Supreme Court: Does the actual construction party have the right to request direct settlement with the employer

Entrusted litigation representative: Li Tingting, a lawyer from Guangdong Xiongbang Law Firm.

84 of the Supreme People’s Court.

Otherwise, if the actual construction personnel are allowed to settle directly with the employer, if the actual project cost exceeds the agreed upon amount, it will result in the actual construction personnel receiving a price greater than the contractor can obtain from the employer according to the agreement, essentially encouraging illegal subcontracting and layer by layer subcontracting.

Respondent (plaintiff in first instance and appellant in second instance): Zhang Liao, male, born on July 27, 1981, Han nationality, residing in Xinmin City, Liaoning Province.

Address: No.

The third party in the first instance: China Fourth Metallurgical Construction Co., Ltd.

Entrusted litigation representative: Acting Suning, a lawyer from Liaoning Tongfang Law Firm.

The Civil Judgment of the Supreme People’s Court of the People’s Republic of China (2021) No.

Address: No.

Third person in the first instance: Lu Chunye, male, born on May 18, 1975, Han nationality, residing in Kuandian Manchu Autonomous County, Liaoning Province
.

Bend Loop

Legal representative: Lin Tiesheng, Chairman of the company.

Address: Building 8, Jiefang South Road, Pingshan District, Benxi City, Liaoning Province.

Legal representative: Chen Zheyuan, General Manager of the company.

[Judgment gist] According to the provisions of Paragraph 2 of Article 43 of the judicial interpretation (I) of the Construction Contract [FSH [2020] No.

Entrusted litigation representative: Zhang Baibing, a lawyer from Liaoning Tongfang Law Firm.

436 Jianshe Road, Guixi City, Jiangxi Province.

Applicant for retrial (defendant in first instance and appellant in second instance): Liaoning Shihua (Group) Real Estate Development Co., Ltd.

Entrusted litigation representative: Liu Qingyi, an employee of the company.

First instance defendant: Benxi Steel (Group) Third Construction Engineering Co., Ltd.

Legal representative: Wang Jing, Chairman of the company.

25], although the actual constructor can claim rights directly from the employer, the employer only settles with subcontractors or illegal subcontractors, not directly with actual construction workers.

Entrusted litigation representative: Mou Zuotao, a lawyer from Liaoning Anxing Law Firm.

Entrusted litigation representative: Xu Jian, a lawyer from Liaoning Sanye Law Firm.

Litigation representative: Manager of Benxi Steel (Group) Third Construction Engineering Co., Ltd.

Legal representative: Zong Zhengfang, Chairman of the company.

Address: No.16A, Huanghai Road, Yuhong District, Shenyang City, Liaoning Province.

In the case where the settlement method for the construction project price is clearly agreed upon between the employer and the contractor, the employer shall only bear responsibility within the agreed scope.

The applicant for retrial (first instance defendant and second instance appellant) is Shenyang Guanlong Real Estate Development Co., Ltd.

23 Jiefang South Road, Pingshan District, Benxi City, Liaoning Province.