The legal team led by Attorney Jun Yin, Senior Partner at Landing Law Offices, successfully represented a Shandong-based company in a construction contract dispute against a Jiangsu-based company. Under the coordination of an Intermediate People’s Court, the parties reached a settlement, with the Jiangsu company acknowledging the claims raised by the Shandong company and committing to pay the outstanding project payment of over RMB 100 million in installments.

The dispute arose from a wind power project structured under an “EPC + financial leasing” model. After winning the bid as part of a consortium, the Shandong company entered into an EPC General Contract with the Jiangsu company, taking on responsibility for civil works, equipment installation, commissioning, and operation and maintenance during the warranty period. Meanwhile, the Jiangsu company arranged project financing through a financial leasing company via a “sale-and-leaseback” mechanism.

The project commenced in 2022, achieving full-capacity grid connection in July 2023 and overall completion and acceptance in May 2024. However, the Jiangsu company withheld over RMB 100 million in project payments, citing alleged disputes over project volume, quality issues, and grid connection delays.

Attorney Jun Yin’s team conducted a comprehensive review of the project’s contractual framework, including the consortium agreement, EPC General Contract and supplemental agreements, guarantee agreements, and leasing contracts. Based on a clear mapping of the parties’ rights and obligations, the team carried out a detailed analysis of project volumes, cash flows, and payment obligations, while fully assessing the legal risks involved. Leveraging this groundwork, the team developed a multi-tiered litigation strategy. Through well-prepared filings, strong advocacy during two court hearings, and subsequent negotiations, the team effectively combined litigation with settlement strategies, ultimately leading the parties to reach a mediated resolution that efficiently safeguarded the Shandong company’s legitimate rights and interests.

This successful settlement serves as a valuable precedent for resolving EPC contract disputes in the renewable energy sector. By achieving both legal and commercial results, the resolution not only addressed the dispute but also preserved the underlying business relationship between the parties. Against the backdrop of China’s rapidly expanding renewable energy industry, this case provides useful guidance for managing and resolving similar EPC contract disputes.

Attorney Profiles

Jun Yin
Senior Partner, Landing Law Offices
Practice Areas: Capital Markets & Asset Management, Corporate & M&A, Commercial Dispute Resolution
jun.yin@landinglawyer.com | +86 189 1858 2122

Siwei Peng
Partner, Landing Law Offices
Practice Areas: Asset Management, Capital Markets, Corporate Investment & M&A

siwei.peng@landinglawyer.com |+86 187 1772 1338