Construction project subcontract disputes between Luzhou Tianyuan Construction Company and China Railway Construction Engineering Group

In 2007, China Railway Construction Engineering Group, as the general contractor, was responsible for the construction of ‘The Naqu Logistics Center of Qinghai-Tibet Railway’. Since August 2008, China Railway Construction Engineering Group, as the employer, and Luzhou Tianyuan Construction Company, as the contractor, have signed several agreements on the construction of part of the project of Naqu Logistics Center. The agreements indicated that Luzhou Tianyuan Construction Company should be responsible for organizing workers for construction, and the project should be accepted and delivered in July 2009. After that, Luzhou Tianyuan Construction Company sued China Railway Construction Engineering Group because the construction labor cost increased and both parties signed multiple visa change orders during the construction, claiming that China Railway Construction Engineering Group should pay an additional CNY 70 million for the labor service. As the agent of China Railway Construction Engineering Group, Hylands thoroughly studied all the aspects of the case. Hylands verified the authenticity of a large number of invoices, the multiple visa change orders, and other evidence submitted by the other party through field visits, investigations, applications for identification, etc., and found out that the pieces of evidence are not legitimate and valid. Meanwhile, the attorneys of Hylands obtained the judge’s approval by drawing case charts and making presentations with the help of visual aids. In the end, the judge ruled to support only the other party’s lawsuit claim of nearly CNY 4 million for labor service and rejected all other lawsuit claims.

Based on the client’s needs and key risks, Hylands provided practical solutions and optimized services in this case in combination with its advantages and high-quality social resources, which successfully reduced the loss of over CNY 60 million for China Railway Construction Engineering Group.