Recently, the Department of Housing and Urban-Rural Development of Guangdong Province, together with the Development and Reform Commission of Guangdong Province, the Department of Human Resources and Social Security of Guangdong Province, the Department of Transportation of Guangdong Province, the Department of Water Resources of Guangdong Province, and the Guangdong Supervision Bureau of China Insurance Regulatory Commission, issued the " "Notice on Carrying out Work on Guarantee Insurance for Construction Projects", actively introduces the commercial insurance system in the field of engineering construction, "reduces the burden" of construction enterprises, and helps the reform and development of the construction industry in the province to upgrade again!

What is "Construction Engineering Guarantee Insurance"?

The "Notice" clarifies that construction project guarantee insurance refers to a project risk protection mechanism provided by insurance companies during project construction, covering construction project bidding and bidding, contract performance, project payment, salary payment, maintenance within the defect liability period, etc. stages and core links. Insurance contracts or policies issued by insurance companies are used as one of the forms of project bidding, contract performance, wage payment, and construction quality assurance.

The insurance types of construction project guarantee insurance include:

1. Construction project bid guarantee insurance: insurance provided by insurance companies to ensure that bidders perform relevant bidding obligations. If the bidder submits the bid guarantee insurance contract or insurance policy signed with the insurance company when bidding, it shall be deemed to have paid the bid guarantee deposit or provided a bank guarantee or guarantee company guarantee.

2. Construction project performance guarantee insurance: insurance provided by insurance companies to ensure that contractors perform relevant contractual obligations. If the contractor submits the performance bond insurance contract or insurance policy signed with the insurance company when the project contract is signed, it shall be deemed to have paid the deposit.

3. Guarantee insurance for the payment of the contract payment by the developer: the insurance provided by the insurance company to the contractor to ensure that the developer of the project will pay the contract payment according to the contract. If the employer submits the insurance contract or insurance policy signed with the insurance company when the project contract is signed, it shall be deemed to have submitted the contract payment guarantee deposit.

4. Construction quality guarantee insurance for construction projects: Insurance provided by insurance companies to the contract developer to ensure that the contractor of the project project has the obligation to repair the quality defects of the construction project within the defect liability period. Where a contractor submits a construction project quality guarantee insurance contract or insurance policy signed with an insurance company, it shall be deemed to have submitted a project quality guarantee deposit.

5. Guarantee insurance for wage payment of construction enterprise workers: the insurance company provides guarantees to the relevant departments of human resources and social security (or housing and urban-rural construction, transportation, water conservancy) and other relevant departments of the project site to pay the wages of construction workers to the construction enterprise of the project according to regulations insurance. Where a construction enterprise submits an insurance contract or insurance policy signed with an insurance company, it shall be deemed to have submitted a guarantee deposit for the payment of workers' wages.