Study On Priority Of Construction Project Payment

It is very serious that the project payment being in arrears in the industry of construction in China. The influence of this problem is other than the construction industry itself. The Article 286 of Contract Law of the People's Republic of China endows priority of construction project payment. Then, the Supreme People's Court explains the specific circumstances of applying the "contract law" 286th on June 2002. However, due to the overgeneralization of these laws, it is highly controversial and hard to be carried out in judicial practice.This text analyses the disadvantages of Article 286 of Contract Law of the PRC, compares other countries' related legislation, than gives some advices according to China's practical situation, in order to perfect priority of construction project payment.The first part analyzes the situation, the behaving forms and the social results of the defaulting and finds the reasons as well,the necessity and urgency of solving this problem is also involved here.The second part makes comparison of the legislation in other countries and makes commentary about the discussion in the construction project payment's right nature. At present, there are three kinds of views at home, namely lien is said, the legal hypothec is said, priority is said. I hold the third kind of view.The third part analyzes the issues of the clash of interests and proposes the solutions. The fourth part explains how to perfect priority of construction project payment. Such as who will be been given this right and the deadline to ask for this right.