CHINA Law and Practice Contributed by: Nancy Zhang, Xiaoying Tian, Qian Gu and Liangqian Ying, JunHe LLP
has found that the lease has been terminated, the landlord may apply for an enforced evic - tion based on a valid judgment. In practice, the period required for a court to make a judgment and complete the enforcement procedure varies in different localities but is usually longer than a year. 6.22 Termination by a Third Party A third party who is not a party to the lease can - not generally terminate the lease because it is not a party to the lease. However, under certain circumstances, third parties may make it impos - sible for the lease to be performed or fulfilled, resulting in early termination of the lease. 6.23 Remedies/Damages for Breach In addition to the collection from the tenant of outstanding rent and tenant eviction, the par - ties may agree, in the lease, upon the amount of liquidated damages in the event of a tenant breach and termination of a lease. However, if the amount of the liquidated damages agreed on by the parties exceeds 130% of the losses sustained, the party concerned may apply to the court or arbitration tribunal for an appropriate reduction in liquidated damages. Remaining rent is not generally supported unless it falls within the cap of 130% of the total losses incurred by the landlord, same as the security deposits, whether in the form of cash or bank guarantee, held by the landlord. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most common pricing structures for con - struction include: • fixed quota pricing ( 工程定额计价 );
• bill of quantities pricing ( 工程量清单计价 ); • fixed lump-sum price ( 固定总价 ); • fixed unit price ( 固定单价 ); • cost plus fee ( 成本加酬金 ); and • adjustable price ( 可调价 ).
These are not mutually exclusive and sometimes, multiple pricing structures might be included in
the same contract. Fixed Quota Pricing
Fixed quota pricing means that the construc - tion price, in accordance with the bidding docu - ments, is a total of: • the direct construction cost calculated based on the unit labour price, material price, equip - ment price and other information formulated by the relevant administrative authorities and the market price for the same during the same period; • the indirect construction cost (including man - agement salaries, office expenses, employ - ees’ insurance); • profit; and • taxes. Bill of Quantities Pricing Bill of quantities pricing means that the aggre - gate of the price for each component of the con - struction work, which is calculated based on the integrated unit price and quantity of such com - ponent, is determined based on the construc - tion drawing and construction management and engineering skills. Fixed Lump-Sum Price With a fixed lump-sum price, the total construc - tion price is a fixed amount which is not adjust - able within the agreed work scope and condi - tions.
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