If it exceeds the limit, the actual constructor cannot claim against the Employer for the excess..
.
The actual constructor generally needs to meet three requirements to claim rights from the employer: (1) The actual constructor enjoys creditor’s rights against subcontractors or illegal subcontractors.
For effective legal documents The people’s court shall not support a confirmed matured creditor’s right that is denied by the other person.
However, if the quality of the construction project completed by the contractor and the actual constructor is substandard, resulting in the contractor having no right to request payment of the project price, or if the employer has fully paid the project price owed to the contractor, the actual constructor cannot claim rights from the employer.
After identifying the amount of construction project price owed by the employer to the subcontractor or illegal subcontractor, “The contract letting party shall be held responsible for the actual construction party within the scope of the unpaid construction project price.” If the people’s court enforces the due creditor’s rights of the actual construction party as the person subjected to execution against the employer, it actually enforces the construction project price creditor’s rights enjoyed by the subcontractor or illegal subcontractor against the employer under the construction project construction contract.
Source: The Supreme Court, this article is for exchange and learning only.
“Article 43, paragraph 2, of the Interpretation of the Supreme People’s Court on the Application of Legal Issues in the Trial of Disputes over Construction Contracts for Construction Projects (I) stipulates:” If the actual constructor claims rights with the employer as the defendant, the people’s court shall add the subcontractor or illegal subcontractor as the third party in the case.
If there is any infringement, please contact and delete it.
Source: The Supreme Court of Justice, Civil Trial Guidance and Reference, Volume 90, is published by the People’s Court.
The invalidity of subcontracts and illegal subcontracts does not mean that the construction contract signed between the Employer and the Contractor is invalid.
If the other person objects to the matured creditor’s rights, and the applicant for enforcement requests partial enforcement of the objection, the people’s court shall not support it.
If the People’s Court enforces the due creditor’s rights of the actual constructor against the Employer, does the subcontractor or illegal subcontractor have the right to raise objections? Answer: Article 499 of the Interpretation of the Supreme People’s Court on the Application of the Civil Procedure Law of the People’s Republic of China stipulates: “The people’s court may make a ruling to freeze the creditor’s rights of the person subjected to enforcement against the matured creditor’s rights of another person, and notify the other person to perform them to the applicant for enforcement.
Even if the construction contract signed between the employer and the contractor is invalid, if the construction project completed by the contractor and the actual constructor passes the completion acceptance, the contractor has the right to request the employer to pay the project price in accordance with the provisions of Article 793 of the Civil Code.
The first is the construction contract relationship between the contractor and the employer; The second is the subcontracting and illegal subcontracting relationship between the contractor as a subcontractor or illegal subcontractor and the contractor in the subcontracting or illegal subcontracting.
(3) The amount of creditor’s rights enjoyed by the actual constructor against the subcontractor or illegal subcontractor shall not exceed the construction project price owed by the starting contractor to the subcontractor or illegal subcontractor.
(2) The employer owes the construction project price to the subcontractor or illegal subcontractor.
The subcontractor or illegal subcontractor belongs to the “other person” specified in Article 499 of the Interpretation of the Supreme People’s Court on the Application of the Civil Procedure Law of the People’s Republic of China, and has the right to raise objections to the matured creditor’s rights that are being enforced.
Attachment: Relevant viewpoints of the Supreme Court of Justice and the First Civil Court Source: “Judicial Interpretation of the Supreme People’s Court on Construction Contracts for New Construction Projects (I): Understanding and Application”, published by the People’s Court Press, in the case of subcontracting and illegal subcontracting, there are three parties and two legal relationships.
The claim may be a claim for project price, or a claim for compensation for losses caused by the invalidity of a subcontract or illegal subcontract.
If an interested party objects to the matured creditor’s rights, the people’s court shall handle them in accordance with the provisions of Article 234 of the Civil Procedure Law.
