Construction Contract Dispute Case Between a Xiamen Construction Company and the Project Owner

Case Summary

Plaintiff Xiamen Construction Co., Ltd. entered into a "Construction Contract" with Defendant Fujian Real Estate Development Co., Ltd. to construct a residential project in Xiamen, with a total contract value of 1.2 billion yuan. After the project passed final acceptance inspection, the Defendant paid only 80% of the construction costs, withholding the remaining 2400 thousand yuan on grounds of alleged quality issues requiring rectification. Despite repeated demands for payment, no resolution was reached; thus, Plaintiff filed suit requesting the outstanding construction payments and interest for late payment.

Key Dispute

1.Whether the project in question has quality issues as alleged by the defendant.

2.Are the defendant's defenses against paying for the construction work valid?

3.Does the plaintiff's claim for overdue payment interest comply with legal regulations?

Case Strategy

1.Fixed core evidence: project acceptance report, settlement documents between both parties, payment vouchers for construction funds, and records of payment collection communications.

2.With respect to the defendant's quality defense, we apply to the court for commissioning a third-party judicial appraisal institution to conduct a comprehensive appraisal of the engineering quality, confirming that it complies with the contractual agreement and mandatory national standards.

3.The defendant has used the project in question extensively after its completion acceptance but refuses to pay the construction costs on the grounds of quality issues, which violates the principle of good faith.

4.Calculate overdue payment interest accurately, including the principal amount, start and end dates, and interest rate, in accordance with the contract terms and applicable laws.

Processing Result

The court ordered the defendant to pay the plaintiff the outstanding construction funds of 2400 ten thousand yuan, as well as overdue payment interest calculated on a principal amount of 2400 ten thousand yuan at 1.5 times the Loan Prime Rate (LPR) published by the National Interbank Funding Center from the date the construction funds were due until the date of actual payment. The defendant shall bear all litigation costs and judicial appraisal fees for this case.

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