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Public engineering contract, as compared to other types of contracts, had its uniqueness in the very beginning, therefore, its uniqueness was highlighted as compared to sales or real estate transaction contract, and all these phenomena displayed in the contract include high value, long period of contract fulfillment, high risk and uncertain giving contents; meanwhile, during the contract fulfillment process, contract fulfillment failure might occur due to lots of uncertain factors from the customer or subcontractor. When any one party cannot fulfill the contract, the issue of attribution of “contract violation responsibility” might be generated. Public engineering itself had it high complication, high risk and high profession, therefore, during the contract fulfilment process, it might generate all kinds of subjective and objective factors to lead to failure of continuity of the engineering. Usually, in the overall project, there might be issues such as land usage or acquisition, engineering planning, engineering design, engineering technology, resident’s protest and hindrance and government’s policy change, therefore, when such issues occurred, what was important were whether “contract termination” or “release the subcontracting contract” should be adopted and at what time point? And what was the difference between both of them? When the fulfilment of these two rights occurred, the issues of responsibility of “agreed” or even “non-agreed” “compensation for damage” between the customer and subcontractor were then generated, meanwhile, the fulfilment of these two rights usually will have different legal theory and effect, therefore, how to request for compensation for damage was usually unknown to the customer and subcontractor? Consequently, legal action was usually needed to solve the dispute, and what came after was usually the request issues of related “compensation for damage”. When compensation for damage occurred, it will then involve the claim and implementation of right and responsibility between both parties of the contract during the contract fulfilment process, When the behavior of the right of “compensation for damage” occurred, basically it will generate the definition of “damage for compensation”, the claim of “compensation for damage” and the scope of “compensation for damage”, therefore, this paper will focus on the study of “how to conduct compensation for damage”.
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