The safety protection fee has not been worked out separately

On April 30, the Kunming Municipal Housing and Urban-Rural Development Bureau released the "Circular on the Management of Safety Protection and Civilized Construction Costs for Construction Projects" (hereinafter referred to as the "Notice"). The notice mandates that from May 1 onwards, all construction project owners or agencies must separate the safety protection and civilized construction costs, which are already included in the project budget, and deposit them into a special supervised account. This measure aims to ensure that safety and environmental standards are strictly followed throughout the construction process.

The safety protection and civilized construction costs refer to funds allocated by construction companies for purchasing safety equipment, implementing safety protocols, improving working conditions, and strengthening safety management in compliance with national regulations and industry standards. These costs vary depending on the type of project—whether it's residential, municipal, or infrastructure—and typically range from 0.2% to 2.5% of the total project investment.

The notice applies to all new construction, renovation, expansion, and demolition projects within the Kunming administrative area, including housing, municipal infrastructure, equipment installation, and decoration works. All such projects must adhere to the guidelines outlined in the notice, with the safety-related fees deposited into a unified city-wide special account for monitoring and use.

During the bidding process, the tendering entity or its agency must calculate the safety protection and civilized construction costs based on the project category and construction safety requirements. A qualified cost consulting firm is responsible for setting the tender control price. According to the pricing methods set by the Provincial Department of Housing and Urban-Rural Development, these costs are compiled and reviewed by the relevant construction authority. Once approved, the fees are listed separately in the construction and installation cost items. Importantly, these costs cannot be used as part of the competitive bidding process and must not be reduced. Before obtaining construction safety supervision approval, the project must present proof of payment to the designated special account. Any project failing to make this deposit will not be allowed to commence work.

The safety protection and civilized construction costs are disbursed in three stages to the construction company. Within 15 days of the project’s start and after obtaining the construction permit, the company can apply for 40% of the total cost. When the project reaches over 50% completion, the second disbursement of 40% can be made. Finally, the remaining 20% is paid after project acceptance and completion. The total amount paid cannot exceed the approved sum.

Projects that signed contracts or were already underway before May 1 must follow the safety measures specified in their construction contracts or tender documents. This ensures consistency and compliance across all construction activities in the region.