Proportion of safety investment in construction projects

I’ve found some information that I hope will be useful to you: Interim Measures for the Financial Management of Safety Production Expenses in Enterprises in High-Risk Industries. Chapter 1: General Provisions. Article 1: These measures are formulated in accordance with relevant laws and decisions issued by the State Council, in order to establish a long-term mechanism for investment in safety production in enterprises in high-risk industries, to strengthen the financial management of such expenses, and to protect the interests of enterprises, employees, as well as the public interest. 　　Article 2 These Provisions apply to enterprises and other economic organizations (hereinafter referred to as enterprises) that engage in mining, construction, production of hazardous materials, and road transportation within the territory of the People’s Republic of China. 　　**Where there are separate provisions for coal mining enterprises and fireworks manufacturing enterprises, such provisions shall apply. This regulation does not apply to less hazardous non-coal mines such as geothermal and hot spring sites, mineral water sources, salt mines, river sand mining, gold dredging operations, and small-scale brick and tile clay mines. 　　Article 3 Enterprises shall establish a management system for safety production expenses. 　　Safety production expenses (hereinafter referred to as safety funds) refer to the funds that enterprises set aside in accordance with specified standards and include in their costs, intended specifically for improving and enhancing the safety conditions within the enterprise. 　　Article 4: Safety expenses shall be financially managed in accordance with the principles of \"collection by enterprises, **supervision, ensuring necessity, and standardized use\". 　　Article 5: The terms used in these regulations mean the following: Mine exploitation refers to the exploration and production of petroleum and natural gas, metal ores, non-metallic ores, and other mineral resources, as well as the closure of mines and related activities. 　　Construction refers to the construction, expansion, renovation of civil engineering projects, building projects, shaft and tunnel works, pipeline and equipment installation, as well as decoration projects, as well as mine construction. 　　Hazardous goods refer to items listed in the **Standard ‘List of Hazardous Goods’ (GB12268)** and the **‘Catalogue of Highly Toxic Chemicals’** determined and published by relevant authorities, including hazardous goods used in military production as well as civilian **goods**, etc. 　　Road transportation refers to the transport of passengers and goods using motor vehicles as means of transport. 　　Chapter 2: Standards for Allocating Safety Expenses Article 6: Safety expenses for mining enterprises shall be allocated on a monthly basis, based on the volume of raw minerals extracted. The standards for allocating safety expenses per unit of output for various types of mineral ores are as follows: (1) For petroleum, 17 yuan per ton of crude oil ； 　　(II) Natural gas: 5 yuan per thousand cubic meters of raw gas ； 　　(III) Metal mines: 4 yuan per ton for open-pit mines, and 8 yuan per ton for underground mines ； 　　(IV) Nuclear industry mines: 22 yuan per ton ； 　　(5) Non-metallic mines: 1 yuan per ton (cubic meter) for open-pit mines, and 2 yuan per ton (cubic meter) for underground mines ； 　　(VI) Small open-pit quarries, namely those with an annual extraction volume of less than 500,000 tons and a maximum mining depth of no more than 50 meters, whose products are used in construction and road paving – such quarries are charged at 0.5 yuan per ton. 　　Crude mineral production does not include tailings and low-grade ores used for comprehensive utilization in metal and non-metal mine tailing ponds and waste dumps. 　　Article 7: For coal mines, as well as metal and non-metal mines that occur together with coal, mines operated underwater, mines at risk of spontaneous combustion, mines operated beneath buildings or structures that need protection or railways, and other mines with special requirements regarding safe production, the extraction standards may be increased on the basis specified in Article 6 of these regulations, upon approval by the provincial work safety supervision agency in conjunction with the finance department (bureau). However, the increased extraction standards shall not exceed 50% of the original standards. Article 8: Construction enterprises shall use the cost of construction and installation projects as the basis for determining the extraction amounts. The standards for allocating safety costs for various types of projects are as follows: (1) For building construction projects and mining projects, the rate is 2.0% ； 　　(II) For power engineering, water resources and hydropower engineering, and railway engineering, it is 1.5% ； 　　(III) For municipal public works, smelting projects, mechanical and electrical installation projects, chemical and petroleum engineering projects, port and waterway projects, highway projects, and communication projects, the rate is 1.0%. The safety funds allocated by construction companies are included in the project cost, and these amounts cannot be reduced during bidding. **If there are separate provisions regarding the estimated cost of capital construction investment, those provisions shall apply. 　　The general contractor shall pay the safety expenses to the subcontractors in proportion, without the subcontractors making additional deductions. 　　Article 9: Hazardous goods manufacturing enterprises shall calculate the provision based on their actual sales revenue for the current year, using an excess progressive method and in accordance with the following standards on a monthly basis: (1) If the actual annual sales revenue is 10 million yuan or less, a provision of 4% shall be made ； 　　(II) For the portion of the actual annual sales revenue ranging from 10 million yuan to 100 million yuan (inclusive), a levy of 2% shall be applied ； 　　(III) For the portion of the actual annual sales revenue ranging from 100 million yuan to 1,000 million yuan (inclusive), a levy of 0.5% shall be applied ； 　　(IV) For the portion of the actual annual sales revenue that exceeds 1,000 million yuan, a levy of 0.2% shall be applied. 　　Article 10 Road transportation enterprises shall calculate the provision based on their operating revenue, in accordance with the following standards on a monthly basis: (1) For passenger transport services, the provision is calculated at 0.5% ； 　　(II) The ordinary freight transportation business is subject to a levy of 1% ； 　　(III) A fee of 1.5% is charged for special freight services such as those involving hazardous goods. 　　Article 11: When the balance in the special account for safety expenses of small and medium-sized enterprises and large enterprises as of the end of the previous year reaches 5% and 2% of the enterprise’s sales revenue for that previous year, respectively, with the approval of the local work safety supervision and management department in conjunction with the finance department, the enterprise may defer or reduce the amount of safety expenses to be set aside for that year. 　　The criteria for classifying enterprise sizes are in accordance with the \"Notice on Issuing Interim Provisions for the Standards of Small and Medium-Sized Enterprises\" issued by the former **Economic and Trade Commission, the former **Planning Commission, the Ministry of Finance, and the **Statistics Bureau (Guo Jing Jiao Zhong Xiao Qi [2003] No. 143), as well as the \"Interim Methods for Classifying Large, Medium, and Small Enterprises for Statistical Purposes\" issued by the **Statistics Bureau (Guo Tong Zi [2003] No. 17). 　　Article 12: Prior to the issuance of these regulations, if provincial-level authorities had already established rules regarding the allocation and use of funds for enterprise safety production, and those standards were lower than those specified in these regulations, they shall be adjusted in accordance with these regulations ； If it is higher than the standards specified in these measures, the original standards shall apply. 　　Chapter 3: Use and Management of Safety Production Expenses Article 13: Safety expenses shall be used within the scope specified below. 　　(1) Expenditures for improving, upgrading, and maintaining safety protection equipment and facilities, including: 1. Safety equipment and facilities in mining enterprises refer to systems for comprehensive dust control, geological monitoring, fire prevention and control, water management, detection of hazardous gases, ventilation systems, equipment for supporting structures and preventing slope failures, mechanical and electrical equipment, power supply and distribution systems, transportation (elevator) systems, as well as tailing ponds (dams), etc ； 　　2. Safety equipment and facilities in hazardous materials manufacturing enterprises refer to devices and systems for monitoring, surveillance, ventilation, sun protection, temperature control, fire prevention, fire extinguishing, explosion prevention, pressure relief, poison prevention, disinfection, neutralization, moisture prevention, lightning protection, static electricity prevention, corrosion prevention, leakage prevention, as well as protective barriers or isolated operation areas in workplaces such as workshops and warehouses ； 　　3. Safety equipment and facilities for road transportation enterprises refer to systems for detecting and maintaining the safety condition of transport vehicles, as well as additional safety devices attached to these vehicles. 　　(II) Expenditures on necessary emergency rescue equipment and devices, as well as safety protection items for on-site workers. 　　(III) Expenditure on safety production inspections and evaluations. 　　(IV) Expenditures for the assessment, rectification, and monitoring of major hazard sources and potential major accidents. 　　(5) Expenditures on safety skills training and emergency rescue drills. 　　(VI) Other expenses directly related to work safety. 　　Article 14 Within the scope of use specified in these measures, enterprises shall prioritize using safety funds to meet the rectification requirements imposed by the work safety supervision and management authorities, or to cover the expenses necessary to meet work safety standards. 　　Article 15: Enterprises shall keep safety funds in a separate account for accounting purposes and allocate them for use within the prescribed scope. The annual surplus is carried forward to the following year; if the safety expenses allocated in the current year are insufficient, the excess amount is recorded under normal cost and expense items. 　　After going through its internal decision-making procedures, the group company can centrally manage and allocate in a coordinated manner the safety funds set aside by its subsidiaries. 　　Article 16 Enterprises shall establish and improve internal systems for managing safety expenses, clarify the procedures, responsibilities, and authorities regarding the use and management of such expenses, and submit to the supervision of the work safety supervision and management departments as well as the financial authorities. 　　Article 17 Assets formed from safety funds utilized by enterprises shall be included in the relevant assets for management. 　　Article 18: Enterprises shall arrange group personal accident insurance or individual accident insurance for employees who are engaged in high-risk tasks such as work at heights, under high pressure, with flammable or explosive materials, in environments involving highly toxic substances, in radioactive areas, for high-speed transportation, in outdoor conditions, or in mines. The required insurance cost is directly included in the costs, and is not accounted for under safety expenses. 　　The costs incurred by enterprises for occupational disease prevention and control, work-related injury insurance, and medical insurance for their employees are not included in the safety expenses. 　　Article 19: Mining enterprises that have already allocated funds for maintaining simple reproduction shall continue to do so, but such funds may no longer be used for purposes related to safe production. 　　Article 20: When a hazardous materials manufacturing enterprise changes its production scope, suspends production, closes down, or dissolves, the remaining amount of safety funds shall be used to cover the expenses associated with dealing with the equipment used in hazardous materials production or storage, the inventory products, and the raw materials required prior to such change in production scope, suspension of production, closure, or dissolution. 　　Article 21: Where an enterprise undergoes changes in its equity structure or organizational form due to property rights transfers, corporate restructuring, etc., the surplus safety funds shall continue to be managed and used in accordance with these provisions. 　　When an enterprise adjusts its business operations, ceases to operate, or undergoes liquidation in accordance with the law, the remaining safety funds must be transferred to the current period’s earnings or the liquidation proceeds. 　　Chapter 4 Financial Supervision Article 22 Enterprises shall allocate safety funds in a timely and sufficient manner, and use them in accordance with relevant regulations. In the annual financial accounting report, enterprises shall disclose the specific details regarding the allocation and use of safety expenses. 　　Article 23 The financial authorities and the work safety supervision and management departments shall supervise and inspect the extraction, management, and use of enterprise safety funds. 　　Article 24: If an enterprise fails to allocate and utilize safety funds in accordance with these provisions, the work safety supervision and management department shall, in conjunction with the finance department, order it to make corrections within a specified time limit and issue a warning. If the violation is not corrected within the prescribed time, the work safety supervision and management department will take action in accordance with relevant regulations. 　　Chapter 5 Supplementary Provisions Article 25 The accounting treatment of enterprise safety expenses shall comply with the provisions of the **uniform accounting system. 　　Article 26 The financial departments and work safety supervision and management departments of various provinces, autonomous regions, and municipalities directly under the Central Government may formulate specific implementation measures in light of the actual conditions of their respective regions, and submit them to the Ministry of Finance and the **Work Safety Supervision and Management Administration for the record. 　　Article 27 These measures shall be interpreted by the Ministry of Finance and the **General Administration of Work Safety Supervision and Management. 　　Article 28 These Provisions shall come into force as of January 1, 2007.

Reply to 2# diwu0205: I would like to ask about the safety investments during the enterprise construction phase

Reply to 3# wps198682: That’s what it means. Generally, the investment in safety measures is around 1% of the construction cost

Reply to 4# diwu0205: Are there any regulations regarding 3q? Rules and such

Interim Provisions on the Financial Management of Safety Production Expenses for Enterprises in High-Risk Industries, Article 8: Construction enterprises shall use the cost of construction and installation projects as the basis for calculating such expenses. The standards for allocating safety funds for various types of projects are as follows: (III) For municipal public works, smelting projects, mechanical and electrical installation projects, chemical and petroleum engineering projects, port and waterway projects, highway projects, and communication projects, the rate is 1.0%. The safety funds allocated by construction companies are included in the project cost, and these amounts cannot be reduced during bidding.