DeHeng Helped Client Avoid Loss of Over RMB 11 Million in a Construction Contract Dispute

2022-04-12

After rounds of negotiations, a dispute over a construction contract was recently settled through mediation, in which DeHeng reduced the economic loss by more than RMB ten million for the client and safeguarded the client's lawful rights. 

Case summary:

In December 2013, a central state-owned construction company in Xiamen (hereinafter referred to as "Company A”) subcontracted the water and electricity installation project of an office building in the city to Company B which had a business crisis later. So in December 2016, Company A subcontracted the project to Company C, and in January 2017, signed the Subcontract Exit Settlement Agreement with Company B and C. In June 2019, Company C signed the Creditor’s Right Transfer Agreement with Company D, specifying that Company C will transfer all its creditor’s rights against the project funds of Company A to Company D. In January 2020, Company D filed a lawsuit against Company A, demanding the payment of construction funds and interest totaling more than RMB 13 million.

Company A decided to hire DeHeng's Xiamen Office to represent it in this case. After accepting the mandate, our Xiamen Office formed a litigation service team led by lawyer Yang Xiaoling.

Finally, after many on-the-spot investigations and appraisal demonstration meetings, the two parties involved finally reached a settlement on all issues such as the transfer of creditor's rights, project arrears, appraised cost, etc., and the court issued a conciliation statement to conclude the case. Company A therefore saved a loss more than RMB 11 million.