The highest case law: the construction unit and the developer compensate the outstanding project funds with the discount of the house involved in the case, which is in line with the realization mode of the priority of the project price

Case source: Sichuan Construction Mechanization Engineering Co., Ltd

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and Chengdu Zijie Investment Management Co., Ltd

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applied for the lawsuit of executor’s objection to execution

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Civil judgment of the Supreme People’s Court (2020) Supreme People’s court No

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352 judgment gist 1

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The Contractor’s priority right to compensation for construction project price is a legal right

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The forms of the Contractor’s priority right to compensation include but are not limited to notice and negotiation If the contractor has claimed the priority of compensation for the construction project price in the above form during the period of exclusion, it shall be deemed that the claim has not exceeded the legal time limit for exercising the priority of compensation

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2

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The essence of the way in which the construction contractor purchases the house involved in the case by offsetting the project funds is to realize the priority right of the construction project price enjoyed by the construction contractor for the house involved in the case through negotiation

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The construction contractor and the developer compensate the outstanding project funds with the discount of the house involved in the case, which is in line with the priority right of the project price stipulated in Article 286 of the contract law of the people’s Republic of China This is the way

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3

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The creditor enjoys the ordinary loan creditor’s right to the developer, while the construction worker enjoys the priority of the construction project price for the house involved in the case, and the Contractor’s project payment creditor’s right has priority over the creditor’s ordinary creditor’s right

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The house involved in the case is the materialized carrier of the project payment creditor’s right

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This case does not apply to Article 28 of the provisions on enforcement objection and reconsideration, and the constructor has sufficient rights to the house involved in the case In order to exclude the enforcement of general creditors

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The court ruled that the following is the Supreme People’s court’s discussion on this issue in the “opinion of the court” part of the civil judgment: first, the construction machinery engineering company claimed the priority of compensation for the project price in the legal period to Dayi Yindu company

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The construction machinery engineering company submitted the first group of evidence: agreement, project cost settlement and completion acceptance report

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It is proposed to prove that: (1) on May 31, 2006, the construction machinery engineering company signed an agreement with Dayi Yindu company, which agreed that the construction machinery engineering company would contract the civil construction, water and electricity installation project of phase II of Yidu Shangcheng

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(2) After the construction of the construction machinery engineering company according to the contract, both parties handled the completion acceptance of the second phase A1B1 area project of Yidu Shangcheng on April 25, 2009, and settled the above project on September 29, 2009

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The second group of evidence: construction contract, supplementary agreement, completion acceptance report and project cost statement

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It is proposed to prove that: (1) on September 2, 2009, the construction engineering company signed a construction contract with Dayi Yindu company, which agreed that the construction engineering company would contract the civil engineering, water and electricity and decoration works of the area A-2 project of the third phase of the city

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(2) On December 15, 2009, the construction machinery engineering company and Dayi Yindu company signed a supplementary agreement, which agreed that the construction machinery engineering company would contract the civil engineering, water and electricity and decoration works of the third phase B-2 area project of the city

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(3) On January 8, 2011 and February 28, 2011, the construction machinery engineering company and Dayi Yindu company respectively handled the completion acceptance of the second phase A2 and B2 area project of Yidu Shangcheng

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(4) After the construction of construction machinery engineering company according to the contract, on March 28, 2011, both parties handled the settlement of A2 and B2 area project of Yidu Shangcheng phase III

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The third group of evidence: the statement on the delivery of the project by our company to Dayi Yindu Real Estate Development Co., Ltd

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issued to the Supreme Court on September 4, 2020

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It is intended to prove that: (1) on April 25, 2009, the construction machinery engineering company delivered the second phase project of Yidu Shangcheng to Dayi Yindu company

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(2) On January 8, 2011, the Provincial Construction Machinery Co., Ltd

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delivered the area A2 project of the third phase of Yidu Shangcheng project to Dayi Yindu company

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(3) On March 28, 2011, the construction machinery engineering company delivered the B2 area project of the third phase of Yidu Shangcheng project to Dayi Yindu company

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The fourth group of evidence: inquiry record, Sichuan Dayi County People’s Court (2020) Chuan 0129 Po Shen No

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3 civil ruling

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It is intended to prove that: the reasons for about 200 houses not being transferred stated in the above two evidences are related to the statement issued by Dayi Yindu company in the first instance of this case, the statement on the situation of Sichuan Construction Mechanization Engineering Co., Ltd

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in the second instance, and the statement on the reasons for not being transferred by Dayi Yindu company in the first and second instance It’s consistent

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Zijie investment company cross examined and said: it has no objection to the authenticity and legality of the first group of evidence and the second group of evidence, but has objection to the relevance; the construction project cost statement was issued on March 28, 2011, proving that the construction machinery engineering company has exceeded the six-month priority exercise period

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The authenticity and legitimacy of the third group of evidence are not recognized

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There is no objection to the authenticity and legality of the fourth group of evidence, but objection to the content and relevance of the proof

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The Court confirmed that: on May 31, 2006, Dayi Yindu company (employer) and construction machinery engineering company (Contractor) signed the “agreement”, which agreed that the construction machinery engineering company would contract Dayi Yindu company’s “Yidu Shangcheng” phase II project located in xiejiang village, Jinyuan Town, Dayi County

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The project content is: Civil Engineering and installation engineering, general layout engineering (except greening), with a building area of about 12 square meters The contract price is 72 million yuan

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In addition, the project coverage, contract duration and contract documents are also agreed

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On April 25, 2009, Dayi Yindu company, construction machinery engineering company, exploration unit, design unit, supervision unit and other five main bodies respectively made nine “completion acceptance reports” for 2-1 building, 2-2 building, 2-3 building, 2-4 building, 2-5 building, 2-6 building, 2-7 building, 2-8 building, 2-9 building of the second phase project of Yidu Shangcheng, and the quality acceptance was qualified

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On September 29, 2009, Dayi Yindu company and construction machinery engineering company signed the “construction project cost settlement statement” to settle the “area B1 of Dayi” Yidu Shangcheng “phase II project (13 # – 14 #, 11 # – 12 #, 21 # – 22 #, 26 # – 27 #)

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The project cost is 30498538.22 yuan

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On the same day, Dayi Yindu company and construction machinery engineering company signed the “construction project cost settlement statement” to settle the part of A1 area (1-9 building) of Dayi “Yidu Shangcheng” phase II project, with the project cost of 34468223.65 yuan

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On September 2, 2009, Dayi Yindu company signed the “construction contract of construction project” with construction machinery engineering company

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Dayi Yindu company contracted the phase III A-2 project of “Yidu Shangcheng” residential district located at 458 #, Dayi Avenue, Dayi County, to construction machinery engineering company

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The project content is “Civil Engineering, installation and decoration in construction drawings”

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The contract scope, construction period, quality standard and price are also agreed

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On January 8, 2011, Dayi Yindu company, construction machinery engineering company, exploration unit, design unit, supervision unit and other five parties respectively made four “completion acceptance reports” for 2-10 building, 2-19 building, 2-20 building, 2-25 building of the second phase project of Yidu Shangcheng, all of which were qualified

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On February 28, 2011, Dayi Yindu company, construction machinery engineering company, exploration unit, design unit and supervision unit made 7 completion acceptance reports on 2-15 building (29 building), 2-16 building (30 building), 2-28 building (38 building), 2-30 building (40 building), 2-17 building (31 building), 2-18 building (32 Building), 2-31 building (42 building) of the second phase project of Yidu Shangcheng, The quality acceptance is qualified.

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