On The Object Limitation Of The Priority Right To Receive The Construction Price And Its Realization

Article 807 of the Civil Code provides for the right to priority payment of the construction project price,granting the contractor the right to receive priority payment of the construction project at a discount or request the court for the auction proceeds if the contractor defaults on the payment of the construction project and fails to perform after reminders.The implementation of the system of the right to priority payment for construction works depends on the determination of its object.The object of the priority right to be paid for construction works is "construction works",which is the labor results referred to in the construction contract,including construction works,decoration works and special construction works,but excluding the labor results referred to in the construction survey contract and construction design contract.The scope of the object covered by the priority right to receive construction works shall be less than the land use right attached to the construction works,and shall be limited to the part of the construction works actually constructed by the contractor,and the effect of the priority right to receive the price of construction works shall be extended to the subrogated property after the destruction and loss of the construction works.Article807 of the Civil Code stipulates the exceptions to the right of priority payment for construction works,namely the so-called "construction works which are not suitable for discount or auction",including construction works whose ownership does not belong to the contractor,illegal construction works which do not have exchange value due to violation of laws and regulations,construction works which do not meet the legal standards and public welfare construction projects.In order to protect the realization of the priority right to be paid for construction works and reduce the limitation of the object of the priority right to be paid for construction works,it should be clarified that the priority right to be paid for construction works has retroactive effect and the public notice system of right registration should be established.In terms of realization mode,the realization of the priority right to payment of construction project price should apply the realization procedure of security right,clarify its subrogation in rem,and include the proceeds of construction project into the realization scope of the priority right to payment.Meanwhile,the Civil Code should cooperate with other laws and regulations to clarify the specific meaning and scope of construction projects,and when several construction project price priority rights are competing on the same construction project,they should be satisfied in proportion to the claims.