mineral resources

Yingting lawyer reminds

Dear government project bosses, I must tell you a real case today.

The government owed 202 million project funds and refused to pay it for three years.

There is an environmental protection technology company in Wuxi, Jiangsu, called Delinhai. They signed a contract with the Water Conservancy Bureau of Tonghai County, Yuxi, Yunnan in 2019. What are they doing? Governance of Qilu Lake in Tonghai County. The project has been completed and accepted, and the project payment has been settled.As a result, the government said it had no money and would not provide it for the time being..

This delay lasted three years.

How much do you think we owe?202 million.

Delinhai couldn't wait any longer. On May 28 this year, he filed a lawsuit with the Yuxi Intermediate People's Court, demanding that the Water Conservancy Bureau pay the arrears of project funds and interest.

Why do I talk about this case specifically?

Because it's so common. When our private enterprises and government work on projects, what they fear most is not that the work is difficult, but that they won’t get paid after the work is done. Moreover, there is a characteristic about the government's default in project payment - it is not that it refuses to pay, but that it pays slowly and delayedly. Many bosses are thin-skinned and are embarrassed to press, and it is useless to press.

I have seen too many business owners say to me: "Lawyer Zhu, am I unable to sue the government in this situation?" "If I sue, will I be unable to work locally in the future?"

Let me tell you clearly: If the government owes money, it must be repaid and you can sue.

The law supports private enterprises

The Supreme People's Court has long made its position clear: If the government fails to fulfill the infrastructure and public service contracts signed between private enterprises and the government,The court supports private enterprises in asking the government to bear liability for breach of contract.

Moreover, the cause of Delinhai's lawsuit this time is very clear-contract dispute. The contract was signed, the project was inspected, the settlement form was signed, and the amount owed was written clearly in black and white. In this kind of case, as long as the evidence is complete, the probability of winning is very high.

Litigation strategy is important

But I would like to remind everyone that when encountering government debt disputes, litigation strategies are very important:

First,Contracts and settlement materials must be kept intact. Many business owners are embarrassed to leave evidence when cooperating with the government, thinking that "we have a good relationship, so we don't need to be so detailed." Something really went wrong and I couldn't even get a settlement form.

Second,Do not exceed the statute of limitations. The statute of limitations for government debt disputes is three years. If the statute of limitations is exceeded, the right to win the lawsuit will be lost.

Third,Apply for property preservation when necessary. Some local governments may transfer assets during litigation or void project contracts for various reasons. Property preservation can freeze the other party's account to prevent malicious transfers.

Yingting lawyer reminds

Don’t be afraid if the government defaults on project payments. If you don't sue him, he will never give it to you. Delinhai’s 202 million case tells us a truth:Law is the most powerful weapon for private enterprises to safeguard their rights.

Of course, I suggest that before you decide to litigate, it is best to find a professional lawyer to evaluate the case to see if the contract terms and evidence chain are complete, and strive to get your money back in one go.

If you have any questions about government debts or project payment disputes, please come to me at any time. I am lawyer Zhu Zi. I help private companies collect debts. We have experience.

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