Construction companies scramble for trillions of dollars in investment projects

Source: Internet
Author: User
Keywords Construction said
Tags application bank credit business business executives credit credit limit demand design
Jahai worried about the qualification downgrade of the construction business executives are temporarily relieved. This reporter recently learned that the construction Enterprise Special Qualification Application transition period may be extended from the original 3 years to 4 years.  The Ministry of Housing and Urban and Rural Development (hereinafter referred to as "Ministry of Construction") an official in Zhejiang to the local construction industry to make the above remarks.  Prior to the 2007, the Ministry of Housing and Urban and rural construction issued a new standard of special qualifications, then stipulated that by March 2010, the formal implementation of the new standards. Relegation is to protect their jobs, the construction industry has experienced unprecedented pressure. Because according to the new standard, currently 264 of the National Super Construction enterprises in the assessment can only retain more than 100.  Without the super qualification, the Enterprise cannot undertake the trans-provincial project. This would mean that most construction companies would not be involved in 4 trillion of the major projects invested.  The major infrastructure and power grid transformation accounted for 1.5 trillion of the 4 trillion investment. In a number of industry associations and enterprises written against the letter, the Ministry of Construction, the new standard of special qualification the drafting group also issued a recent research report, in the implementation of the new standard of time to ease.  But the new standards will still be implemented.  The qualification is 4 trillion "food stamps" no more than the construction industry cares about 4 trillion projects.  According to the National Development and Reform Commission Investment Research Institute news, 4 trillion investment in the construction industry, the first pull effect is expected to drive the construction industry to increase the value of 594 billion yuan, accounting for the initial pull total of 14.85%. 4 trillion investment in the railway, highway, airport and other infrastructure projects.  And railway, highway, Machine Water Conservancy and other major infrastructure construction and urban power grid transformation in 4 trillion yuan investment accounted for the largest proportion, about 1.5 trillion yuan. The reporter obtained the aforementioned research report disclosed that the current construction industry profit rate is only 2%, in the second industry ranked first in the bottom.  In the construction industry, the average debt ratio is 65%, which ranks highest in the second industry.  According to the research report, due to the unreasonable structure and layout, most of the special-grade enterprises compete with the similar business and management mode, and the enterprises are competing with each other for lower prices and vicious profits, which leads to low profit.  Industry insiders said, in this case, construction enterprises if the original qualification can not be divided into 4 trillion items of food.  Zhejiang Province, a private construction enterprises in charge told reporters that the new standard of the implementation of the existing 264 of special qualification construction enterprises, then only 100 dozen can relegation, most of them to be eliminated.  Beijing construction Industry, a person in the Royal Villa Project design and Habitat Forum, said that the super construction enterprises lose the super qualification, not only for the enterprise itself, the province's economy will have an impact, so local governments and enterprises attach great importance to. "More than 32 floors of high-rise buildings can only be done with super quality." "Dalian Construction Association Deputy Secretary-General Song Jianmin to this reporter said, super qualification for construction enterprises is very important."  Secondary qualifications are often contracted in the local project can also, once the trans-provincial contracting project, party A is very easy to super qualification requirements will be shut out. According to Zhejiang Shaoxing construction IndustryAssociation a person introduced, special qualification new standard implementation, the special qualification construction enterprise business scope is wider, the new super will be able to cross all construction areas, including municipal, transportation, railway, road, etc., for this two years to eat "4 trillion" cake, is very important.  In view of the heavy pressure facing the new standard, construction industry calls for a moratorium on the implementation of the new standard.  Reporter learned that China Construction Association, China Construction Enterprises Association and Zhejiang Province Construction Association and many other industry organizations have a letter to the Ministry of Construction, put forward some of the new standards of high quality, premature implementation of the place, at the same time apply for the new standards of special qualifications suspended implementation.  The reason for the Ministry of Construction to assess the new qualification is that the domestic super qualified construction enterprises too much too indiscriminate, for a long time only to enter the mechanism, there is no exit mechanism; Many personal contractors are affiliated with the Super qualification enterprises, prone to accidents. As a result, the Ministry of Construction in March 2007 issued a new standard of special qualification, from the turnover, bank loans credit, scientific research capacity and many other aspects of a significant increase in the threshold.  and set a 3-year transition period, by March 2010, will arrange the new standard for the Super qualification enterprises to assess, unqualified people demoted.  With less than 1 years to go before the new standard is implemented, the Ministry of Housing and Urban and rural construction has intensified its assessment of the new standards. Starting from the end of 2008, the Ministry of Construction has sent research groups to Zhejiang, Liaoning and other provinces to investigate the new standards for the implementation of special qualifications.  But to the surprise of the research group, most construction companies have expressed differing views on the new standards. "At present, for construction enterprises, the first is to survive, not development," Song Jianmin said, the current national construction enterprises, 2/3 of the housing construction enterprises, the real estate market depression and other reasons caused the current construction industry survival is extremely difficult.  The timing of the new standards will make it harder for construction companies to survive. Liu Baoxu, vice president of the Changchun Construction Industry Association, said in a forum that the new standard is too high, too strict, from its provisions of operating income and pay taxes, Changchun has 2 super qualification enterprises, the other 800 are small and medium-sized construction enterprises.  The local market capacity determines that these 800 enterprises can no longer go up to the first level, level two enterprises.  Song Jianmin told reporters that the new standard directly with the annual sales tax to stipulate the standard of Super qualification enterprise, blocked the idea of reasonable tax avoidance of construction enterprises, as the construction industry competent departments, should not from the tax angle to stipulate construction enterprises, should consider using the project settlement provisions. Special qualification The new standard is a notable one is stipulated that the Super qualification enterprise must obtain the bank credit limit in 500 million yuan.  At present, even in the bank ordinary Mail 4 A level of construction enterprises, the city-level bank credit power is only 30 million yuan, more than the deputy provincial-level institutions approved.  From this regulation, some central construction enterprises occupy a large advantage, they can directly in Beijing to find the bank headquarters credit, and for the two or three-line city of the super qualified enterprises, the Bank 500 million yuan to obtain credit line is more difficult.The new standard on the special qualification enterprise must have relevant professional grade A design qualification requirements, so that the super qualification construction enterprises are also very nervous. Because most of the current construction enterprises do not have the ability to design, in order to relegation, super qualification construction Enterprises began to acquire local design institute.  However, there are often only 1-2 architectural design institutes in an area, which can not solve the problem of relegation.  Relegation campaign for the industry's strong opposition, the aforementioned research report did not "obvious concessions", the new standards of enterprise objections will continue to implement. In the research report, the research team pointed out that the future should be "first high and then low" to reform the construction industry standards. Super qualification construction Enterprises in the 5 years in 2002-2007 has increased 200, has not clear the mechanism, it is very normal to eliminate some of the super qualification enterprises.  The construction enterprise should have the normal mentality to the super qualification. Construction industry insiders told reporters that there are two different views on the new standard.  Some of the central enterprises want to raise the threshold, so that local construction companies can be stuck outside the super qualification door. Lu Guiqing, chairman of the five Bureau of Construction, said in the above forum, the new standard will be on the evaluation of building enterprises from the emphasis on the quality of the adjustment to the emphasis on qualities, while paying more attention to some non-financial indicators, is the performance of progress.  Li Riding, general manager of Shaanxi Construction Engineering group, also said that the new super qualification standard is an opportunity for building enterprises to upgrade.  and local super qualification enterprises mostly expressed resistance, because once the new standard, these enterprises can not contract projects, will affect the survival of enterprises.  At present, under the background of expanding domestic demand, 4 trillion invested heavily in public infrastructure such as railways, machine-tasting highways and so on, it is more difficult to share the cake to enlarge domestic demand for local super and first-level construction enterprises.  Li Riding said that the desire to adjust the special qualification standards, but also to adjust the central enterprises and local enterprises business structure, so that local enterprises more involved in the expansion of domestic demand in the project construction. The new standards have even affected the economic benefits of some large construction provinces.  In Zhejiang Province, for example, the province currently has more than 40 super qualified construction enterprises, by next March can reach the standard of not more than 5.  Some government departments in the construction provinces began to take various measures to help the local enterprises to avoid relegation, which also makes the new standard of super qualification more difficult to implement. It is reported that a province to help the provincial construction enterprises relegation, has taken the office of the provincial government issued a dispatch, so that the local state-owned commercial banks to the local level of qualified construction enterprises to grant a credit limit of 500 million yuan, but can not allocate funds, is only "empty credit letter."

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