Factory demolition

Nowadays, factory demolition is also very common. Unlike residential buildings, factories are of a business nature, so there will not only be compensation for the house itself, but also compensation for operating losses caused by production shutdown, equipment relocation costs, etc. How much does it cost to demolish a square meter of factory building? What compensation programs are available?
It has always been an issue that everyone is very concerned about. The editor of Yingting Law Firm will talk about it in detail today.

First of all, does the factory you build have legal procedures (property certificate)? Does your factory have legal procedures (I guess so)?
Since the land is leased, the lease agreement is very important. The lease agreement must have clauses about compensation, and compensation should be carried out in accordance with the agreement. What are the compensation items for factory demolition?
1. Compensation price for land use rights area

What is the regional compensation price for land use rights?
Generally speaking, it is compensation for land use rights. It is a regional compensation price calculated based on the nature of occupation and service life. Specifically, how are land use rights calculated? There are several situations:
1. Land contract management rights:
Land contracted by villagers in this village;
2. The right to use collective construction land:
Collective construction land use certificate obtained through auction or buyout;

3. Methods of transfer and allocation of state-owned land use rights:
The industrial land qualification obtained from the transfer of state-owned land, or the compensation range for land use rights obtained through allocation, but the lease rights are still within the designated bond range and are not classified as property rights. Therefore, there is no land use rights compensation for lease rights.
2. Factory reset price

Yingting Law Firm handles many complex dispute cases in the field of administrative litigation and has a profound theoretical foundation and practical experience. Use solid legal knowledge and theoretical literacy to study a series of legal issues in administrative litigation, and have accumulated rich experience in handling cases in many aspects such as house demolition disputes, agricultural land expropriation and conversion disputes, illegal construction disputes, administrative agreements, administrative promises, land rights confirmation, land contract contracts, civil contracts, etc. We always practice the concepts of rigorous, realistic, civilized and just rule of law and strive to safeguard the legitimate rights and interests of our clients.

The replacement price of a factory building is how much it will cost after replacement or new construction. For example, buildings, structures, facilities, etc. are different, so the compensation is also different. It must be calculated according to the realistic standards required for the factory building.
3. Losses due to suspension of production and business operations
Losses caused by the suspension of production will be compensated in one go, but must meet the conditions for normal production of the enterprise, such as business license, tax registration, tax records, actual business activities, etc.

It should also be noted that the production address and registered address must be the same
What compensation should be paid for business suspension losses?
(1) Expected profit loss. The expected profit that can be generated in a year is one million. The demolition caused business interruption and caused a three-year loss of production and business suspension. Therefore, the three-year loss can be compensated.
(2) Loss due to breach of contract. The company signed a contract with the customer for one million yuan.

Since the demolition payment cannot be delivered on time, the liquidated damages of one million yuan are 50,000 yuan, and the company needs to be compensated for its losses due to breach of contract.
(3) Financial costs, borrow one million from the bank, and pay financial cost interest every year. Now due to business interruption, financial costs are increasing cumulatively, so financial costs must also be included in the loss of production and business suspension.

These are possible losses. Many people will ask about the issue of severance pay for personnel placement. We must correct it. Severance pay for personnel placement only appears in state-owned enterprises and collectively owned enterprises, and generally does not exist in small and medium-sized enterprises and private enterprises. It is basically included in the loss of production or suspension of operations.
4. Decoration and accessories
You should know that decoration and accessories cannot be moved in most cases, and these must be calculated based on replacement cost, such as marble floor decoration.

5. Machinery and equipment
Machines are divided into movable and immovable. Immovable machinery and equipment must be replaced like a house at a new price, and movable machinery and equipment are compensated for relocation costs.

The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail. If you want to know more about this, you can consult lawyer Ying Ting for one-on-one online consultation.