Research On Safeguard Of Contract Payment In The Construction Area

With the developing of market economy of China and rapid urbanization process, the construction industry has become an important part of our national economy, it plays an important role in providing job opportunities, tax contribution and other areas. In recent years, with the spreading of news such as "the peasants strive for the labor reward ", people have come to realize seriously the issue of delaying of contract payment which has been existed for a long time in the construction industry, arousing greater concerning of government, as well as the judiciary and academia. Not only the contractor and entire construction markets affected directly by the problem of delaying payment, other issues such as the project quality defects and labor wages delaying are brought out consequently, even the whole social stability. Administrative measures did not play effectively against payment delay, then some scholars propose to create some safeguards system of contract payment by law. In this point, this paper research on existing legal provisions and put forward constructive suggestions by literature research, empirical analysis.Except the conclusion, this paper is divided into four part structively:The first part is a general review of this article. it mainly introduces the background and significance of the research, the status of the study abroad and in China on this issue, as well as the focusing points and some problems not entirely talked hereby.The second part analyzes the features of differences between contract payment delaying and other arrears and harm of this problem. First, this section briefly describes the concept and scope of contract payment delaying; secondly, describing the details of contract payment delaying from the point of characteristics construction project such as extensive and long time construction payment default, the complex debt chain, seriously payment arrears problems specially on government investment projects. Finally, analyzing the harm of contract payment delay from the impact on the quality of the project, undermine the market economic order, undermine construction enterprises market competitiveness, affect social stability.The third part is causes analyzes of the problem of contract payment delay. Imperfect legal system is the primary cause of this problem. The writer suggests that China’s current regulatorylegal system construction funds, the regulation of the flow of funds for construction, engineering security system, "Priority of the Contractor’s payment system" and the credit system requires to improve the credit system. In addition, it is also caused by the lax supervision from government project regulation, imbalance between supply and demand of the construction market, weak legal awareness of the two litigants.The fourth part gives some suggestions on improving China’s legal system construction guarantee payment through safeguarding the rights of the contractor’s project funds related to the problems as the starting point, thinking of some personal opinions, and researching on protecting the rights of the contractor in the construction contract is the most important way. This paper argues that in order to avoid a large number contract payment delay, it should be corresponding legal rules and norms of behavior of the owner before the construction, during construction and after completion of the project and these systems can be a good convergence, supplement each other, forming legal system of protecting contractor’s frights. The construction legal system should include construction fund financial supervision legal system, project guarantee system,construction of priority for repayment system, credit system and the project supervision system of government.