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Many central SOEs listed on the “blacklist” of the Ministry of Housing and Construction

According to Xinhua News Agency's Ministryof Self-occupation, the Ministry of Housing and Urban-Rural Development carriedout the “Two-Year Action for Project Quality Improvement” for four months.Thirty construction companies have successively listed “blacklists” of illegalconstruction quality, including China Construction, China Two Metals, and ChinaCoal. Companies such as construction companies are also on the list.

Well-known central enterprises were exposed

Recently, the Ministry of Housing andUrban-Rural Development has announced a series of typical cases of violationsof project quality. China National Metallurgical Group Corporation’sstate-level construction company China Erye has the problem of illegalsubcontracting in the construction of an engineering project in Inner Mongolia;China Coal Construction Group has been notified by the Ministry of Housing andConstruction because the estimated value of concrete rebound strength does notmeet design requirements. As one of the most influential construction andengineering enterprises in China, the Fourth Engineering Bureau under ChinaConstruction is also on the list because it ignores relevant legal requirementsand illegally subcontracts and subcontracts projects.

30 companies on the black list

The reporter’s investigation found that ofthe 30 companies, in addition to the above three central enterprises, sixcompanies including Hebei Zhongjian Engineering Co., Ltd., Liaoning DongyiConstruction (Group) Co., Ltd., and Inner Mongolia Guangsha Jianan Engineering Co., Ltd. had state-owned assets. The Bohai ConstructionGroup Co., Ltd., Nantong Daxin Engineering Co., Ltd., Xinpu Construction Group,Linzhou Bajian Group Engineering Co., Ltd., and Qixiang ConstructionEngineering Group are large-scale private enterprises and local leadingenterprises. The remaining nearly half of the listed companies are local smalland medium private enterprises.

Subcontracting is widespread

According to the specific case of the“blacklist” of the Ministry of Housing and Urban-Rural Development, the illegalactivities of listed companies can be divided into two categories: First, theconstruction field, such as the strength of steel bars, excessive steel bars,concrete hollow defects, etc.; In the construction market, there are violationsof rules and regulations such as subcontracting, subcontracting, andengineering corruption. According to industry insiders, the root cause of constructionquality problems is not only the construction companies themselves, but alsothe “black hole” of huge benefits in the construction market.

A survey by the reporter found thatbehaviors such as affiliation, subcontracting and subcontracting are widespreadin reality. Of the 30 cases on the “black list” of the Ministry of Housing andConstruction, 12 cases involved illegal subcontracting, subcontracting,affiliation, and even lending qualifications. A person in charge of anindustry-leading construction company admits to the reporter that the“first-tier enterprise winning the bid, the second-tier enterprise entering themarket, and the third-tier enterprise construction” is still the industry’s“law”.

The typical cases provided by the Ministryof Housing and Urban-Rural Development to reporters also show that the chaos inthe bidding market is also an important reason for the frequent occurrence ofproject quality accidents. In the bidding process, bidding companies oftenlower the cost in order to win. For profitability considerations, enterpriseswill further reduce costs after they get the project, and quality is naturallydifficult to guarantee.

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