DeHeng Successfully Represented CSCEC Subsidiary in EPC Contract Dispute, Recovering RMB 820 Million in Economic Losses

2025-08-19

Recently, in a construction contract dispute case where DeHeng represented a subsidiary of the central state-owned enterprise China State Construction Engineering Corporation (CSCEC) as the general contractor in a lawsuit against the project owner, a company based in Handan, Hebei Province, the Handan Intermediate People’s Court issued a first-instance judgment. The judgment fully adopted the arguments presented by DeHeng’s lawyers, supported all claims, and ultimately recovered over RMB 820 million in economic losses for the central state-owned enterprise. The litigation fees of RMB 4.01 million were entirely borne by the defendant. The defendant did not appeal, and the first-instance judgment has taken effect smoothly.

In this case, the CSCEC subsidiary, as the general contractor, undertook a municipal project in Handan in 2019 and entered into an EPC general contracting agreement. Due to prolonged delays in payment by the defendant, a Handan-based company, the normal business operations of the client were severely impacted.

The DeHeng team visited the construction site, studied relevant legal policies pertaining to the case, and submitted extensive recalculated engineering data to the court. Based on the evidence provided by the handling lawyers, the presiding judge thoroughly evaluated the basis and reasoning for each claim and rendered the first-instance judgment with full respect for the facts and evidence of the case.

The case was represented by lawyers Zhang Zhongli and Li Le, with primary support from Jiang Zhenzhen and Zhang Molin. The client expressed high recognition for the professional legal services of the DeHeng team and provided significant trust and support throughout the case’s planning and implementation phases.