The French legal and management system for foreign contracted projects can be summarized into two aspects, namely: 1. Management in accordance with international common practices and practices; 2. Management in accordance with French domestic laws and management methods. Specifically, French foreign contracted projects are managed in accordance with international practices and practices in most cases; French engineering projects in French-speaking African countries are mainly managed in accordance with French domestic laws and practices.
I. International practices and practices in the field of foreign contracted engineering
Domestic industry insiders are no strangers to the professional association of the International Federation of Consulting Engineers (FIDIC). FIDIC is its French abbreviation. The federation was co-founded in 1913 by the Association of Consulting Engineers of France, the United Kingdom, and Belgium. The purpose is to jointly safeguard the interests of member associations and disseminate information to other member associations. After 1949, the United States, Australia, Canada and other countries have joined each other. There are more than 60 members, including the European Community Branch, the Nordic Member Chapter, the Asia Pacific Branch, and the African Member Chapter. Headquartered in Lausanne, Switzerland. In October 1996, the China Engineering Consulting Association officially joined the FIDIC organization.
The International Federation of Consulting Engineers has a number of publications in engineering disciplines, of which the prequalification standard format, contract documents, and owner/consulting engineer agreements are important reference documents for outsourcing projects. This information can be obtained from the Secretariat of the International Federation of Consulting Engineers or through the website of the International Federation of Consulting Engineers (http://).
In fact, the relevant professional institutions in China are quite familiar with these professional guides. For example, the international contract conditions published by the International Federation of Consulting Engineers are referred to as Red Book, Yellow Book and Orange Book. The Red Book is the “Construction Conditions for Civil Engineering Constructionâ€. The fourth edition was published in 1987 and has been revised several times. The Yellow Book is the "Contract Conditions for Electrical and Mechanical Engineering". The third edition was published in 1987 and has since been revised. The Orange Book is a "Construction-Building and Turnkey Contract Condition", published in 1995.
It should be pointed out that the three models of the International Federation of Consulting Engineers on international contract conditions, although not laws and regulations, have indeed become an internationally accepted international practice. Authorized by the International Federation of Consulting Engineers, the China Engineering Consulting Association has compiled and published the relevant contract conditions (in both Chinese and English).
French foreign contracted projects are, in most cases, managed in accordance with the contractual conditions established by the International Federation of Consulting Engineers. As long as we are familiar with these international practices, we can have a clearer understanding of the legal and management systems of French foreign contracted projects.
In addition, the International Federation of Consulting Engineers often holds professional forums to discuss technical issues in the engineering field. These forum meetings are also a good place to learn about the latest developments in the field of contracting engineering. For example, in 2003, the International Federation of Consulting Engineers held an annual meeting in Paris with the theme of “Responsible Partnersâ€. The annual meeting was rich in topics. The main contents of the exchanges were: 1. Considerations for responsible investment; The challenges faced by consulting engineers; 3. The consulting industry needs to do a good job in the face of challenges. At the same time, the annual meeting also arranged a special forum, the topics mainly involved: 1, the role of consulting engineers in strategic planning and investment choice; 2, monitoring the social and economic impact of regional development; 3, in the design phase, should consider the project Operating expenses and related maintenance costs; 4. Strengthen project risk management; 5. Manage a team of consultants, engineers and designers with multiple constraints; 6. Strengthen moral obligations through responsible investment; 7. Facing global differentiation The market, seeking sustainable development; 8, with new investment, will lead to public and political debates, the role that consultants can play; 9, through responsible investment, enhance new sense of responsibility.
Second, the routine example: the main content of the contract conditions for design-build and turnkey projects
The “Conditions for Design-Building and Turnkey Projects†published in 1995, which detailed the bidding procedures for the general contracting of engineering projects, are an important guide for business cooperation in the field of foreign contracted projects. The contract conditions are prepared by a special working group, mainly from experts in engineering consulting companies in Germany, the United Kingdom, Canada, and the United States; in addition, France, Denmark, Sweden, the World Bank, the International Bar Association, etc. Experts from professional institutions participated in the review of the original manuscript.
The contract conditions emphasize the importance of engineering standardization in the introduction, and believe that standardization is an ideal method to ensure the successful implementation of engineering projects, both technically and in management. Because of the large number of complex projects, such as construction, civil engineering, chemical engineering, electrical engineering, mechanical engineering or comprehensive engineering, the contract conditions will naturally be quite complex, and the standardized contract format becomes more and more important. Standardized contract format can greatly reduce disputes arising from imperfect performance and increased costs, facilitate bidders' evaluation of engineering projects and prepare funds for engineering projects. Therefore, in most cases, both parties will agree to the choice. This standard way.
It should be pointed out that although the contract conditions have become the basis of all the contracts of the engineering contract design scheme today, the description of the relevant clauses in the contract conditions itself does not provide an authoritative legal explanation for all aspects of each problem, because Explain the need to comply with the legal requirements of the specific contract.
According to the contract conditions, the design is the responsibility of the construction unit. This arrangement can reduce disputes arising from unclear division of responsibilities between the designer and the constructor. In this case, the employer can receive expert technical services, and the employer’s request is reflected in the bidding documents and implemented during the implementation process. If you don't have the expertise, there will be problems, especially when the construction needs to be changed.
Contractual conditions require that the procurement method be evaluated at the beginning of a project to determine the most appropriate method. The employer first analyzes the project funding arrangements to see what happens, the degree of risk involved, and other factors affecting the procurement process; then, you can decide which procurement method to use and determine the contract standard format that is closest to the employer’s requirements. .
The characteristics of the actual project may have a significant impact on the specific application conditions and other tender documents in the contract conditions. Therefore, the drafting of bidding documents must be careful, especially in terms of quality, performance standards and testing. Any defects in the bidding documents may result in unqualified works and the employer will pay a high price for this. Therefore, employers need to ensure adequate personnel, costs and time for drafting tender documents and analyzing tender proposals.
Under the contract conditions, the bidding process attaches importance to the prequalification of the bidders. It is believed that this helps employers understand the capabilities of the company, so that they can be invited to participate in the bidding in the future, and encourage companies with better qualifications to participate in the bidding when they have a chance to succeed. It is considered that unrestricted bids cannot promote reasonable competition. Although the employer can stipulate what conditions are required for the bidding that meets its requirements, if there are too many bidders, it will affect the bidding effect; because the bidders are worried that too many bidders may make their investment more than worth the effort, rather than having a certain level of detail. initial design.
If the bidding process is not subject to the rules of the relevant agency, the ideal pre-qualification invitation should indicate how many prospective bidders are invited to submit the bid. If considering the workload of preparing a responsive bidding document, for a simple project, six bidders are more suitable; for a more complex and large-scale project, three bidders are more reasonable.
Important terms for the interpretation of contract terms are: contract, employer, employer representative, contractor, design, staff and labor, process equipment, materials and processes, start-up, delays and suspensions, absenteeism and inspection, employer’s receipt, post-completion inspection, Defect liability, contract price and payment, change, contractor's default, employer's default, risk and liability, insurance, force majeure, claim, dispute and arbitration.
3. Laws and regulations on the management of foreign contracted projects in France
France has not independently promulgated relevant laws and regulations for foreign contracted projects. Some of France's foreign contracted projects, mainly in French-speaking African countries, are mainly managed by relevant French laws and regulations. For the historical reasons, the French-speaking African countries maintain a special relationship with France in politics, economy and culture. This relationship is also reflected in some economic management including engineering contracting. Therefore, studying the laws, regulations and management systems of French management of foreign contracted projects is actually the research and understanding of the French domestic engineering contracting market.
(1) France's management of the domestic construction contracting market
If a foreign company has not registered a company in France, it cannot carry out construction contracting business in France. In other words, the establishment of a company by a foreign company in France is a prerequisite for entering the French construction contracting market.
In order to enter the French construction contracting market and to conduct business effectively, there are two more effective ways, namely: First, through the acquisition of French construction companies, the construction contracting business. This method is often adopted by companies in EU member states, such as Italy. Second, the project manager (Project mamagement) entered the market, and the specific construction is still carried out by French companies. This method is often adopted in countries outside Europe. For example, Japan's SHIMIZU (Shimizu Construction) has undertaken the construction of the Disney Park Project and the Japan Cultural Center project in France. This type of contracting does not have clear requirements for the qualification of construction contracting companies.
Of course, there are other ways, such as directly registering a company. However, the French construction market is still relatively closed, and there are many standards. There are also some large companies (such as Vinci, Bouygues, Eiffage), which have special relationships with French government departments, and European suppliers and some Professional subcontractors have established close alliances and cooperative relationships, and have a strong competitive advantage in price, which makes the French market have some hidden exclusivity. For foreign companies, the above two methods are more feasible ways to enter the market.
Foreign companies cannot engage in construction contracting business in France by way of project registration.
The legal form of a foreign construction contractor's registered company in France is generally determined by the business and activities carried out by the company. There are generally two choices of one of two forms: a company limited by shares (SA) or a limited liability company (SARL). The formalities for registration with relevant institutions usually take one and a half months to two months to complete; of course, it depends on the time period for submission, for example, taking into account the factors of the holidays. It is recommended to consult or entrust a law firm with a business or representative office in China to facilitate communication and understanding to find the best solution that is suitable for the actual situation of Chinese companies while complying with French regulations.
After the company is registered, registration with professional institutions in the industry (such as the French Building Federation) is not necessary, depending on the business content and scale of the company. However, through industry registration or registration, some relevant information about the construction industry can be obtained through this channel.
France has its own principle of dividing the qualification level. The qualification level of a foreign company in its country may be helpful to its registration in France. Once the company is established, its qualification assessment will be carried out in full accordance with the French principle, starting from scratch. Therefore, it is recommended to acquire some medium-sized enterprises that have a certain qualification level in France (with an annual turnover of between 30 million and 50 million euros), so that they can obtain the corresponding qualifications immediately, in line with the requirements of France. Of course, this depends on the company's long-term strategy and the nature of the business activities that the company is going to carry out.
There are many rules and standards in the French construction industry, which are basically in line with European standards.
In order to better conduct business, it is recommended to hire a Frenchman as an administrative manager to handle all administrative issues in the company's registration and operation so that the company can adapt to French laws and regulations as well as various standards within the industry as quickly as possible.
There are many kinds of taxes in France, such as profit tax, land tax, personnel tax and so on. Once the company is registered in France, the tax department will take the initiative to contact.
With regard to the entry of personnel, it is easier for senior management to handle long-term residence, and the entry of personnel is relatively easy, while the entry of ordinary personnel is very difficult, and it is generally required to hire local French personnel.
Whether it is to declare tax or enter, it will depend on the form of the company's registered company. Specific personnel access and taxation issues involve very professional legal issues, and general counseling and answers are generally obtained through professional lawyers.
In France, for the general contractor, a “ten-year guarantee†is usually used. Depending on the nature and scale of the project, in some cases it will also take the form of a “five-year guarantee†or a “two-year guaranteeâ€.
On the administrative side, the owner often looks at the contractor's situation regarding insurance, taxation, employee social security and the “10-year guaranteeâ€.
During the bidding phase of the project, the contractor is required to submit a Bid bond. After the project is signed, the contractor needs to submit a performance bond. The specific amount of the loan will vary depending on the contract conditions. The letter of guarantee can be a bank guarantee or an insurance guarantee. At the same time, the contractor can request a payment guarantee from the owner. The form of guarantee also varies according to the nature of the project.
In France, the contractor’s risk of non-payment from the owner is limited.
In France, the type of engineering insurance and the specific requirements are that the insurance mainly purchased by the industry is “damage-engineering†insurance (DO); the insurance that the general contractor has to purchase is “engineering full insurance†(PUC). In addition, it can also be determined according to the management method and organizational structure of the project.
In France, the government does not regulate private owners' projects. Government projects are regulated by the government. There is no unified centrally supervised institution in France. The supervision of the project is carried out by the department or state enterprise specifically involved in the project. In the form of contract adoption, there is no unified contract model, but there are some basic principles and behaviors that are customary.
Information about the form of project tendering, content and requirements for qualifications can be obtained from a number of professional magazines, such as the Public Works Guidelines magazine, which publishes information on all government public projects.
Information about private projects is sometimes published in professional magazines, but it can only be part of it. Most of the information is mainly obtained through business channels such as architects, supervision companies, real estate agencies or real estate experts.
In recent years, due to financial reasons, the French government has increasingly granted some public projects such as roads, water services, and parking lots by means of BOT and BT. This type of award is only possible for companies with strong capital strength to participate. Such awards require a high bid bond.
In terms of the composition and regulations of the project contract, France has no specific regulations. In the actual business, the following documents are generally included: 1, Basic Administrative Provisions (CCAG) and Special Administrative Provisions (CCAP). This is the basic administrative requirements of the owner for the contractor; 2. Special Technical Terms (CCTP). This is the specific technical requirements of the project itself; 3. Other accessories.
Foreign companies are engaged in contracting business in France. After legal tax payment, they are completely free to handle the outflow of their own funds. There is no restriction on the French side. Imported materials and equipment are generally not limited. However, imported materials and equipment must comply with French standards and requirements. At the same time, it must comply with the relevant provisions on import taxation.
(2) France's relevant laws and regulations on the management of domestic construction contracting market
France's relevant laws and regulations governing the domestic construction contract market mainly include: 1. CODE DE LA CONSTRUCTION ET DE L'HABITATION; 2. CODE DE DEONTOLOGIE DES ARCHITECTES; Loi relative à la maîtrise d'ouvrage publique et à ses rapports avec la maîtrise d'oeuvre privée ,Ordonnance portant modification de la loi relative à la maîtrise d'ouvrage publique et à ses rapports Avec la maîtrise d'oeuvre privée); 4. Decree relating to the need for the project manager to perform duties by the public owner (Décret relatif aux missions de maîtrise d'oeuvre confiées par des maîtres d'ouvrage publics à des prestataires de droit privé) And a detailed description of the technical implementation of the decree (Précisions sur les modalités techniques d'exécution des éléments de mission de maîtrise d'oeuvre confiés par des maîtres d'ouvrage publics à des prestataires de droit privé); 5, about architects Decree; 6 Act on building subcontracting. The above laws and regulations are only available in French. Can be downloaded through the relevant regulations website.
1. Recommended website France has a special regulatory website, namely: http:// Through this website, you can inquire about the contents of the Building and Housing Code and the architect's code of ethics. This website only provides legal material for French text.
In addition, you can also visit the website of the French Ministry of Equipment Construction and Public Works for information on the entire building and public works sector (http://).
2. The part that needs to be supplemented
From the perspective of regulatory management, France has a lot of content and places to pay attention to, such as national defense obligations, construction insurance, standardization, technical inspections in the construction field, public market procurement, and jurisprudence. In any of the above aspects, there are corresponding regulatory requirements, which cannot be ignored.
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
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