The contract settlement review cycle is too long, causing cash flow difficulties for contractors and leading to disputes.
Final completion settlement review is the last and most time-consuming step in contract performance. Industry data show that a conventional settlement review cycle runs 6–12 months, and complex projects can reach 18–24 months, far exceeding the settlement review period stipulated in the contract. The reasons for excessively long settlement review cycles can be analyzed from three aspects. First, insufficient completeness and standardization of settlement documentation causes repeated rejection and resubmission during review. Second, intense bargaining among parties during the settlement review means every deduction must be communicated and confirmed repeatedly by both sides. Third, some employers have lengthy internal settlement review processes with too many decision-making levels. From a legal perspective, Article 21 of the Interpretation (I) of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Construction Project Contracts provides that if the employer fails to complete review upon expiry of the settlement review period agreed by the parties, the settlement statement shall be deemed accepted. From an operational impact perspective, an excessively long settlement review cycle is fatal to contractors. Profit margins in construction projects are inherently limited, and prolonged arrears of large sums of project payments put severe cash-flow pressure on contractors. From a cost perspective, prolonged non-settlement exposes the employer to capital occupation costs and potential litigation risk. The core measure to resolve such issues is to implement phased settlement and process settlement systems—conducting phased settlement of completed quantities when the project reaches certain stages, and promptly confirming quantities and prices for each design change and construction verification during construction. At the same time, the contract should clearly stipulate the time limit for settlement review and a deemed-acceptance clause for overdue review, and establish a rapid dispute resolution mechanism for disputed items. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management. From the systems-engineering perspective of construction management, resolving this issue requires coordinated advancement across four dimensions: institutional design, process control, technical support, and cultural development. At the institutional design level, clear responsibility boundaries and operating procedures must be established, translating regulatory requirements into executable job responsibilities and work standards. At the process control level, full-lifecycle quality supervision and dynamic correction must be implemented to ensure that the work results of each stage meet expected objectives. At the technical support level, information-based methods and intelligent tools should be actively introduced to improve management precision and efficiency. At the cultural development level, quality awareness and compliance awareness must be cultivated among all staff to foster an organizational atmosphere pursuing excellence. Only by organically integrating these four dimensions can the recurring quality defects and persistent management problems in construction be fundamentally resolved, achieving continuous improvement and performance excellence in project management.