The social security fee(hereinafter referred to as the construction project social security fee)in the pricing of construction projects is an essential project fee in the construction contract.Which party is the main payer of the social security fee in the construction process?Which party is the beneficiary of social security fees?Below is a detailed legal analysis,but due to different legal provisions in different regions,the results of handling social security fees for construction projects also vary.Due to regional reasons,this article mainly refers to the relevant regulations of other regions to analyze the social security fees for construction projects in Henan Province.

Definition of social security fees in construction project pricing

Social security fees include various social security fees paid in accordance with national regulations,employee housing provident fund,and fees for retired personnel that have not yet been transferred.Also known as"social security".It is the payment made by the employer and the employee to the social security institution or other third-party institution in accordance with the legally prescribed payment ratio and payment method after establishing a labor relationship.

There is no unified legal concept for social security fees in construction projects.In the field of construction projects,they are generally included in the pricing of construction projects and listed separately as social security fees.As the name suggests,social security fees in the field of construction projects refer to specific and clear rights and obligations such as payment methods,payment ratios,payment subjects,and beneficiaries.

Legal Analysis of Social Security Fees in Valuation of Construction Projects

There is no unified national legal standard for the application of social security fees in construction projects,but in specific applications,provinces,autonomous regions,and municipalities directly under the central government generally have regulations or policies that comply with local landlord laws and regulations.

According to Article 5 of the"Management Measures for the Collection of Social Security Fees for Construction Projects in Inner Mongolia Autonomous Region"implemented on March 1,2006,the social security fees for construction projects shall be calculated based on the national and autonomous region construction project cost calculation rules,and shall be uniformly calculated at 3.5%of the project cost(pre tax)within the administrative region of the autonomous region.Article 6 stipulates that if the construction project duration is within two years,the construction unit shall pay the social security fee for the construction project in full at once.It can be seen that in Inner Mongolia Autonomous Region,the calculation standard for social security fees for construction projects is 3.5%of the project cost,which is paid in full by the construction unit in a lump sum.According to the regulations,the management agency of social security fees for construction projects shall allocate the funds to construction enterprises upon receiving the funds from the construction unit.After receiving the construction project social security fees and adjustment funds allocated by the construction project social security fee management agency,construction enterprises shall,in accordance with the law,pay the social basic pension insurance and unemployment insurance premiums of employees to the local social security agency.On January 1,2018,the newly issued and implemented"Notice of the People's Government of Inner Mongolia Autonomous Region on Suspending the Collection of Social Security Fees for Construction Projects"in the region revised the original methods.Starting from January 1,2018,for newly started construction projects in the administrative region of the autonomous region,the collection of social security fees for construction projects should be suspended.Construction enterprises should,in accordance with the policies and regulations of the country and the autonomous region on the composition of construction and installation project fees,effectively do a good job in the social security work of enterprise personnel.Since then,the social security fees for construction projects will no longer be collected in Inner Mongolia,and a new model will replace the original implementation.

The Opinion of Henan Provincial Department of Housing and Urban Rural Development on Strengthening the Management of Social Security Fees in Construction Engineering Cost Valuation Projects(Yujian Jian[2012]No.76)also has clear provisions on social security fees for construction engineering.In Henan Province,the social security fee in the construction project cost valuation project is called"construction labor protection fee".It is a special expense paid by construction enterprises for workers,including pension insurance,medical insurance,unemployment insurance,etc.Belonging to non competitive expenses,the construction unit shall prepay the construction labor protection fee before applying for the construction permit for the construction project,and settle the construction labor protection fee before the completion and filing of the construction project.According to the provisions of this opinion,it is known that the main payer of construction labor insurance fees is the construction unit.However,the construction labor insurance premiums collected by the supervisory unit shall be disbursed to the construction enterprise in accordance with regulations.The construction enterprise shall pay the employee's pension insurance premiums,unemployment insurance premiums,medical insurance premiums,and relevant policy subsidies to the local social insurance agency in accordance with regulations.However,on September 7,2016,the notice on abolishing the"Opinions of the Henan Provincial Department of Housing and Urban Rural Development on Strengthening the Management of Social Security Fees in Construction Engineering Cost Pricing Projects"(Yujian Jian[2012]No.76)has abolished the above management opinions.And it is explicitly stipulated that the construction labor protection fee shall be directly calculated by the contracting parties during the preparation of the engineering pre settlement,and the social security fee in the project shall be directly paid by the employer to the contractor.

According to the legal provisions of Henan Province on construction labor protection fees,it is known that the construction labor protection fees are directly paid by the employer to the contractor.But for the employer,the employer should clarify this cost in the preparation of the project budget,bidding base price,and bidding control price.For the contractor,they should separately itemize this part of the cost when bidding,signing the construction contract,and completing the settlement.They should calculate the construction labor insurance premiums in full according to the billing standards issued by the provincial housing and urban-rural construction administrative department,and pay the employee pension insurance premiums,unemployment insurance premiums,and medical insurance premiums to the social security agency in full according to relevant regulations.

Therefore,in the region of Henan Province,the main body responsible for the construction labor insurance premiums is the construction unit.Although the employer should pay this part of the fees to the contractor,the contractor should fully pay the relevant fees to the local social insurance agency in accordance with regulations,and the subject enjoying the construction labor insurance premiums should be the workers.

Regarding the legal issue of social security fees calculated in construction project costs,there are different regulations or policy provisions in other regions to confirm.Therefore,it is also recommended that contractors should strictly implement the payment regulations of social security fees in construction project costs based on the specific location of the project and in combination with local regulations and policy provisions,in order to effectively protect the legitimate rights and interests of workers.

Meanwhile,according to the"Valuation Specification for Construction Engineering Bill of Quantities"GB50500-2013,social insurance premiums in construction projects are classified as regulated fees,including pension insurance,unemployment insurance,medical insurance,work-related injury insurance,maternity insurance,and housing provident fund.Regulatory fees refer to the fees that construction enterprises must pay according to national laws and regulations,as stipulated by the provincial government or relevant provincial authorities,and should be included in the cost of construction and installation projects.The prescribed fees must be calculated in accordance with the regulations of the national,provincial,and industry construction authorities,and shall not be used as competitive fees.When bidding,this part of the fees shall not be discounted as competitive fees,otherwise it may lead to quality problems in the construction project and the inability to protect personal rights and interests.