A Study On The Legal Problems Of Priority Of Compensation For Construction Project

To solve the problem of large construction project payment default, maintain the legitimate right for the constractors, protect the basic right to live for construction workers, and finally realizes the transaction security and the social harmony, both the article286of contract law of the People’s Republic of China (Hereinafter referred to as article286of contract law)and the Written reply to the priority system of compensation for the construction price which was released by the supreme court of the People’s Republic of China (Hereinafter referred as the Supreme Court approval)made some rules, then the priority system of compensation for the construction price is established. The system is an important tool for contractors and construction workers to protect their lawful rights.But the article286of contract law and the Supreme Court approval only made a macroscopic provision for the system, which means they didn’t make an in-depth analysis of the rights and obligations between subjects of legal relationship. This led to a great argument happened in practice, and the judicial system also feels confused about how to use the power. Since so many problems appeal in practice, this article is aim to make a discussion about the priority system of compensation for the construction price, put forward the proposal for contractors and construction workers to protect their lawful rights in practice and complete the priority system of compensation for the construction price in theory.This article altogether is divided into three chapters. The first chapter is try to make a legal analysis for the priority system of compensation for the construction price, and also make a focus analysis for it’s legislative background and it’s properties. By analyzing the theory about the real estate lien, the priority and the legal mortgage right in academia, and also make a comprehensive investigate about the foreign legislation cases, according to our country’s legislation system and social status at the same time, this paper argues that it is more suitable for our country to take the priority system of compensation for the construction price as the legal mortgage right.The second chapter mainly made a discussion about the legal risk and the rights conflict caused by the using of priority system of compensation for the construction price in practice. The priority system of compensation for the construction price not only adjust the relationship between the interests of the employer and the contractor, but also adjust the relationship between the other people, for example the interests of the bank and consumers. The adjustment changes the rights consequence between different parties, and the change lead to the dispute become more complex between them. In this chapter, the author select several contradiction dispute points for analysis, in order to find the difficulties met by priority system of compensation for the construction price in practice and the legal risk which the contractor may meet. Also the author wants to provide the contractor some legal risk prevention method which has the practical value.The third chapter mainly discusses the method how to perfect the priority system of compensation for the construction price in theory, for this purpose, the author made a suggestion that the advance notice registration system should be put in use of the priority system of compensation for the construction price. Only if we make it known by public especially the contractor and the other creditors through the way of public announcement, and make reasonable forecast, can we avoid some unnecessary potential economic risk, maintain transaction security and social stability, promote the healthy development of construction industry and safeguard the interests of the contractor in the end.