Shaanxi Construction Corporation loses the construction project contract dispute; Ningde Intermediate Court upholds the first-instance judgment.

March 30, 2026 News, Tianyancha data shows that the China Judgments Online recently published a judgment document where Shaanxi Construction Engineering Group Co., Ltd. was the defendant in an appeal case, case number (2026) Min 09 Min Zhong 202, involving a construction project contract dispute. The court was Ningde Intermediate People’s Court of Fujian Province. The judgment date was March 25, 2026. Shaanxi Construction Engineering Group Co., Ltd. lost the case, while its Fujian branch and Fujian Antongda Technology Co., Ltd. won.

Below is a detailed report:

This case is an appeal regarding a construction project contract dispute. Appellants Fujian Antongda Technology Co., Ltd. and Shaanxi Construction Engineering Group Co., Ltd. Fujian Branch filed an appeal with Ningde Intermediate People’s Court of Fujian Province against the first-instance judgment. The appellee, Shaanxi Construction Engineering Group Co., Ltd., did not respond.

First-instance court findings of fact:

1. Contract signing details: On January 25, 2021, Shaanxi Construction Engineering Group Co., Ltd. Fujian Branch subcontracted the fire protection works for the Ningde Elementary School expansion project to Fujian Antongda Technology Co., Ltd., signing a “Subcontract Agreement” and a “Supplementary Agreement,” with a 32% discount rate as management fee, and a two-year warranty period.

2. Contract performance: Fujian Antongda Technology Co., Ltd. completed the construction; fire safety inspection passed on March 25, 2022; project completion acceptance was approved on June 17, 2022; and it was put into use in August of the same year. Shaanxi Construction Engineering Group Co., Ltd. Fujian Branch paid a project payment of 2,644,348.33 yuan, and Fujian Antongda Technology Co., Ltd. received an interest subsidy of 35,824.78 yuan for acceptance bills.

3. Project review: According to the review entrusted by the Dongqiao Economic and Technological Development Zone Financial Investment Review Center, the project cost involved was 3,904,839 yuan; the first-instance court commissioned an appraisal agency to assess the costs of extracontractual items (such as rain shelters, fire passage signage, etc.), totaling 845,495 yuan; and the extracontractual certification part was 27,280.56 yuan.

First-instance court opinion:

1. Confirmation of settlement price: Based on the fiscal review of 3,904,839 yuan, plus appraisal costs and certification fees, totaling 4,777,612.56 yuan; after a 32% discount as per contract, the final project price was 3,257,506.32 yuan.

2. Payment obligation: Shaanxi Construction Engineering Group Co., Ltd. Fujian Branch still owed 648,982.77 yuan (including interest compensation), which should be paid along with interest; Shaanxi Construction Engineering Group Co., Ltd. bears supplementary repayment responsibility for the branch’s debt; the court dismissed other claims by Fujian Antongda Technology Co., Ltd. and the counterclaim by Shaanxi Construction Engineering Group Co., Ltd. Fujian Branch.

Appeal focus and court opinion in the second instance:

1. Whether the payment conditions are fulfilled: The defect liability period (2 years) for the project has expired, so the payment condition is met; the fire safety acceptance not being completed was not caused by Fujian Antongda Technology Co., Ltd., and cannot be used as a reason for nonpayment.

2. Recognition of the total project price: The control price list should be based on the fiscal review results; the 32% discount rate is a voluntary agreement between both parties, with no basis for adjustment; items like rain shelters are within the scope of the contract and should be subject to the agreed discount.

3. Whether the first instance court omitted any claims: Fujian Antongda Technology Co., Ltd.'s claim to lower the discount rate is not an independent claim; it was already examined in the first instance, with no omission.

Second-instance judgment:

The appeal is dismissed, and the original judgment is upheld. The case acceptance fee of 30,970 yuan is borne by Fujian Antongda Technology Co., Ltd. (20,680 yuan) and Shaanxi Construction Engineering Group Co., Ltd. Fujian Branch (10,290 yuan). This judgment is final.

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