Exploring Modular Construction Applications Such as 'Demolish-and-Rebuild on the Original Site' and 'Old Housing Renovation' — The 'Implementation Opinions on Promoting High-Quality Development of Prefabricated Construction in Fuzhou' Open for Public Comments

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Introduction

To implement the Guiding Opinions of the General Office of the State Council on Vigorously Developing Prefabricated Buildings (Guo Ban Fa [2016] No. 71) and the Implementation Opinions of the General Office of the Fujian Provincial Government on Vigorously Developing Prefabricated Buildings (Min Zheng Ban [2017] No. 59), the Fuzhou Municipal People's Government formulated and issued the Implementation Opinions of the Fuzhou Municipal People's Government on Accelerating the Development of Prefabricated Buildings (Trial) (Rong Zheng Zong [2017] No. 1164) in May 2017. After years of implementation, this document no longer suits the current practical work on prefabricated buildings. In order to continue promoting the development of prefabricated buildings in Fuzhou, the full text has now been revised on the principle of abolishing the old and establishing the new, and the Fuzhou Municipal Housing and Urban-Rural Development Bureau has published a notice soliciting comments and suggestions from the public between May 27 and June 30, 2026.

Implementation Opinions on Promoting High-Quality Development of Prefabricated Buildings in Fuzhou

[Draft for Comments]

To the people's governments of all counties (cities) and districts, all commissions, offices and bureaus (companies) directly under the municipal government, all municipal institutions of higher learning, and the Administrative Committee of the Fuzhou Area of the Free Trade Zone:

In order to thoroughly implement the Guiding Opinions of the General Office of the State Council on Vigorously Developing Prefabricated Buildings (Guo Ban Fa [2016] No. 71) and the Implementation Opinions of the General Office of the Fujian Provincial Government on Vigorously Developing Prefabricated Buildings (Min Zheng Ban [2017] No. 59), to further advance the industrialized, digital and intelligent upgrading of our city's construction sector, to accelerate the transformation of construction methods, to promote supply-side reform and low-carbon green development in our city's construction industry, and to support the high-standard, high-quality development of our city's construction industry, the following implementation opinions are formulated in light of the actual conditions of our city.

I. Work Objectives

Adhere to market leadership and government promotion. Drawing on the strengths of our city's construction and building materials industries and other resource advantages, develop prefabricated buildings such as precast concrete structures and steel structures in accordance with local conditions, and continuously raise the implementation standards for prefabricated buildings as the work progresses.

By the end of 2030, prefabricated buildings shall account for more than 45% of the above-ground floor area of newly built buildings citywide.

II. Scope of Implementation and Standards

1. For affordable housing, education, healthcare and comprehensive office building projects funded by municipal state-owned investment (including projects in which state-owned capital holds a controlling stake), 100% of the above-ground floor area shall be built using prefabricated construction, excluding structures and supporting ancillary facilities built separately within the project (guard houses, garbage rooms, power distribution rooms, etc.).

2. From 2026 onward, all other newly built building projects citywide with a total above-ground floor area of 10,000 square meters or more, apart from those listed above, shall be implemented in accordance with the following scope and standards:

(1) Optimize and adjust the categories of projects subject to prefabricated construction. For commercial residential land newly granted through public transfer in the four urban districts with an above-ground floor area of less than 100,000 square meters, and for commercial and business office land with an above-ground floor area of more than 100,000 square meters, the adoption of prefabricated construction may be decided at the developer's own discretion.

(2) For the remaining newly built buildings in the six urban districts of Fuzhou (including Binhai New City) for which land contracts are newly signed (or land allocation decisions are newly obtained), more than 50% of the above-ground floor area shall be built using prefabricated construction; for newly built building projects within the urban areas of other counties (cities) for which land contracts are newly signed (or land allocation decisions are newly obtained), more than 30% of the above-ground floor area shall be built using prefabricated construction. Prefabricated buildings shall comply with the relevant national and provincial recognition standards.

3. Newly built public buildings such as gymnasiums and shopping malls shall give priority to steel structure buildings.

4. Projects such as fully fitted commercial housing, affordable rental housing, hospitals and schools are encouraged to adopt prefabricated interior fit-out. Explore the application of modular buildings in urban renewal scenarios such as “demolition and relocation back to the original site” and “renovation of old buildings”, and pilot the use of prefabricated construction for rural housing.

III. Implementation of Key Tasks

1. Implementation of management policies at the land supply stage.

Where land use rights are granted through public transfer, the natural resources and planning authorities shall, against the work objectives, tasks, scope and standards for implementing prefabricated buildings, incorporate prefabricated building requirements into the auction announcement for the transfer of construction land use rights as a condition of the grant, and require bidders to undertake that, upon winning the land, they will sign the Prefabricated Building Supervision Agreement with the housing and urban-rural development authorities. In accordance with the current policies of Fujian Province and Fuzhou City, where prefabricated construction is required, the Municipal Housing and Urban-Rural Development Bureau shall sign the Prefabricated Building Supervision Agreement with the successful bidder of the parcel at the stage of signing the land transfer contract. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau, the Municipal Bureau of Natural Resources and Planning, and the Fuzhou Public Resources Trading Service Center]

For allocated land or land granted by agreement, the construction entity shall sign the Prefabricated Building Supervision Agreement with the housing and urban-rural development authorities within one month of obtaining the land allocation decision. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau]

Where prefabricated construction should have been implemented but was not, or where the implemented area fails to meet the relevant requirements for prefabricated construction: for land granted through public transfer, the construction entity shall pay liquidated damages calculated by multiplying the area that should have been built using prefabricated construction but was not by RMB 300 per square meter, and remit the amount to the Fuzhou municipal treasury; for allocated land or land granted by agreement, the construction authorities shall register the case, record it in the enterprise's credit file and enter it into the municipal public credit information platform. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau]

2. Ensure proper management of the approval process.

For newly started affordable housing, education, healthcare and comprehensive office building projects funded by state-owned investment (including projects in which state-owned capital holds a controlling or leading position), the development and reform authorities shall review the project's arrangements for implementing prefabricated buildings at the project initiation stage, and shall specify the prefabricated building implementation requirements in the approval reply for project initiation (project proposal and feasibility study). [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Development and Reform Commission]

At the stages of design management and issuance of construction permits, the construction administrative authorities shall urge construction drawing review agencies to review prefabricated buildings strictly in accordance with the design requirements, and shall specify the concrete requirements for implementing prefabricated buildings in the construction permits. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau]

3. Strictly oversee project implementation. Within three months after completion of the construction drawing review, the construction entity shall apply to the housing and urban-rural development authorities of the project location for a preliminary evaluation of the prefabricated building at the design stage. The construction authorities shall strengthen supervision of the construction process and urge all participating parties to fulfill their safety and quality responsibilities for prefabricated construction, so as to ensure that prefabricated projects are properly implemented. Within 20 working days after project completion (preliminary acceptance), the construction entity shall apply to the construction authorities of the project location for evaluation and recognition of the prefabricated building at the construction stage. The Municipal Housing and Urban-Rural Development Bureau shall ensure that 100% of the above-ground floor area of affordable housing projects is built using prefabricated construction; the Municipal Education Bureau shall ensure the same for education projects; and the Municipal Health Commission shall ensure the same for healthcare projects. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau, the Municipal Education Bureau and the Municipal Health Commission]

IV. Policy Support

1. Floor area counted toward the FAR. For commercial housing projects that voluntarily adopt prefabricated construction, the floor area of precast exterior walls, or of the precast portion of composite exterior walls, may be excluded from the floor area ratio (FAR) calculation, provided that it does not exceed 3% of the original FAR-counted floor area of the building. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau, the Municipal Bureau of Natural Resources and Planning, and the Municipal Real Estate Registration and Trading Center]

2. Incentives for industrialization bases. Where products manufactured locally by building industrialization enterprises are listed in the Catalogue of New Wall Materials Eligible for the Preferential Policy of Immediate Refund of VAT upon Collection, those that meet the conditions may enjoy the preferential policy of immediate refund of VAT upon collection in accordance with regulations. Manufacturers of components and parts shall enjoy the relevant support policies of our city for industrial enterprises. Prefabricated building component and part manufacturers that meet the criteria for high-technology enterprises may, upon recognition, enjoy the relevant preferential policies in accordance with the law. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau, the Municipal Bureau of Industry and Information Technology, the Municipal Finance Bureau and the Municipal Tax Bureau]

3. Preferential treatment in awards and commendations. Projects built using prefabricated methods shall be given priority recommendation for the various evaluations in the engineering and construction field, such as the Luban Prize, the Minjiang Cup and the Rongcheng Cup. [Responsible party: the Municipal Housing and Urban-Rural Development Bureau]

4. Strengthen financial services. For commercial housing built using prefabricated construction, financial institutions are encouraged to give priority to allocating credit resources for the project's development loans and consumer loans, to lower loan interest rates, to simplify approval procedures and to increase support. Where employees apply for housing provident fund loans to purchase commercial housing built using prefabricated construction and the other loan conditions are met, their housing provident fund loan quota shall be increased by 20% over the eligible loan amount, provided that the increased amount does not exceed the maximum housing provident fund loan limit. Where a building constructed using prefabricated methods has been built to the elevation of ±0.000 and its construction schedule and completion and delivery dates have been determined, an application for a pre-sale permit may be submitted in advance. For prefabricated buildings financed and invested by the government, the quality retention money paid by the construction project shall be calculated by taking the total contract price minus the total price of the precast components as the base and applying a rate of 2%. [Responsible parties: the Fuzhou Housing Provident Fund Center, the Municipal Local Financial Administration, the Municipal Housing and Urban-Rural Development Bureau, and the Municipal Bureau of Natural Resources and Planning]

V. Work Safeguard Measures

1. Strengthen inter-departmental coordination. The Municipal Housing and Urban-Rural Development Bureau shall coordinate the citywide promotion and application of prefabricated buildings, and shall guide and urge the construction administrative authorities of all counties (cities) and districts to carry out prefabricated building work within their jurisdictions. The Municipal Development and Reform Commission shall specify the prefabricated building implementation requirements in its approval replies for project initiation. District governments shall fulfill their territorial management responsibilities, properly control and supervise government-invested projects, coordinate the development of industrial bases within their jurisdictions, advance project implementation, and ensure that all tasks are carried out in full. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau and the Municipal Development and Reform Commission]

2. Transportation support. Within the scope of their functions, the Municipal Transport Bureau, the Municipal Traffic Police Detachment and other departments shall provide the necessary support and assistance, in terms of logistics and traffic flow, to vehicles transporting oversized and over-wide components and parts such as precast concrete and steel members. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Transport Bureau, the Municipal Traffic Police Detachment, etc.]

3. Intensify publicity and promotion. Strengthen policy publicity for prefabricated buildings, use media such as the internet to build information exchange platforms, report the latest industry developments in a timely manner, foster a favorable market atmosphere, raise public awareness of building industrialization, guide consumers to purchase prefabricated buildings, and advocate low-carbon and environmentally friendly consumption patterns. [Responsible parties: the people's governments of all counties (cities) and districts; the Municipal Housing and Urban-Rural Development Bureau]

This document shall take effect from the date of issuance and remain valid for five years. The former Rong Zheng Zong [2017] No. 1164 document is repealed at the same time. Where provisions of other municipal-level or lower-level documents are inconsistent with this document, this document shall prevail.

Source: Green Prefabricated Building Industry Branch&Luzhuhui

END

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      Zhuwei Architectural Technology is a new-type technical services company specializing in integrated design optimization, BIM consulting and prefabricated construction design consulting. Our team brings together senior engineers from leading design institutes, former executives of real-estate companies, BIM engineers and prefabrication engineers, delivering integrated design optimization, refined drawing review, BIM consulting with MEP detailing, and prefabricated design services.

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