Legal problems of engineering intermediary

According to the contract law, the agency fee for construction projects is illegal.

At present, China's laws do not expressly stipulate that intermediary services cannot be provided in the field of construction project bidding.

Articles 426 and 427 of the Contract Law stipulate that if the trustee-trader facilitates the establishment of a contract, the trustor shall pay remuneration as agreed. If the broker fails to facilitate the conclusion of the contract, he may not ask for remuneration, but may ask the client to pay the necessary expenses for engaging in the intermediary activities.

The claim for intermediary remuneration is conditional on the establishment of the contract, not on the performance of the contract. If the contract between the client and the third party is established due to intermediary services, the intermediary may exercise the right to claim intermediary remuneration.

In the bidding activities of construction projects, it is difficult for bidders to know the bidding information and situation of the tenderee in detail. At this time, professional intermediaries can be introduced to bid or assist in bidding related matters.