Research On The Preferential Payment Right On The Cost And Remuneration Of Construction Project

Since the Art. 286 of The Contract Law of the People's Republic of China had established the system of the preferential payment right on the cost and remuneration of construction project, the Supreme People's Court supplemented and consummated this system by the form of "Reply". However, this legal system is too high-principled. As a result, there are still many arguments concerning this legal system either in theory or in legal practice. And it brings some confusions to the legal practice. It can be forecast that disputes concerning the cost and remuneration of construction project will exist a long time in the future. It is to be regretted that the solution of such disputes still depends mainly on the administrative intervention of the government until this moment. This legal system does not fully exert its effect in legal practice. This thesis commences with case studies. It analyzes the legislative aim and the legal principle basis of the preferential payment right on the cost and remuneration of construction project based on the status in quo in construction sector and the comparison with the legislation of priority right of some foreign countries and districts. According to the discussion of lien, mortgage and priority, it determines the character of the preferential payment right on the cost and remuneration of construction project as one kind of priority right. It researches the characteristics and effectiveness of such priority right. And it gives the author's viewpoint of the potential conflicts between such priority right and mortgage, consumers' right and other relative rights. Then the author proposes the ways to solve these conflicts. At the end of the thesis, the author expresses his viewpoint concerning the subject of such priority right, the balance of rights, the registration and procedures in order to gain such priority right. The author expects that such analyses and discussion above will give help to the amendment of laws or the enactment of new judicial explanations concerning such priority right.