The Ministry of Construction, the State Planning Commission, the Ministry of Finance as early as June 4, 1996 made "on the strict prohibition of contracting in the construction of the project with the capital of the notice", which mentions: "any construction unit shall not be required to require the construction unit with the capital of the contract as a condition of bidding, and even more shall not be forced to require the construction unit will be written into the works of this kind of content. Contracting contract construction units shall not use contracting with capital as a means of competition to undertake the project". The National Development and Reform Commission and other seven ministries and commissions Decree No. 30, "construction bidding methods for engineering and construction projects" clearly stipulates that "the bidder shall not raise the performance bond without authorization, and shall not force the successful bidder to advance the construction funds for the winning project". It can be seen that the advance contracting is essentially contrary to the provisions of existing laws and regulations, is a violation of the law. And in the Ministry of Construction in 2003 issued "on the cultivation and development of general contracting and engineering project management enterprises of the guiding opinions" mentioned, encourage the general contracting enterprises in accordance with the BT way to organize the implementation of the construction project with the conditions.
2, the affiliation of assets The buyback of BT projects is essentially a transfer of assets. During the construction period, the ownership of engineering assets to the construction party, after the completion of the repurchase, the ownership of engineering assets transferred to the owner. In the advance contracting, the ownership of engineering assets are owned by the owner, the construction company does not own the project during the construction period.
3, investment risk BT projects are generally required by the project builder or the local government to issue a project buyback commitment letter, as well as a third party (generally for the bank) to provide the project buyback letter of guarantee, so the project builder's investment recovery is guaranteed, the investment risk is small. While in the advance contracting method, the project owner generally can not issue a similar guarantee, at the same time, due to the ownership of project assets belong to the project owner, once the project assets are liquidated by the bank, the funds advanced by the contractor will be difficult to recover, the risk is very high.