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November 19, 2010

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Contractors' relationship and qualifications under spotlight

THE companies involved in the renovation of the downtown high-rise that went up in flames on Monday are coming under increasing scrutiny.

The media, residents and web users are asking questions about the relationship between contractor Shanghai Jing'an Construction and sub-contractor Jiayi, and their qualifications.

The cost of the renovation project at the Jiaozhou Road apartment buildings in Jing'an District was 35 million yuan (US$5.3 million), according to the notice board at the construction site.

But the actual value of the contract between the contractor Shanghai Jing'an Construction and Jiayi was only 12 million yuan, said the China Business News yesterday.

Both the contractor Shanghai Jing'an Construction and the supervising party, the Jing'an Construction Engineering Supervision, belong to the district's construction and communications commission. Sub-contractor Jiayi is a subsidiary of Jing'an Construction.

According to the commission's website, Jiayi is registered with capital of 5 million yuan and holds a "second-class decoration qualification." Under the terms of this certificate it is required to have at least 25 technicians and 30 managers. However, an insider told Shanghai Daily yesterday that Jiayi, which is based in a narrow residential lane on Changde Road in Jing'an District, has only 10 formal employees.

Moreover, in 2006 Shanghai Urban Construction and Communication Commission reported that the company did not provide the conditions for safe construction.

And the annual safety quality examinations of both Jiayi and Jing'an Construction were not carried out in 2008, according to the commission's website.

In July this year, Jiayi was in charge of a renovation project of the water supply system at Sanhe Complex in Jing'an District, but the project was halted after a week in the face of opposition from residents.

According to a resident of Sanhe Complex, surnamed Yu, none of the workers hired by Jiayi could provide a license or qualification for conducting the work. Yu said many residents feared that they were unlicensed workers hired from the streets.

Responding to residents' concerns at the time, Jing'an Construction Co said all workers would conduct the work according to a detailed engineering drawing, but did not say whether workers and the company were qualified to carry out the renovations.

Bai Liang, the Sanhe complex committee director, said they had looked at hiring a company to renovate the water supply system before July, with the cost expected to be 3 million yuan.

However, the district government offered help, and planned to spend 6 million yuan on the project, with the committee expected to pay about 20 percent of the total cost. Although the total cost had doubled, residents still signed contract with Jiayi, as - taking the government's contribution into account - it was cheaper for them.

Meanwhile, the supervisor of the energy-saving project, Jing'an Construction And Engineering Supervision Co, noted dangers at the Jiaozhou Road building in October and early this month. Last Thursday inspectors found a winding engine was broken, but workers repaired it.




 

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