This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.
Notice on Issuing the Measures for the Engineering Change Management of Fiscal Investment Projects in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (For Trial Implementation)
All relevant departments:
The Measures for the Engineering Change Management of Fiscal Investment Projects in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (For Trial Implementation)has been approved upon deliberation at the 18th session of the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and is hereby issued to you for your careful implementation. Should any issues arise during implementation of these measures, please directly report the issues to the Urban Planning and Construction Bureau of the Cooperation Zone.
Urban Planning and Construction Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
February 4, 2024
Normative Document No. 2/2024 by the Urban Planning and Construction Bureau
Measures for the Engineering Change Management of Fiscal Investment Projectsin the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (For Trial Implementation)
Contents
Chapter I General Provisions
Chapter II Classification and Approval for Engineering Changes
Chapter III Change Management
Chapter IV Duties and Division of Responsibilities
Chapter V Legal Liability
Chapter VI Supplementary Provisions
Chapter I
General Provisions
Article 1.
Purpose
In order to regulate engineering change management of fiscal investment projects in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Cooperation Zone”), clarify relevant responsibilities, improve approval procedures, effectively ensure project quality, safety, and progress, and rationally and effectively control project investment, these measures have been formulated in accordance with the Government Investment Regulations and relevant laws and regulations, taking into account the actual conditions of the Cooperation Zone.
Article 2.
Scope of Application
These measures apply to engineering projects that are funded by the fiscal budget of the Cooperation Zone and included in its annual investment plan management.
Engineering changes to EPC projects may be implemented in accordance with these measures. Specific details will be further clarified in the bidding documents based on the actual conditions of the projects.
Article 3.
Definition
For the purposes of these measures, the definitions of the following terms are as follows:
1. Engineering change includes two types: design change and project verification.
2. Design change refers to adjustments, modifications, additions, reductions, and cancellations made to the construction design documents confirmed by the construction employer during the performance of the project construction contract (including but not limited to design content, design standards, technical standards, etc.);
3. Project verification refers to situations that arise during the implementation of the project where the actual events deviate from the terms specified in the contract and are not attributable to the construction contractor. This includes project contents not reflected in the construction drawings, not included in the construction budget or budget rates, or those that will incur additional costs, which shall be confirmed by the construction employer..
4. Construction employer refers to the organization responsible for the project construction and management. In projects implemented under the agent construction system, the agent unit shall assume the legal responsibilities of the construction employer in the management of engineering changes.
Article 4.
Regulatory Authorities
The Urban Planning and Construction Bureau of the Cooperation Zone and the Finance Bureau of the Cooperation Zone shall, within the scope of their responsibilities, supervise and manage the engineering changes of fiscal investment projects in the Cooperation Zone in accordance with the law.
Chapter IIClassification and Approval for Engineering Changes
Article 5.
Classification
Engineering changes are divided into the following five categories, managed under an approval system:
1. The following circumstances fall under Category I changes:
(1) Any single change with an estimated cost increase or decrease of RMB 10 million (inclusive) or more;
(2) Any change that affects the total construction period by ninety days (inclusive) or more.
2. The following circumstances fall under Category II changes:
(1) Any single change with an estimated cost increase or decrease ranging from RMB 5 million (inclusive) to RMB 10 million (exclusive).
(2) Any change that affects the total construction period by sixty days (inclusive) to ninety days (exclusive).
3. The following circumstances fall under Category III changes:
(1) Any single change with an estimated cost increase or decrease ranging from RMB 2 million (inclusive) to RMB 5 million (exclusive).
(2) Any change that affects the total construction period by thirty days (inclusive) to sixty days (exclusive).
4. The following circumstances fall under Category IV changes:
(1) Any single change with an estimated cost increase or decrease ranging from RMB 5 hundred thousand (inclusive) to RMB 2 million (exclusive).
(2) Any change that affects the total construction period by ten days (inclusive) to thirty days (exclusive).
5. The following circumstances fall under Category V changes:
(1) Any single change with an estimated cost increase or decrease of less than RMB 5 hundred thousand.
(2) Any change that affects the total construction period of less than ten days.
The estimated cost of a single change refers to the total estimated amount of design change or project verification for the same item.
When the cumulative change amount exceeds sixty percent of the contract contingency fund, Category IV and lower changes will be upgraded to Category III changes; when the cumulative change amount exceeds the contract contingency fund, Category III and lower changes will be upgraded to Category II changes; when the cumulative change amount results in the project construction cost exceeding the budget, Category II and lower changes will be upgraded to Category I changes.
Article 6.
Procedures of Approval
The approval of the engineering change have two stages: the change approval and the change cost review.
The change approval follows the principle of “approval first, implementation later”, and may begin implementation after being approved in accordance with the following regulations, while concurrently conducting the change cost review:
1. The construction employer shall submit the application for engineering changes (including the estimated change amount) to the Urban Planning and Construction Bureau of the Cooperative Zone for change approval, and, if necessary, provide alternative schemes for the changes.
2. If the estimated change amount for a single engineering change increases or decreases by RMB 1 million (inclusive) or more, the construction employer shall submit the change cost review to the Finance Bureau of the Cooperative Zone within one month after the change approval. The period of change cost review for Category II (inclusive) or higher change budget costs may be appropriately extended (up to a maximum of two months after the change approval). If the estimated change amount for a single engineering change increases or decreases by less than RMB 1 million, the construction employer shall submit the change cost review to the Urban Planning and Construction Bureau of the Cooperative Zone within one month.
3. If the amount of the engineering change cost review exceeds the estimated change amount and the category of the change has changed, the procedures for submitting engineering change matters must be re-fulfilled.
Article 7.
Conditions for Changes in Newly-added Project Content
Engineering changes to the newly-added project content for ongoing projects must fulfill the following conditions:
1. The Executive Committee or relevant units has formed a written opinion regarding the proposed changes to the newly added project content;
2. The newly-added project content must be relevant to the original project (the construction employer must provide a discussion and explanation in the application form of engineering change).
Article 8.
Submission of Review Materials
For the approval of engineering change, the following materials should be submitted:
1. Application Form of Engineering Change (Appendix 1);
2. Engineering Change Plan Document;
3. Corresponding construction drawings before and after the engineering change (for design change);
4. Supporting documents for the engineering change;
5. Relevant review opinions and justification documents for the engineering change from the project owner, construction employer, and other relevant parties;
6. Summary table of engineering changes prior to this submission (Appendix 2).
Article 9.
Proposal Documents
The engineering change proposal document shall be prepared in accordance with the design depth of the construction drawings, and shall include, but not be limited to, the following content: the specific locations and details of the engineering changes, the engineering change proposal along with the corresponding technical and economic comparison, the estimated cost documents for the engineering changes, an analysis of the impact of the engineering changes on project scale, safety, construction period, ecological environment, investment, and benefits, as well as any relevant foundational and experimental data associated with the engineering changes.
Article 10.
Solicitation of Opinions
Changes involving significant adjustments to key functions, changes to major building facades, and alterations to major public spaces, such as lobbies and primary traffic areas, as well as changes that affect public safety, the construction employer must solicit opinions from the owners, relevant users, and functional departments in advance.
Article 11.
Re-examination
Changes involving mandatory provisions of engineering construction standards, as well as alterations to the original structural safety, energy efficiency in buildings, and green building practices, shall be reported to the original approval authority for re-examination as required.
If engineering changes require approval from the relevant competent authorities in accordance with regulations, the construction employer shall submit the necessary documentation for approval in accordance with the law.
Chapter IIIChange Management
Article 12.
Principles of Management
The construction employer shall strengthen the management and control of all stages and links prior to the tendering of construction projects, aiming to reduce predictable, foreseeable, and avoidable engineering changes.
The management of engineering changes shall adhere to the principles of “efficient and transparent, reasonable and compliant, strict review, approval before construction, and clear responsibilities”, implementing a “one matter, one change” approach.
It is strictly prohibited to engage in fraudulent activities, disassemble changes, repeat changes, evade approvals, or commence construction without prior approval, as well as any disguised avoidance of design changes.
Article 13.
Information Management
Engineering changes shall be subject to information-based registration management. Changes that have not been registered through the Cooperative Zone’s engineering change supervision platform shall, in principle, not be included in the scope of project settlement.
Article 14.
Project Verification Management
When a project verification occurs, it must be jointly confirmed on-site by relevant personnel from the construction employer, supervision unit, construction contractor, and cost consulting unit.
The on-site verification document must contain clear and detailed content, accurately record the facts, and specify the estimated amount. If necessary, relevant on-site photographic materials shall be attached.
Article 15.
Quality Management
The contents of the engineering changes approved shall be included within the scope of project quality supervision.
Article 16.
Investment Control
In principle, the change in the total investment of the project caused by engineering changes shall not exceed the total investment amount of the approved project budget.
Article 17.
Fiscal Responsibility Status
In cases where the following engineering changes result in an increase in engineering costs, the additional costs shall be covered by fiscal funds. If the required construction period is extended, the construction period shall be correspondingly adjusted:
1. Engineering changes caused by policy adjustments, engineering technical specifications, planning changes, unforeseen hydrological and geological variations, and changes in the surrounding environment;
2. Engineering changes that occur during the implementation phase, requiring the construction employer to alter construction standards, increase or decrease construction content, or change functionality as requested by higher-level departments or the project usage and management units;
3. Engineering changes resulting from force majeure, for which the construction employer is responsible according to the contract or law.
Article 18.
Supplemental Agreement
If a single change or cumulative changes (including the current change) result in an increase in investment exceeding the amount of the provisional sum stipulated in the original contract, a supplemental agreement shall be executed, and the principles for quantity and price adjustments shall be agreed upon in accordance with the requirements of the original bidding documents and the core terms of the original contract.
Article 19.
Payment of Fees
If the changes are approved and in accordance with the terms of the contract or the provisions of the supplementary agreement, the payment for the progress of the engineering changes shall be processed and paid according to the established review procedures. The payment ratio after the budget review for the changes shall not exceed eighty percent of the reviewed amount.
Article 20.
Emergencies
For engineering changes that require emergency rescue operations, the construction employer may, in accordance with relevant regulations, proceed with implementation in advance. At the same time, a written report shall be submitted to the Urban Planning and Construction Bureau of the Cooperative Zone, categorized by the type of change, along with relevant photographic documentation and an explanation of the emergency rescue situation. The procedures for change approval must be completed within one month after the report is submitted; otherwise, the application will generally not be processed.
Chapter IVDuties and Division of Responsibilities
Article 21.
Duties of the Construction employer
The construction employer shall fulfill the following responsibilities regarding engineering change management:
1. During the organization of bidding, the construction employer shall include the requirements of these measures and the responsibilities associated with participating in engineering changes in the project bidding documents and contract clauses, strictly controlling engineering changes and enhancing the standardized management of such changes. Additionally, the construction employer shall manage the review deadlines for change orders, prepare a change order ledger, regularly summarize engineering changes, and keep abreast of the current status of project changes in real time.
2. The construction employer shall be responsible for analyzing the reasons for engineering changes, defining responsibilities, conducting technical and cost reviews, and overseeing the submission for review and implementation of change orders. If necessary, the construction employer shall organize expert evaluations.
Article 22.
Responsibilities of the Surveying Unit
The responsibilities of the surveying unit shall provide relevant surveying documents or opinions related to engineering changes in accordance with the provisions of the contract.
Article 23.
Responsibilities of the Design Unit
The design unit shall perform the following responsibilities regarding engineering changes:
1. Participate in the demonstration of engineering changes in accordance with the contract provisions, and provide technical support materials and documents related to the engineering changes;
2. Be responsible for the design of engineering changes;
3. Review and approve the final drawings of the project.
Article 24.
Responsibilities of the Construction Contractor
The construction contractor shall perform the following responsibilities regarding engineering changes:
1. Prepare the implementation plan and relevant cost estimates for engineering changes in a timely manner, and submit them to the construction, supervision, cost consulting, and other relevant units for review;
2. Organize the implementation of project changes in accordance with the approved engineering change drawings or documents;
3. Promptly archive the paper and electronic documents and relevant images generated during the engineering change process;
4. Prepare the as-built drawings for the project.
Article 25.
Responsibilities of the Supervisory Unit
The supervision unit shall perform the following responsibilities regarding engineering changes:
1. Based on the contract provisions, comprehensively handle engineering change matters. This includes organizing relevant units to promote engineering change work, reviewing the authenticity and completeness of engineering changes, providing review opinions on engineering change plans and costs, and managing the implementation of engineering changes.
2. Oversee and control the personnel, materials, tools, equipment, construction sequence, and methods involved in the implementation of engineering changes, ensuring real-time management of change amounts.
3. Establish an electronic ledger for engineering change management. The ledger shall include information such as the project name, change date, number, reason, specific content, estimated adjustment amount for each change, and cumulative estimated adjustment amount related to the changes. The supervision unit shall also be responsible for distributing the approved engineering change drawings or documents to the relevant units for archiving.
Article 26.
Responsibilities of the Cost Consulting Unit
The cost consulting unit shall perform the following responsibilities regarding engineering changes:
1. In accordance with the provisions of the pricing documents and relevant contractual terms, timely review the measurement and pricing of engineering changes and project verification, and promptly prepare cost estimates for engineering changes and review the budget for the changes;
2. Assess the impact of engineering changes on the total contract price, project settlement price, and total investment of the project as required by the construction employer.
Article 27.
Responsibilities of the Regulatory Authorities
The Urban Planning and Construction Bureau of the Cooperation Zone is responsible for the overall management of engineering changes. The Bureau shall accept and review engineering change applications submitted by construction employers and approve them according to its authority. For technically-complex engineering changes, the principle is to conduct reviews through methods such as scheme comparison, expert evaluation, or entrusted examination.
Chapter V
Legal Liability
Article 28.
Liability of Participating Construction Unit
In the event that any participating construction unit exhibits inadequate review or negligence during the engineering change approval process, resulting in financial losses to the fiscal investment of the Cooperation Zone, the relevant responsible units and personnel shall be held accountable in accordance with the law.
Article 29.
Liability of the Construction Employer
In cases where the construction employer demonstrates poor management or negligence, arbitrarily expands the construction scale, raises standards, adds construction content without authorization, deliberately omits items to avoid change approval, fails to comply with relevant reporting and approval procedures as stipulated, or neglects to hold responsible units accountable when necessary, legal accountability shall be pursued for the construction employer and the responsible personnel in accordance with the law.
Article 30.
Responsibilities of Construction Contractor
In cases where engineering changes occur due to reasons attributable to the construction contractor, any increased costs shall be borne by the construction contractor. If such changes lead to extended construction time, the construction contractor shall assume responsibility for the resulting project delays.
For any partial design changes proposed by the construction contractor to facilitate construction, ensure safety, or prevent interference, appropriate technical measures must be adopted with the necessary consent and approval. Any increased costs resulting from changes made without approval shall be borne by the construction contractor.
If the construction contractor makes unauthorized changes, it shall be liable for any additional costs and project delays. Should the project incur losses, the construction contractor shall be held responsible for such losses.
Article 31.
Liability Handling
For engineering changes caused by negligence on the part of participating entities such as the delegated contractor, surveyor, designer, supervisor, constructor, or equipment supplier, resulting in losses to investment projects in the Cooperation Zone, the following measures shall be taken:
1. If unilateral fault leads to cumulative cost adjustments amounting to RMB 1 million (inclusive) or more, or exceeding 2.5% (inclusive) of the construction contract value (excluding provisional sums), the performance evaluation of the contract shall not be rated as “excellent”.
2. If unilateral fault leads to cumulative cost adjustments amounting to RMB 2 million (inclusive) or more, or exceeding 5% (inclusive) of the construction contract value (excluding provisional sums), the performance evaluation of the contract shall be rated as “unsatisfactory”, and the legal representative or responsible person shall be interviewed.
3. If the staff members who are responsible for project supervision of engineering changes have violation of regulations, exhibition of negligence, dereliction of duty, abuse of power, favoritism, fraud, or acceptance of bribes, the disciplinary inspection and supervision authorities shall investigate and hold them accountable in accordance with their jurisdiction. If a crime is committed, the case shall be referred to judicial authorities.
Chapter VI
Supplementary Provisions
Article 32.
Applicable Principles
If there are other provisions regarding the review and approval of engineering changes by the state, Guangdong Province, or relevant functional departments, such provisions shall prevail.
Article 33.
Right of Interpretation
These measures shall be interpreted by the Urban Planning and Construction Bureau of the Cooperation Zone.
Article 34.
Effective Date and Validity Period
These Measures shall come into effect on March 1, 2024, and remain valid for a period of three years.
From the date of implementation of these measures, the Notice on Further Regulating the Management of Design Changes for Construction Projects (Zhuhai-Hengqin New Construction Notice [2018] No. 403) and the Supplementary Notice of the Hengqin New Area Construction and Environmental Protection Bureau on Further Regulating the Management of Design Changes for Construction Projects (Zhuhai-Hengqin New Construction Notice [2019] No. 41) shall be simultaneously repealed.
Appendix 1:
Application Form of Engineering Change
Engineering Change No.:
Applicant: ( Official Seal)
Construction Project:
Change Title:
Change Nature: £Emergency Rescue £Non-Emergency Rescue
Change Stages: £Change Approval £Change Cost Review
Change Type: ( ) £Type Design Change £Project Verification
Application Date:
Issued by the Urban Planning and Construction Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
Application Instructions
1. This form is to be completed by the construction employer and submitted to the Urban Planning and Construction Bureau of the Guangdong-Macao In-depth Cooperation Zone in Hengqin.
2. This form apply to engineering projects that are funded by the fiscal budget of the Cooperation Zone and included in its annual investment plan management.
3. This form shall be accompanied by relevant documents verifying and justifying the change application, including investigation reports, minutes of meetings, expert opinions, site images, and cost estimation documents for the proposed changes.
4. Except for emergency rescue projects, no engineering changes are to be implemented until the competent authority approves this application.
Application Form of Engineering Change
Engineering Change No.: