A Research On The Priority Of Construction Project Compensation

In recent years, the development of the construction industry in full swing, the achievements are obvious to everyone. However, during the "two sessions" in 2016 raised the need to fully implement the the program of "BT to VAT", and scope of the pilot will extend to the real estate, construction, and its short-term goal is obviously to accelerate destocking, which also reflects a status of the real estate industry. However, in real life there is the problem of arrears of construction price, and the Employer in a clearly advantageous position with the contractor in the construction contract, sometimes it appears a "schedule", resulting in a multi-party damage the interests of groups and forming conflicts of interest between the multi-party rights holders. Article 286 of the "Contract Law" establishes the construction of Priority of Compensation system, which played a significant role in solving the price arrears problem and protecting the legitimate interests of the contractor. But this provision too simple and general, practice is not practical, so the Supreme Court issued the relevant approval in 2002 to be added to this problem. Although we have made great efforts in theory and legislation, but in practice we still face many problems. However, our society is in constant development and progress, many new problems continue to emerge, and how to address these issues better and make construction of Priority of Compensation play a good role in practice, The author need further study and discussion (such as its scheduled period, the Scope of application,How to resolve conflict of rights) on these issues.The main content of this article:the first is a brief description of the case in the beginning of the article, while the focus of the dispute case involving a brief summary. Next, it is divided into five parts to analyze, case runs through the whole story of the article. First, the legislation on the construction of Priority of Compensation is not perfect; it belongs to the category of priority nature. Second, the construction of Priority of Compensation has three parts, the subject of rights, the object of which is the object, what could be the object of repayment range. Third, the way to exercise the priority right of construction project cost is to be repaid in two ways:First, the discount agreement, the second is the judicial process; how to calculate the starting point of the exercise period, it is the nature of the scheduled period, it does not apply to the suspension, termination and extend provisions; How the effectiveness of waiver and transfer of their rights. Fourth, it analysis the solution to construction Priority of Compensation and mortgage, consumer rights and the conflict between its own right. Fifth, two initiatives of improving the construction of Priority of Compensation are as follows:establish Trailer registration system and an arbitration clause will be not allowed in the contract disputes of construction project.