Completion settlement is a method used by the construction entity and the contractor to settle the project payment. It refers to the final clearance and settlement of all payables and receivables arising from the project after its completion.

　　Completion settlement is a method used by the project owner and the construction contractor to settle the project payment. It refers to the final clearance and settlement of all payables and receivables arising from the project after its completion. According to regulations issued by the People's Bank of China in 1980, payments for construction and installation projects are made through advance payments at the end of each ten-day period or mid-month, with final settlement conducted at the end of each month. For projects spanning multiple years, an annual inventory and final settlement are carried out at year-end. However, the total amount of advance payments and project funds disbursed by the project owner to the construction company during the construction period—regardless of the duration of the project—generally shall not exceed 95% of the contract value. The remaining 5%—the final payment—is settled only after the project has been completed. Upon completion of the project, the construction company and the project owner shall promptly carry out the acceptance procedures. Within 20 days after completion acceptance, the construction company must prepare the final settlement statement and the “Project Payment Settlement Form” to complete the final settlement. Additionally, it is stipulated that for construction and installation projects with a construction period of six months or less, or with a contract value of 300,000 yuan or less, project payments may be advanced in installments on a monthly basis and settled in one lump sum upon completion. Starting from 1985, the Construction Bank has mandated, for regions and enterprises meeting certain conditions, the implementation of a new approach: settling the entire project payment in one lump sum upon completion.

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