China Issues New Judicial Interpretation on Construction Contracts

Article by
CNBW member CMS 

On June 29, 2026, the PRC Supreme People's Court officially released the Judicial Interpretation (II) on Issues Concerning the Trial of Construction Project Construction Contract Disputes ("Interpretation II"). Interpretation II took effect on June 30, 2026.

I. Background
Interpretation II serves as a systematic update to construction-industry adjudication rules. It addresses widespread market irregularities, including affiliation contracting, illegal subcontracting, and violations of tendering related rules. In addition, Interpretation II establishes a coordinated disciplinary mechanism that integrates civil adjudication with administrative enforcement and criminal oversight.

All-together, these reforms are expected to reshape transactional practices, compliance standards, and dispute-resolution expectations across the construction industry.

II. Core Legislative Revisions and Impacts ...
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Partner, CMS, China
+ 86 21 6289 6363
nicolas.zhu@cmslegal.cn