an enterprise enjoys are not supposed to exceed the actual contribution of the enterprise made to Jiangbei District.

23. This Document takes effect on 24 February 2017. If other relevant policies are inconsistent with the present terms, the present terms of this Document shall prevail.

Jiangbei District People’s Government

23 January 2017