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Illegal subcontracting refers to the act of a builder (general contractor or subcontractor) who, in violation of laws and regulations, subcontracts the entire project he has been contracted to to others for construction, fails to establish a project management team at the construction site or assign appropriate personnel there, and does not organize and manage the construction activities of that project. It can be divided into two forms: first, handing over the entire project to someone else for construction ； Second, after subcontracting the project, the employer of the subcontracted work failed to establish a project management organization at the construction site or assign appropriate personnel, and did not organize and manage the construction activities for that project. Illegal subcontracting refers to the acts of illegal subcontracting as stipulated in Article 78 of the Regulations on the Quality Management of Construction Projects and Article 14 of the Measures for the Administration of Subcontracting in Housing Construction and Municipal Infrastructure Projects. Article 78 of the Regulations on Quality Management of Construction Projects: “...The term ‘illegal subcontracting’ as used in these regulations refers to the following acts: (1) The general contractor subcontracts a construction project to a unit that does not possess the appropriate qualifications” ； (II) The contracting party assigns the portion of the construction work it has contracted to another party for completion, without such provision in the general contract for the construction project and without the approval of the project owner ； (III) The general contractor for the construction assigns the work of building the main structure of the construction project to other entities ； (IV) When a subcontractor subcontracts the construction project it has been contracted to. ” Article 14 of the Measures for the Management of Subcontracting in Construction Projects of Housing Buildings and Municipal Infrastructure stipulates: “Subcontracting of the contracted projects is prohibited.” Failing to fulfill the terms of the contract by assigning all the work contracted to others, or breaking down all the work contracted and assigning it separately to others under the guise of subcontracting, constitutes subcontracting. If, in violation of Article 11 of these regulations, the party assigning a subcontract assigns a project without establishing a project management organization at the construction site or deploying appropriate personnel to organize and manage the construction activities of that project, it shall be regarded as an act of sub-contracting out the work. ” According to Article 4 of the judicial interpretation by the Supreme People’s Court on construction project contracts: \"It is invalid for a contractor to illegally subcontract or divide a construction project, or for an unqualified actual constructor to sign a construction project contract with others under the name of a qualified construction enterprise.\" The people’s court may, in accordance with Article 134 of the General Principles of the Civil Law, confiscate the illegal gains obtained by the parties involved. ”