The Priority Of Compensation With Respect To That Theory Of Construction Project Cost

The preferential payment right on the cost and remuneration of construction project is a very popular topic in the field of the construction project, not just because of the financial interest of the every parties’ involving in the construction project is very important, but also to promote the social stability and harmony. This system was established in order to solve the outstanding problem of payments prevalent in construction project and to protect the interests of construction workers and material suppliers as vulnerable group.The main legal basis for the preferential payment right on the cost and remuneration of construction project are the October 1st, 1999 “Contract Law of the People’s Republic of China”(hereinafter referred to as the "Contract Law") Article 286; the June 27 th, 2002”Judicial interpretation of the preferential payment right on the cost and remuneration of construction project”(hereinafter referred to as the ”the Reply of the Supreme Court”); The January 1st,2005 “Judicial interpretation of the Supreme Court adhere to the Construction Contract Disputes applicable to a number of issues”(hereinafter referred to as the "The interpretation of the Construction Contract Disputes"). Based on the above legal basis, there has necessity for further discussion of the exercise way, the subject, the object, the exercise condition and the exercise period of this system, the priority nature in the theoretical circle is also hot issues.After comprehensive introduction of the preferential payment right on the cost and remuneration of construction project, it’s about to conduct an in-depth discussion of this system in several area. On the level of the subject, if the subcontractor and the actual construction person can exercise the right of the priority. On the level of the concurrence of rights, in addition to construction project cost of the Supreme People’s court approved "clearly defined" the priority right to be repaid over mortgages and creditor’s rights, priority shall not oppose to pay all or most of the price of housing buyer, also discusses there has the two priorities, the priority and the case of contract awarding units bankruptcy enterprise workers wages right priority problem; In the level of the period to exercise the rights, emphasis on the unfinished project and without a final acceptance of the project contractor priority enforcement problems; And to conduct a discussion in an angle with cases, “if the right of priority can give up”, and “the effect of this give up”.After the study on the above problems on the preferential payment right on the cost and remuneration of construction project to the situation of the system, I put forward some legislative suggestions. My professional knowledge and practical experience is limited and shallow, only published some private viewpoints.