On November 30 last year, the Ministry of Housing and Urban-Rural Development issued a reform plan for the qualification management system of construction engineering enterprises, stating:

Do a good job in revising qualification standards and renewing certificates to ensure a smooth transition. Carry out the revision of construction engineering enterprise qualification management regulations and standards, and reasonably adjust enterprise qualification assessment indicators. Set a one-year transition period, after which simple certificate renewal will be implemented, that is, new qualification certificates will be directly issued according to the correspondence between old and new qualifications, and qualifications will no longer be re-evaluated.

The one-year transition period has ended. Recently, the housing and urban-rural development departments of Sichuan and Yunnan issued notices to continue extending the validity period of relevant construction engineering enterprise qualifications.‍

Notice of the Department of Housing and Urban-Rural Development of Yunnan Province on Continuing to Extend the Validity Period of Qualifications of Relevant Construction Engineering Enterprises

To all prefectures and municipal housing and urban-rural development bureaus, and relevant enterprises:

In order to deepen the reform of "streamlining administration, delegating powers, improving regulation, and optimizing services" in the construction industry and make preparations for the reform of construction engineering enterprise qualifications, the Provincial Department of Housing and Urban-Rural Development has decided to continue extending the validity period of construction engineering enterprise qualifications in our province. The relevant matters are hereby notified as follows. 1. For qualification certificates for construction, engineering supervision, engineering testing, engineering survey, and engineering design enterprises issued by the Provincial Department of Housing and Urban-Rural Development and the housing and urban-rural development administrative departments of all prefectures (cities), if their validity period expires between July 1, 2021 and June 29, 2022, they shall be uniformly extended to June 30, 2022. 2. The validity period of the above qualification certificates will be automatically extended on the Yunnan Province Construction Market Supervision and Integrity Platform and the Yunnan Province Survey and Design Consulting Industry Management Information Network. During the validity period of the qualification certificate, the electronic certificate has the same legal effect as the paper certificate. 3. From the date of publication of this notice, applications for renewal of the above construction engineering enterprise qualifications whose qualification certificate validity period expires before June 30, 2022 shall not be accepted temporarily. 4. If the Ministry of Housing and Urban-Rural Development has new regulations on the extension of the validity period of construction engineering enterprise qualifications, our department will promptly adjust and announce the validity period of construction engineering enterprise qualifications in our province as required. Contact persons and telephone numbers: Liu Jianzhou, 0871-64320971; Peng Caineng, 0871-64618387.

Department of Housing and Urban-Rural Development of Yunnan Province

November 26, 2021‍

Announcement of the Department of Housing and Urban-Rural Development of Sichuan Province on Continuing to Extend the Validity Period of Qualifications of Relevant Construction Engineering Enterprises

In order to deepen the reform of "streamlining administration, delegating powers, improving regulation, and optimizing services" in the construction industry and make preparations for the reform of construction engineering enterprise qualifications, after research, it is decided to continue extending the validity period of construction engineering enterprise qualifications in our province. The relevant matters are hereby announced as follows.

1. According to the provisions of our department's "Announcement on Extending the Validity Period of Qualifications of Relevant Construction Engineering Enterprises" (No. 149 of 2020), for survey, design, construction, supervision, and testing enterprise qualification certificates whose validity period has been extended to December 31, 2021, and for enterprise qualification certificates whose validity period expires between January 1, 2022 and June 30, 2022, the validity period of the qualification certificates shall continue to be extended to June 30, 2022.

2. The validity period of relevant construction engineering enterprise qualifications will be automatically extended on the Sichuan Province Construction Market Supervision and Integrity Integrated Platform and uploaded to the National Construction Market Supervision Public Service Platform. The original enterprise qualification certificates shall remain valid and can still be used for project bidding and engineering construction activities during this period.

3. From the date of publication of this announcement, our department shall temporarily not accept applications for renewal of the above construction engineering enterprise qualifications whose qualification certificate validity period expires before June 30, 2022.

4. Qualifications issued by the housing and urban-rural development administrative departments of all cities (prefectures) and counties (cities) with expanded powers may continue to be extended with reference to the provisions of this announcement.

5. If the Ministry of Housing and Urban-Rural Development has new regulations on the extension of the validity period of construction engineering enterprise qualifications, our department will promptly adjust and announce the validity period of construction engineering enterprise qualifications in our province as required. Hereby announced.

Department of Housing and Urban-Rural Development of Sichuan Province

November 8, 2021‍

In addition, the Department of Housing and Urban-Rural Development of Hubei Province recently issued the "Policy Questions and Answers on Construction Enterprise Qualifications (Third Edition)", which clarified the requirements for qualification renewal and pointed out that qualification certificates that have expired at this stage shall be automatically extended to December 31, 2021 in accordance with regulations.

The requirements for qualification renewal are as follows:

1) The enterprise's net assets meet the standard requirements. The net assets in the enterprise's financial statements for the previous year or the current period shall meet the highest standard among the qualifications it holds. Net assets are not cumulative.

2) The number of constructors meets the minimum standard requirements. For example, if Company A has a Grade II qualification for general contracting of building construction engineering and a Grade II qualification for general contracting of water conservancy and hydropower engineering, and the corresponding Grade III qualification standard requires 5 and 8 constructors respectively, then Company A shall have no fewer than 8 registered constructors (regardless of specialty or grade). For another example, if Company B has a Grade I qualification for professional contracting of building decoration and renovation engineering and a Grade II qualification for building curtain wall engineering, and the corresponding Grade II qualification standard requires 3 and 4 constructors respectively, then Company B shall have no fewer than 4 registered constructors (regardless of specialty or grade). For another example, if Company C has a Grade II qualification for general contracting of building construction engineering and a Grade I qualification for professional contracting of building decoration and renovation engineering, and the corresponding Grade III and Grade II qualification standards require 5 and 3 constructors respectively, then Company C shall have no fewer than 5 registered constructors.

3) Qualification renewal implements the notification and commitment system for approval. As long as the approval platform prompts the content to be filled in, the application form printed online, after being signed and sealed by the legal representative, shall be mailed to the provincial department; no attachment materials are required.

4) Qualification certificates that have expired at this stage shall be automatically extended to December 31, 2021 in accordance with regulations. After the new standards are promulgated, the new standards shall be implemented. However, for qualifications with a validity period of 1 year, an application for re-evaluation shall be submitted in advance before the expiration of the validity period.‍‍