Research On The Priority Right Of Compensation For Construction Projects

Construction sector is an important area in national economic activities,as well as an area which involves many different stakeholders.In this area of china,there occurs some questions such as complicated debts and credits,poor protection of interests of contractors etc.The position inequality between employer and contractor is an important reason why contractor's interests even enacted by law cannot be protected.One of the question is delay or even no payment by employer to contractor and more latter from contractor to its subcontractors.This is the background of the contractor's priority in claiming construction project which is enacted by the Contract Law and its explanation by the Supreme Court.This thesis mainly focuses on the flaws of this priority right and the ways to improve it.The following five chapters constitutes this paper.First chapter is the overview of the background,target and significance of construction project priority.Firstly,this chapter describes the background of subject selection which has practical significance.And the inadequateness of current study is also the reason why the author selected the subject.In descripting the target of this study,the author focuses on the nature,scope and instrument aspects of the subject right.In the sense description part,the author conducts her study from the aspects of interaction of Theory and Practice and comparative of the subject right.In the last part of this chapter,the author follows the sequences of question raising,question analysis and question answering and divide this thesis into 4 parts.In the second chapter,the author gives a general study of the nature and legislation status of construction project priority.The paper introduces some different classic legislations of construction project priority in different countries.Comparing with the legislations of construction project priority in different genealogy of law,there are two kinds of ways,priority(the privilege of taking first)and statutory mortgage,to provide the contractor special protection for the contraction project price.Considering the status and objective of construction project priority system in china,the nature of construction project priority should be priority right.Third chapter focuses on the present situation of construction project priority in China.The first part introduces the current status,causes and cases of project payment default and indicates that the imperfect legal system is an important reason of project payment default.The typical cases indicate that the nature of construction project priority and the application of relevant provisions are both unclear.Subject to the current legislation,the establishment essentials and effectiveness of construction project priority were analyzed subsequently,such as lawful construction contract,construction that should neither be auctioned nor discountable,completion of construction,applying for the court to auction at a discount and advance notice,and etc.Fourth chapter is about the exercises and corresponding restraints of the system of construction project priority,as well as interest balancing.The author starts from the legal nature of the six months to exercise the right,then discuss the ways or methods to exercise the right.Then the exercise of the right,time and other constraints are analyzed and expounded.On the topic whether the subjects can abandon the right,the writer holds a negative attitude.Considering different stakeholders,the last part analysis the interest balance of contractor,homebuyers and financial institutions on construction project priority.The fifth part of the thesis is a summary of this study which can be divided into 2 parts.Firstly,the author gives a look back generally to the thesis and put forward several suggestions to improve the system of construction project priority.Then,the author also mentions some aspects of the construction project priority which need further study.