Discussion On The Priority Of Constructi On Project Price

For a long time,construction project payment’s default has become a " tumour " affect the healthy development of the construction industry,threat to China’s economy and social stability.As the real estate capital turnover cycle is too long,many developers lack of capital,and the developer defaulted contractor construction project loan situation is getting worse.For this purpose of resolving the issue of falling behind with the project price,it is prescribed in article 286 of the Contract Law of the People’s Republic of China that contractor have Priority of Claim On The Price of Construction.The Supreme People ’ s Court had also gave specific judicial interpretation on the application of the Article 286 in 2002.The developer not according to the contract,the contractor may demand payment from the developer within a reasonable period to pay the price.The employer fails to pay,except in accordance with the nature of the construction project is not fit for liquidation or auction,the contractor may outside of an agreement with the developer will the project discount,can also apply to the people’s court to auction the project in.The construction project price shall be the liquidation or auction of the project seek preferred payments from the money.Expounds the significance and purpose of the establishment of construction project cost priority is the special creditor’s rights,so as to ensure the healthy development of construction project quality and safety and the construction industry.But because of the relevant provisions is relatively general,practice and theoretical circles on the boundary of the system some problems still exist many disputes.Especially in recent years,the real estate industry due to the state’s macroeconomic regulation and control of reason,there was a deep change.Therefore,in the real estate industry will face severe policy under control,and discuss the construction project priority system has a far-reaching theoretical and practical significance.This article attempts to discuss many aspects of Priority of Claim On The Price of Construction:the law character of Priority of Claim,the scope of the Priority,the conflicts between priority and related rights,the way of realization of Priority of Claim On The Price of Construction.What is the Priority of Claim On The Price of Construction in China?Is it a lien,legal mortgage or priority?But the lien and legal mortgage doctrine are not consistent with the spirit of the civil legal system and the construction of the priority of legislative purposes,so it is a priority.this right has a statutory,security,As well as the effectiveness of priority and so on.The discussion On priority includes three aspects:the right owner,the applicable conditions and the scope of compensation.Besides the general contractors of construction,the owner of rights should also include exploration contractors and building decoration contractors,but the project subcontractors should not be included;the applicable conditions of this right include:the contract is valid,the ownership of the project belongs to the contractor,the overdue payment,the negotiation between Employer and Contractor fail,the project can not be auctioned or discounted and the project is not paid by the consumer Most of the money of commercial housing,etc;the compensation must be based on the contents of the contract,at the same time,the interests and advances arising from the issue of repayment should be concerned.In reality,the priority is likely to conflict with the rights and interests of the purchasers and the banks and other financial institutions.In resolving the former kind of conflicts,the principle of handling must be flexible to deal with.When dealing with the latter kind of conflicts,banks should be included in the construction contract management of credit records,and participate in litigation actively.Currently,the Priority of Claim On The Price of Construction has the following difficulties:blind investment,The relevant legal system is imperfect,the inadequate government supervision and so on.The construction of the future priority system depends on three conditions:first,improve the relevant legal system.Not only need to modify and improve our "construction law",also need to modify and improve"Contract Law" by designing more sophisticated system;secondly,through the judicial implementation process to achieve project price priority;The labor bureau should set up an account for the price of construction project and reserve the account for the project in arrears.