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Construction Industry Actt (營造業法)

營造業法 (Ch)

The entire text of 73 articles enacted and promulgated by President Order Hua-Tsung (1)-Yi-Tzu No.09200020090 on Feb.7, 2003.
Articles 8 amended by President Order Hua-Tsung (1)-Yi-Tzu No.09300094191 on May.19, 2004
Articles 31 amended by President Order Hua-Tsung (1)-Yi-Tzu No. 09500087051 on June.14, 2006
Articles 12.31 amended by President Order Hua-Tsung (1)-Yi-Tzu No. 09700147401 on Aug.6, 2008
Articles 67-1 amended by President Order Hua-Tsung (1)-Yi-Tzu No. 09800094021 on Apr 22, 2009
Articles 16、18、19、51、56、61、69 amended by President Order Hua-Tsung (1)-Yi-Tzu No. 09900127991 on May 26, 2010
Articles 7、11 amended by President Order Hua-Tsung (1)-Yi-Tzu No. 10000015631 on Jan 26, 2011
Articles 3、61 amended by President Order Hua-Tsung (1)-Yi-Tzu No. 10400013431 on Feb 4, 2015


Chapter 1 General Principles

Article 1 This Act is enacted to advance the technical level of the construction industry, ensure the quality of construction and repair works, promote the healthy development of the construction industry, and increase the public welfare.
For any affairs other than prescribed hereinto, other relevant laws shall apply.

Article 2 The "competent authorities" mentioned in this Act refers to the Ministry of the Interior at the central level, the municipal governments at the municipal level, and the county (city) governments at the county (city) level.

Article 3 The terms used this Act are defined as follows:
1. Construction and repair works: refer to civil and construction works as well as related operations.
2. Construction enterprises: refer to the manufacturers registered at and licensed by central, municipal and county (city) competent authorities to undertake construction and repair works.
3. Comprehensive construction enterprises: refer to the manufacturers registered at and licensed by the central competent authority to comprehensively perform construction and management of construction and repair works.
4. Specialized construction enterprises: refer to the manufacturers registered at and licensed by the central competent authority to operate specialized construction works.
5. Civil engineering contractors: refer to the manufacturers registered at and licensed by the municipal or county (city) competent authorities to operate small-scale comprehensive construction and repair works in the local and adjacent areas.
6. Integrated contracting: refers to tendering of the whole or a part of planning, design, construction and construction depending on the characteristics of the works.
7. Joint contracting: refers to the contracting deeds performed by two or more comprehensive construction enterprises to jointly contract a same work.
8. Principal: in an unlimited company or limited partnership, the principal is defined as the stockholder representing the company; in a limited company or joint stock limited company, the director representing the company; in a sole corporation, the investor or the legal representative of the investor; and in a partnership organization, the copartner executing operations. Within the scope of executing duties, the manager of a company or a firm may also be the principal.
9. Full-time engineers or technicians: refer to the engineers or architects who are employed by  construction enterprises to take charge of technical direction and construction safety of the works contracted by the enterprise. It is the engineers who should say chief engineer; its architects, should be called chief architect. 
10. Field directors: refers to persons who are employed by construction enterprises to preside over the worksite affairs and construction management of the works contracted.
11. Technical workers: refers to the persons who hold architectural engineering management technical worker certificates or other civil or construction related technical worker certificates.

Article 4 Any construction enterprise that is not permitted and licensed with a registration certificate or doesn't join the association of construction industry may not do business.
The association of construction industry may not reject any application for joining the association.
Where the association of construction industry, without any due reasons, refuses a construction enterprise to join, the enterprise shall be regarded as enrolled after it is approved by the central competent authority of civil organization.

Article 5 The central competent authority may entrust or assign the municipal and county (city) competent authorities to deal with permit and registration of construction enterprises, cancellation or abolishment of permits, closure, discontinuance, rewarding and punishment, charge of registration certificates and projects contracting manuals, discipline of full-time engineers and field directors, as well as granting, alteration, cancellation, reexamination and sampling examination of construction enterprise registration certificates and projects contracting manuals.

Chapter 2 Classification and Permission

Article 6 Construction enterprises are classified into comprehensive construction enterprises, specialized construction enterprises and civil engineering contractors.

Article 7 General construction business (or synthetic construction business, (hereinafter referred to as general construction business) is classified into three grades of A, B and C which shall possess the following conditions:
1. Having a minimum of one full-time professional engineer who have (has) held professional engineer certificates or architect certificates for civil engineering, hydraulic engineering, surveying, environmental engineering, structural engineering, geotechnical engineering or soil and water conservation engineering and such certificate holders should have studied civil architecture related curricula and earned a certain number of credits before obtaining such certificates through successfully passing the examination and who have (has) accumulated hands-on experience in civil architectural engineering for a minimum of two years.  
2. Holding capital above the specified amount.
Where the full-time engineer specified in Subparagraph I of the preceding paragraph is a professional engineer, such engineer shall join the local Professional Engineer Association where the business is located before being hired to serve with the general construction business. In the event that a professional engineer had joined the respective Professional Engineer Association(s) of Taiwan Province before the change of the county (city) into a special municipality or its merger with other special municipality or county / city administrative district in accordance with Article 7-1 of the Local Government Law, he or she may continually join that Professional Engineer Association(s) of Taiwan Province while he or she may be hired to serve with the general construction business in the municipality or county / city administrative district after reorganization in accordance with Article 7-1 of Local Government Law.
The civil construction related curricula and number of credits specified in Paragraph I, Subparagraph I, and the amount under Subparagraph II shall be determined by the Central Government level competent authority.
In case of a change in the curricula and number of credits specified in the preceding paragraph, a full-time professional engineer having been hired to serve with the general construction business shall provide the certificate verifying the additional training programs within two years after the change. Should a professional engineer fail to complete the additional credit within the specified time limit, the competent authority shall order him or her to discontinue service as a full-time engineer for the general construction business.
A Grade B general construction business shall be a Grade C general construction business which has been in hands-on business for three years, and has successfully completed and undertaken projects amounting to over NT$200 million in five years and has been evaluated in the first degree in two years.
A Grade A general construction business shall be a Grade B general construction business which has been involved in hands-on business for three years, and has successfully completed and undertaken projects amounting to over NT$300 million in five years and has been evaluated in the first degree in three years.

Article 8 The registered specialized works of professional construction enterprises are as follows:
1. Steel structure works.
2. Soil-retaining & supporting and earthworks.
3. Foundation works.
4. Construction tower scaffold and shelf hoisting and moulding works.
5. Premixed concrete works.
6. Construction drilling works.
7. Underground pipeline works.
8. Curtain wall works.
9. Garden and landscape works.
10. Environmental protection works.
11. Waterproof works.
12. Other items supplemented or altered and announced by the central competent authority jointly with the competent authority of the objective undertaking.

Article 9 A specialized construction enterprise shall meet the following conditions:
1. Full-time engineers who meet the requirements of the professional works.
2. At least a certain amount of capital; the higher of the capital amounts where two items of professional works are registered.
The qualifications and number of full-time engineers referred to in Subparagraph 1 and the certain amount in Subparagraph 2 shall be determined by the central competent authority separately according to each item of the professional works.

Article 10 A civil engineering contractor shall meet the following conditions:
1. A principal of three years of civil construction experiences
2. A certain amount of capital.
The certain amount referred to in Subparagraph 2 shall be determined by the central competent authority.

Article 11 Where a civil engineering contractor company operates business beyond the previously registered municipality, county (city), the business shall be limited to the neighboring municipality, county (city).
In case of business operation beyond the specified zone as mentioned in the preceding paragraph, Taipei City, Keelung City, Hsinchu City and Chiayi City are deemed to be the neighboring municipality, county (city). Penghu County, Kinmen County are deemed to be neighboring Kaohsiung City, Lienchiang County is deemed to be neighboring Keelung City.

Article 12 The kind of contribution and it's ratio in amount of capital for a construction enterprise shall be fixed by the central competent authority.
Where a construction enterprise is established as a joint stock limited company, the capital mentioned in this Act refers to the paid-up capital.

Article 13 Before to apply for corporation or commercial registration, a construction enterprise shall submit the following documents to the central, municipal or county (city) competent authority to apply for construction permit:
1. Letter of application.
2. Capital certification documents.
3. Name, dwelling or temporary residence address, personnel details, and qualification certificates of founder or copartner.
4. Operating plan.
The letter of application referred to in Subparagraph 1 shall include the following contents:
1. Name and address of the construction enterprise.
2. Name, birthday, dwelling or temporary residing address, and identity certificate of the principal.
3. Class and business items of the construction enterprise.
4. Name, birthday, dwelling or temporary residing address, and identity certificate of the full-time engineer.
5. Organization property.
6. Amount of capital.
Letter of application submitted by a civil engineering contractor doesn't require the item described in Subparagraph 4.

Article 14 Construction enterprises shall accomplish the corporation or commercial registration within 6 months after receipt of the permit; otherwise, the central, municipal or county (city) competent authority will abolish the permit. Where there are due reasons, extension of up to 3 months may be applicable for only once.

Article 15 Construction enterprises shall submit the following documents within 6 months after completion of corporation or commercial registration to the central, municipal or county (city) competent authority to apply for construction enterprise registration and get the registration certificate and the projects contracting manual prior to operation; otherwise, the central, municipal or county (city) competent authority will abolish the permit:
1. Letter of application.
2. Original permit.
3. Corporation or commercial registration certificates.
4. Letter of consent for employment of full-time engineer and technicians and the qualification certificate.
The above-mentioned letter of application shall include the following contents:
1. Name and address of the construction enterprise.
2. Name, birthday, dwelling or temporary residing address, and identity certificate, signature and seal of the principal.
3. Class and business items of the construction enterprise.
4. Name, birthday, dwelling or temporary residing address, and identity certificate, signature and seal of the full-time engineer.
5. Organization property.
6. Amount of capital.
The documents listed in Subparagraph 4, Paragraph 1 are not required for a civil engineering contractor, and the contents described in Subparagraph 4 may be excluded in the letter of application submitted by the contractor.
In case of alteration of the contents in the letter of application mentioned in Paragraph 2, Article 13, the construction enterprise shall finish the procedure of alteration permit before to apply for the registration certificate.

Article 16 In the event of any change to any item specified in the application form referred to under section 2 of the previous article, relevant justification documents shall be filed with the central governing authority or the municipal or city (county) governing authority within two months from the occurrence of the fact for registration of change and for exchange of new construction industry registration license.

Article 17 Construction enterprises shall apply for reexamination every 5 years since receipt of the registration certificates. The central, municipal or county (city) competent authority may perform sampling examination at any time, and the examinee may not refuse, encumber or evade the examination.
In order to apply for the above-mentioned reexamination, the registration certificate and projects contracting manual or other related certificates shall be submitted to the central, municipal or county (city) competent authority.
The items of the reexamination and sampling examination as mentioned in the first paragraph include related certification documents of the principal and full-time technicians, financial status and capital amount of the enterprise, as well as the contents of the projects contracting manual.

Article 18 In case of any non-compliance with this rule discovered during the application for re-examination by a construction company or during random inspection by the central governing authority or the municipal or city (county) governing authority, the central governing authority or the municipal or city (county) governing authority shall state the reasons and notify the construction company for remedy.
The construction company shall remedy the matter within two months from the day following the date on which the notice is received.

Article 19 The contracting project brochure shall include the following items:
1. Construction industry registration license number.
2. Name and signature of responsible person.
3. Signature and sample seal of dedicated engineering staff.
4. Matters of rewards and penalties.
5. Engineering matters.
6. Altered matters.
7. Other matters designated by the central governing authority.
In the event of any change to any item specified in the previous section, the contracting project brochure and relevant justification documents shall be filed with the central governing authority or the municipal or city (county) governing authority within two months from occurrence of the fact for registration of change, except for matters specified in the contracting project brochure of a professional construction company or civil engineering general contractor and if the central governing authority determines that no application for change of registration is required based on a certain amount or scale.

Article 20 Where a construction enterprise stops operation by itself or is put under punishment of closure, the construction enterprise registration certificate and the projects contracting manual shall be handed in to the central, municipal or county (city) competent authority for recording, and will be returned back after record is made; the same for recovery of operation.
Where a construction enterprise terminates operation, the construction enterprise registration certificate and the projects contracting manual shall be handed in to the central, municipal or county (city) competent authority, and the registration shall be abolished.

Article 21 Where a construction enterprise is put under punishment cancellation of registration, abolishment of registration or closure, the enterprise may not undertake any works any more since arrival of the notice of punishment. For the works already started but not finished yet, another construction enterprise of the same grade and class may be entrusted to continue the construction until completion.

Chapter 3 Contracting of Works

Article 22 Only the comprehensive construction enterprises that have planning and design qualifications according to the law may undertake works in the way of integrated contracting.

Article 23 Contracting of works shall be performed according to the limit of construction cost and the range of construction scale of the enterprise, and the total amount of the works contracted in a certain period may not exceed 20 times the net value of amount of capital.
Provisions on calculation of the construction cost limit, range of construction scale, and determination of the certain period mentioned above shall be prescribed by the central competent authority.

Article 24 Where two or more construction enterprises jointly undertake works, they shall sign the contract together and establish a joint contracting agreement to take the responsibilities prescribed in the contract of the works.
The above-mentioned joint contracting agreement shall include the following contents:
1. Range of work.
2. Investment ratio.
3. Rights and obligations.
The limit of construction cost as prescribed in the above article is also applicable to the construction enterprises that participate in joint contracting.

Article 25 The construction and repair works or specialized works contracted by a comprehensive construction enterprise may be subcontracted to specialized construction enterprises unless the orderer requires the comprehensive construction enterprise to perform construction by itself, and the comprehensive construction enterprise shall burden the construction liabilities of the subcontracted works, and the subcontractor specialized construction enterprise shall assume joint and severe liabilities for the subcontracted proportion of the works.
Where the subcontract is reported to the orderer for reference and has been recorded by the subcontractor specialized construction enterprise in the projects contracting manual, and the comprehensive construction enterprise has transfer the rights of the subcontracted proportion to the subcontractor specialized construction enterprise, the mortgage rights under Article 513 and the right to claim caused by accession under Article 816 of the Civil Code are equivalent to the comprehensive construction enterprise's rights to claim price or remuneration from the orderer.
Besides to undertake subcontracted works according to the first paragraph, specialized construction enterprises may, according to the items of registered specialized works, hire specialized works and the necessary related construction & repair works from manufacturers on order.

Article 26 Construction enterprises shall work out worksite construction shop drawings and construction plans according to the working drawings and specifications to construct the works contracted.

Article 27 The contract of construction and repair works shall include the following contents:
1. Parties concerned of the contract.
2. Name, address and contents of the works.
3. Currency amount, and date and method of payment.
4. Date of commencement and completion of the works, as well as calculation of the construction period.
5. Disposal of alteration of the contract.
6. Provisions on adjustment of project funds according to the price index.
7. Disposal of disputes.
8. Provisions on acceptance and maintenance.
9. Provisions on quality control of the works.
10. Compensation for breach of contract.
11. Provisions on termination or cancellation of contract.
Implementation of the above paragraph will be determined by the central competent authority otherwhere.

Chapter 4 Staffing

Article 28 The principal of a construction enterprise may not be the principal, full-time engineer or jobsite director of another construction enterprise.

Article 29 Technical workers shall perform construction operations or quality control on the spot of worksite according to their expertise and the job specifications.

Article 30 Where a construction enterprise contracts a construction project above a certain currency amount or a certain scale, a field director shall be assigned at the jobsite during construction.
The above-mentioned certain currency amount and scale shall be specified by the central competent authority.

Article 31 The jobsite directors shall have any of the following qualifications, and shall be evaluated as qualified by the central competent authority or acquire certificates of technician Grade A of construction engineering management under technical evaluation legislations by the central labor authority and hold the practicing certificates granted by the central competent authority:
1.Graduated from civil engineering, architecture, construction, hydraulic engineering, environment or related departments or specialties of colleges or higher, and having worked in civil or architectural engineering for over 2 years after graduation.
2.Graduated from civil engineering, architecture, construction or related subjects of vocational schools, and having worked in civil or architectural engineering for over 5 years after graduation.
3.Graduated from senior high schools or vocational schools, and having worked in civil or construction for over 10 years after graduation.
4.Passed the National Civil Ordinary Examination or exams of civil engineering, architecture or related subjects of special test equivalent to or higher than National Civil Ordinary Examination, and having worked in civil or architectural engineering for over 2 years after passing the test.
5.Possessing the certificates of architectural engineering management technician Grade A or Grade B, and having worked in civil or architectural engineering for over 3 years.
6.Jobsite directors in specialized construction enterprises shall be assumed by those who possess certificates of technician Grade A or Grade B of the corresponding specialty, and have worked in engineering of the speciality for over 3 years.
Before the enforcement of this act, those who are fit up with the fifth item in the last paragraph, and then finish certain hours of legislation courses stipulated by the central competent authority and also acquire the certificates, are reagrded as qualified.
To assume the position of jobsite director of a construction enterprise, anyone who has got a practicing certificate of jobsite director must obtain the retraining certificate of the latest four years for every four years.
To assume the position of jobsite director in a construction enterprise, anyone who has got a jobsite director training certificate jointly issued by Ministry of the Interior and the entrusted institution shall get the above-mentioned retraining certificate to acquire the practicing certificate issued by the central competent authority.
The jobsite directors should establish national construction industry jobsite directors union in the place where the central competent authority is located, and transact the businesses of jobsite directors management guidance and training. The jobsite directors should join in the national construction industry jobsite directors union. The national construction industry jobsite directors union may not reject any application for joining the union. Construction industries could recruit jobsite directors without the consent of construction industry jobsite directors union.
The procedure and standard for evaluation of worksite directors mentioned in the first paragraph as well as the term, causes, hours, implementation method, and management of retraining mentioned in the second paragraph and related affairs shall be prescribed by the central competent authority.

Article 32 The jobsite director of a construction enterprise shall take charge of the following affairs:
1.Construction according to construction plan and drawings.
2.Filling in daily construction logs.
3.Management of persons, machines, equipments and materials at the jobsite.
4.Supervision of labor safety and hygiene at the jobsite, maintenance of public environment and safety, as well as other jobsite administrative affairs.
5.Information of emergency and abnormity at the jobsite.
6.Other affairs that shall be handled by jobsite directors according to the law.
Where a jobsite director is not assigned for a construction project contracted by a construction enterprise according to Article 31, the full-time engineer or another person shall be designated to perform the above-mentioned work.

Article 33 Technical workers of certain kinds, percentage or number shall be assigned for the specific construction items of the works contracted by construction enterprises.
The above-mentioned specific construction items as well as the kinds and percentage or number of technical workers shall be determined by the central competent authority jointly with the central regulating department of labor affairs.

Article 34 The full-time engineers of construction enterprises shall be continuous practitioners, and may not be fixed-term contract workers, and may not concurrently assume other operations or positions except part-time teaching, research, disaster survey, authentication, or other operations or positions approved by the central competent authority.
Where the principal of a construction enterprise knows that the full-time engineer infringes the above provision, the principal shall notify the engineer to resign the part-time work or operations, and shall dismiss the engineer in case he/she doesn't resign the part-time work within the specified time limit.

Article 35 The full-time engineer of a construction enterprise shall take charge of the following affairs:
1.Review construction plans, and sign or seal after approval.
2.Sign or seal the commencement and completion reports and the work inspection report form.
3.Supervise construction according to drawings, and solve technical problems during construction.
4.Dispose the emergency and abnormity informed by the jobsite director.
5.Arrive upon the scene to give explanation when inspecting works, and sign or seal the work inspection documents.
6.Arrive upon the scene to examine the proportion of construction works that requires examination, and sign or seal the examination documents.
7.Provide explanation on the spot when the competent authority performs examination, and sign or seal the related documents.
8.Other affairs that shall be handled by full-time engineers according to the law.

Article 36 Principals of civil engineering contractors shall take charge of the affairs that shall be handled by jobsite directors and full-time engineers as prescribed in Articles 32 and 35.

Article 37 The full-time engineer of a construction enterprise shall inspect the engineering drawings and construction specification prior to and during construction. Where it is found that the drawings and specification are difficult for construction or likely to cause danger to the public, the engineer shall report to the principal of the construction enterprise in time.
The principal shall immediately inform the orderer about the above-mentioned matter, and appropriately dispose the case according to the improvement plan brought forward by the orderer. Where danger or damage is caused because the orderer doesn't bring forward an improvement plan in time after receipt of the foresaid information, the construction enterprise will not undertake the liabilities of compensation for damage.

Article 38 Where the principal or full-time engineer of a construction enterprise finds during construction that public danger is likely to be caused immediately, he/she shall take timely measures that are necessary for avoiding the danger and will not cause danger more serious than that could be caused by the danger. Where the danger is attributable to the orderer, the expenses for necessary measures shall be paid by the orderer, and the orderer may not refuse to pay the expenses without due reasons, unless otherwise prescribed in the contract.

Article 39 Where the principal or full-time engineer of a construction enterprise infringes Paragraph 1 and 2 of Article 37 or the above article and thus causes public danger, liabilities shall be undertaken separately according to the law and the actual circumstance.

Article 40 In case the full-time engineer leaves the job or cannot process operations due to certain reasons, the construction enterprise shall immediately report to the central competent authority for recording, and shall employ someone else within 3 months according to relevant provisions.
Where there is construction works to be continued during the above-mentioned period, an architect or technician who meets the original grade and class of the construction enterprise, and has not established office or been employed by a technical consultation institution or construction enterprise shall be entrusted to do the work of the full-time engineer.
The above-mentioned technician may only assume the work after having joined in the association.

Chapter 5 Supervision and Management

Article 41 When the project director or the sponsor department performs examination, inspection or acceptance check of the works, the full-time engineer and the jobsite director shall arrive upon the scene to provide explanation, and the full-time engineer shall sign or seal the examination, inspection or acceptance documents.
In case of infringement of the above paragraph, the project director or the sponsor department shall refuse to perform examination, inspection or acceptance check.

Article 42 Upon commencement of a contracted project, the construction enterprise shall record the project in the projects contracting manual, which shall be signed by the orderer. Upon completion, the project contract, the completion certificate, and the projects contracting manual shall be submitted to the municipal or county (city) competent authority at the location of the project for recording, and the documents will be returned back after recording.
The above-mentioned completion certificate refers to the building usage license, or the completion and acceptance certificate produced by the orderer.

Article 43 The central competent authority may periodically appraise the engineering performance, construction quality, organization scale, management ability, specialized technical research, and financial status of the comprehensive construction enterprises and some professional construction enterprises for which appraisal is deemed as necessary. The appraisal results are divided into three classes.
The central competent authority may charge certain fees for the above-mentioned appraisal, and may entrust related departments (institutions) or associations to perform the appraisal. The qualifications and conditions for the related departments (institutions) or associations entrusted, procedure for applying for approval, validity period, granting (replacing), cancellation, abolishment and other affairs related to management of approval certificates, application conditions and procedure of appraisal, standards for classification of appraisal results, as well as validity period, granting (replacing), cancellation, abolishment and other affairs related to management of appraisal certificates shall be prescribed by the central competent authority.

Article 44 Where the orderer has prescribed the qualifications for the construction enterprises to contract the works, the provisions of such qualifications shall apply.
Construction works operated according to the Government Procurement Act may not be contracted by the comprehensive or professional construction enterprises appraised as class 3.

Chapter 6 Professional Associations

Article 45 Associations of the construction industry are classified into the association of comprehensive construction enterprises, associations of specialized construction enterprise, and the association of civil engineering contractors.
The above-mentioned associations of specialized construction enterprises may be separately established according to the items of the professional works listed in Article 8.
Before an association of specialized construction enterprises is established, the corresponding professional construction enterprises may temporarily join the association of comprehensive construction enterprises.

Article 46 Where an association of construction enterprises has already been established before this Act is enforced, but the organization or name is not in conformity with this Act, the name shall be changed within a time limit specified by the central competent authority after this Act takes effect; the directors and supervisors may still assume the positions until expiration of the tenure.

Article 47 Each association of construction enterprises shall establish the common pledges of the members, a discipline committee, and methods for maintaining disciplines.

Article 48 Associations of construction enterprises may be entrusted to perform investigation, analysis, appraisal and juror duty, research of construction enterprises as well as other related operations.

Article 49 The central competent authority may require the associations of construction enterprises to bring forward reports on the operating status of construction enterprises and the trends of practitioners.

Chapter 7 Assistance and Encouragement

Article 50 To improve the operating ability and enhance the technical skill level of the construction industry, the central competent authority may associate with related competent authorities to take assistance measures for the following affairs:
1.Market investigation and development.
2.Improvement of industrial environment
3.Strengthening of technical R&D and information integration.
4.Promotion of the industry's international competitiveness.
5.Improvement of the manpower training mechanism.
6.Other assistance affairs designated by the central competent authority.

Article 51 Any construction company determined to be first level in accordance with Article 43 and which successfully qualifies for re-examination by the governing authority or relevant division (institution) recognized by the central governing authority shall be a good construction company.  In order to procure sound development, improve technical standard and accelerate industrial upgrade, such company shall be rewarded as follows:
1. Issuance of a reward certificate or trophy for publication.
2. Bid deposit, construction deposit or construction reserve fund during contracting of government projects may be reduced by 50% or less.  Request for advance construction payment may be increased by 10%.
Rules for the qualifications, approval procedure, re-examination procedure, re-examination standard and other matters for re-examination division (institution) referred to in the previous section shall be determined by the central governing authority.

Chapter 8 Penal Provisions

Article 52 Any company practicing in the construction industry without permit or with a cancelled or abolished permit will be compelled to stop operation, and will be fined a sum of NT$1,000,000~10,000,000; in case of disobedience of the foresaid punishment and continuance of operation, consecutive punishment may be executed.

Article 53 Where a technical worker seriously infringes Article 29, he/she will be punished to stop executing operations in construction enterprises for 3 months to 2 years.

Article 54 In case of any of the following committed by a construction enterprise, a sum of NT$1,000,000~5,000,000 will be fined, and the permit will be abolished:
1.Use the registration certificate or projects contracting manual of another construction enterprise to do construction business.
2.Provide the registration certificate or projects contracting manual for others to use for operating construction business.
3.Contract works during closure.
The principals of the above-mentioned construction enterprises may not reapply for construction enterprise registration within 5 years commencing from abolishment of the permit.

Article 55 In case of any of the following committed by a construction enterprise, a sum of NT$100,000~500,000 will be fined:
1.Construction business is operated without the construction enterprise registration certificate or the projects contracting manual although being permitted.
2.Construction business is operated without joining in an association of construction enterprises.
3.Reexamination is not applied for or sampling reexamination is refused, encumbered or evaded with infringement of Paragraph 1, Article 17.
4.Necessary procedure is not handled according to Article 20 upon closure, closure punishment, recovery of operation, or termination.
In the occasion described in the above Subparagraph 1 or 2, the construction enterprise may be compelled to stop operating and to finish the necessary procedure. Where operating is continued without handling the procedure within the specified time limit and, consecutive punishment will be executed. In the occasion described in Subparagraph 4, where the supplementary procedure is not finished within the time limit notified by the competent authority, consecutive punishment may be executed.

Article 56 If any construction company violates Article 11, Section 2 of Article 18, Section 1 or Article 23, Article 26, Section 1 of Article 30, Section 1 or Article 33, Article 40 or Section 1 of Article 42, a warning or order to suspend business for less than three months and no more than one year shall be imposed based on the gravity of the violation.
If any construction company receives three warnings within five years, is ordered to suspend business for less than three months and no more than one year, or if the accumulated period for suspension of business within 5 years exceeds three years, the permit shall be cancelled.

Article 57 A construction enterprise that infringes Article 16 or Paragraph 2, Article 19 will be fined a sum of NT$20,000~100,000, and will be compelled to apply for alteration registration within a specified time limit according to relevant provisions. In case application is not submitted within the time limit, closure punishment may be executed for 3 months to 1 year.

Article 58 Where the principal of a construction enterprise infringes Article 28, a sum of NT$200,000~1,000,000 will be fined, and the enterprise will be notified to dismiss the principal within a specified time limit. In case the principal is not dismissed within the time limit, the construction enterprise will be fined a sum of NT$200,000~1,000,000, and will be notified again to dismiss the principal. Consecutive punishment may be executed for consecutive infringement of the foresaid provision.

Article 59 Where the principal of a construction enterprise infringes Paragraph 2, Article 37 or Article 38, he/she will be fined a sum of NT$50,000~500,000.

Article 60 Where the orderer infringes Paragraph 3, Article 37, he/she will be fined a sum of NT$50,000~500,000.

Article 61 If any professional engineering staff of any construction company violates Article 34, any of items 1 to 7 of Article 35, Section 1 or Article 41 or violates the charter of the applicable technician’s association, a warning or order to suspend business for less than two months and no more than two years may be imposed based on the gravity of the violation.  During the suspension period, no relevant business may be performed in accordance with the Technicians Act or the Architect Act.  The same shall be applicable if any technician under Section 4 of Article 66 has any significant violation of the charter of the applicable association.
If the responsible person of any construction company knows about the violation of Section 1 of Article 34 or Section 1 or Article 41 by any professional engineer affiliated with such company and fails to request resignation by such staff, dismisses such staff or fails to request his/her presence, order for suspension of business for less than three months and no more than one year of such construction company shall be imposed.
If any technician entrusted with general construction management certification under Section 4 of Article 66 violates any of Items 1 to 7 of Article 35, fails to join the association or fails to submit a filing for registration with the municipal or city (county) governing authority in the place where the construction is located after being entrusted with the certification, warning or order for suspension of construction business for less than two months and no more than two years shall be imposed.  During the suspension period, no relevant business may be performed in accordance with the Technicians Act.
If any professional engineering staff of the construction industry or any technician entrusted to perform general construction management certification receives three warnings within 5 years, he/she will be punished to suspend construction business for less than two months and no more than two years, no relevant business may be performed in accordance with the Technicians Act during the suspension period.

Article 62 Where the jobsite director of a construction enterprise infringes any of Subparagraphs 1~5 of Article 32 or Paragraph 1, Article 41, he/she will be warned or punished to stop operating construction business for 3 months to 1 year depending on severity of the circumstance.
Where the jobsite of construction enterprise has been warned under the above paragraph for 3 times, he/she will be punished to stop operating construction business for 3 months to 1 year; where the accumulated punishment term of stopping operation amounts to 3 years, the jobsite director practicing certificate will be abolished.
Jobsite directors may not reapply for practicing certificates within 5 years commencing from the day when the jobsite director practicing certificate is abolished as prescribed above.

Article 63 Where the principal of a civil engineering contractor infringes Article 36, the civil engineering contractor will be punished to stop operation for 3 months to 2 years depending on severity of the circumstance.

Article 64 Where an association of construction enterprises infringes Paragraph 2, Article 4 or Article 46, the central competent authority of mass organizations will fined the association a sum of NT$100,000~500,000.

Article 65 The fine executed under this Act shall be paid within specified time limit; otherwise, the case will be transferred to related departments for coercive execution according to the law.

Chapter 9 Supplementary Provisions

Article 66 The construction enterprises, civil engineering contractors, and manufacturers operating the professional works listed in Paragraph 1, Article 8 shall apply for renewal of the construction enterprise registration certificates and the projects contracting manual within 1 years commencing from implementation of this Act separately according to the necessary conditions defined in Articles 6~12, and the manufacturers operating professional works supplemented or altered under Subparagraph 13, Article 8 shall apply for renewal within 2 years commencing from announcement.
In case of infringement of the above paragraph, the permit and the registration certificate shall be abolished, and the competent authority of corporation or commercial registration shall be notified to abolish the corporation or commercial registration of the enterprise or a part of registered matters.
Where a Grade C construction enterprise is renewed as a Grade C comprehensive construction enterprise according to the first paragraph above, the jobsite director appointed as full-time engineer according to the management rules of construction industry as well as the associate technicians in civil or hydraulic engineering or architecture section approved by and registered at the Ministry of Economic Affairs may retain in the positions. However, when the Class C construction enterprise applies for reexamination according to Article 17 five years after being renewed as a Class C comprehensive construction enterprise, the jobsite director and the associate technicians shall obtain the qualifications of full-time engineers as prescribed in Subparagraph 1, Paragraph 1, Article 7; otherwise, they will be stopped from executing the operations of full-time engineers in construction enterprises.
Five years after a Grade C construction enterprise that employs a jobsite director to assume full-time engineer according to original management rules of the construction industry before this Act is enforced is renewed as a Grade C comprehensive construction enterprise, the enterprise may appoint a full-time engineer or entrust an architect or technician to preside over construction management case by case and take charge of the work of full-time engineers. The architect or engineer may not establish office or be employed in a technical consultation institution, and must join the association before to take the foresaid work, and shall report the project to the municipal or county (city) competent authority at the location of the works for recording and reference after sealing a construction project on a commission basis each time.
Provisions on entrusting architects or engineers to preside over construction management, sealing, reporting, recording, and project expenses as described in the above paragraph as well as other related affairs shall be prescribed by the central competent authority jointly with related associations.
To achieve the full-time and professional objectives of the construction industry, the terminating date of applying the provisions of entrusting architects or engineers under Article 4 shall be determined by the central competent authority jointly with related associations.

Article 67 The central, municipal or county (city) competent authority may establish construction enterprise review committees to deal with the cancellation or abolishment of registration and rewarding & punishment of construction enterprises as well as punishment of full-time engineers and jobsite directors. The fundamentals for establishing the foresaid committees shall be prescribed by the central competent authority.

Article 67-1. Judicial Yuan shall designate the court to form the professional engineering tribunal consisting of the judges specialized in the engineering or experienced in trial of engineering-related cases to process the dispute over engineering.

Article 68 Where a construction enterprise in an off-island area undertakes local works, provisions of Article 7, 35 and 41 shall not apply to staffing of the construction enterprise.
The range of the above-mentioned off-island areas, staffing and related affairs shall be prescribed by the central competent authority.

Article 69 The incorporation of a foreign construction company shall first be subject to approval by the central governing authority and then application for recognition shall be filed in accordance with the Company Law or registration shall be carried out in accordance with the Commercial Registration Act. The company shall also receive a construction registration license and contracting project brochure in accordance with this law before it may commence business. If the company is registered as a Level B general constructor or Level A general constructor, restrictions about upgrade under Section 5 of 6 of Article 7 shall not be applicable. However, the performance, seniority and accumulated amount of completed construction projects shall be calculated based on actual performance carried out within the countries where the construction projects are performed and the other performance shall be excluded.
Foreign construction companies may carry out business in accordance with Section 1. Unless otherwise prohibited by law or any convention or treaty signed by the Republic of China, if the contract amount for government public construction project exceeds 1 billion dollars, it shall perform the contracting project together with a domestic general constructor.

Article 70 Upon acceptance of application for examination, granting, renewal, or alteration of construction enterprise registration certificates and projects contracting manuals, the central competent authority may charge the examination fee, certificate & license fee, and the cost of production; and the charge standards shall be determined by the central competent authority.

Article 71 The formats of the registration certificates, projects contracting manual as well as other letters and forms shall be determined by the central competent authority.

Article 72 The enforcement rules for this Act will be enacted by the central competent authority.

Article 73 This Act will take effect since it is promulgated unless the date of enforcement is otherwise prescribed.

Last Updated on 2015-02-25
 
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