If the contractor is bankrupt, can the actual builder sue the owner?

Workers who are bankrupt and actually carry out the work can be sued.

But not on the owner's side.

Basic Case Details] In March 2006, Tianyu Company and China Construction Corporation signed a Construction Project Construction Contract, stipulating that Tianyu Company would contract the civil engineering and installation works of its plant to China Construction Corporation to undertake construction, and the commencement date was tentatively scheduled for April 28, 2006 (subject to the actual commencement report), and the completion date was March 1, 2007. If the employer fails to pay the project price as agreed in the contract, and the two parties fail to reach an agreement on deferred payment, the contractor may stop the construction and the employer shall bear the liability for breach of contract.

On May 23, 2006, the construction company organized the construction, and in 2007, the main projects such as the plant of Tianyu company were completed. Later, because Tianyu Company did not pay the project payment according to the contract, the project was suspended, and the project has not been completed so far. Subsequently, Tianyu Company was filed for bankruptcy by others due to its inability to pay off its due debts, and the Chuzhou Intermediate People's Court ruled to accept the bankruptcy application on August 26, 2011.

On October 10, 2011, CCC declared its creditor's rights to the bankruptcy administrator of Tianyu Company and claimed that it had the priority right to be repaid for the project. On August 27, 2013, CCC filed a lawsuit, requesting confirmation that its claims have a priority right to be repaid. The case was heard by the Chuzhou Intermediate People's Court and the Anhui High People's Court, and both judgments:

It is confirmed that the construction company has the priority right to be repaid for the declared creditor's rights and the civil engineering and installation projects of the production plant of Tianyu Company under construction.

Main Points of the Judgment] In this case, although the construction contract stipulated the completion time of the project, the construction was suspended because Tianyu Company failed to pay the project price as agreed. There is no evidence to prove that the construction contract signed by the two parties has been dissolved or terminated after the suspension of the project and before the court accepts the bankruptcy application, and there is no evidence to prove that the bankruptcy administrator decided to continue to perform the contract after the court accepted the bankruptcy application. According to Article 18 of the Bankruptcy Law, if the administrator fails to notify the contractor of the uncompleted project to continue to perform the contract within two months from the date of acceptance of the employer's bankruptcy application, the construction contract shall be deemed to be terminated.

In accordance with the spirit of the minutes of the Supreme People's Court's National Civil Trial Work Conference, if the contract is rescinded or terminated due to reasons attributable to the employer, the time limit for the contractor to exercise the right of priority for compensation is calculated from the date of termination of the contract. Therefore, the deadline for CCC to claim the priority right to be compensated for the project money was before April 26, 2012. On August 26, 2011, the court ruled to accept the bankruptcy application against Tianyu Company, and on October 10, 2011, the Construction Corporation declared its creditor's rights to the bankruptcy administrator of Tianyu Company and claimed the priority right to be repaid for the construction money.

If the contractor goes bankrupt, of course the actual construction personnel can sue the owner, isn't this his thing? You have worked for him, and you must pay for it, right?

If the owner fails to pay the bankrupt contractor, the contractor goes bankrupt and the construction worker may sue the owner.

If the contractor goes bankrupt, it shall settle the part that has been completed, and the settlement money shall be used as bankruptcy assets to pay off debts. It has gone bankrupt and cannot entrust the follow-up project payment to the individual's name.

Article 43 of the Interpretation (1) on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Construction Contracts.

If the actual re-excavation constructor sues the subcontractor or illegal subcontractor as the defendant, the people's court shall accept it in accordance with the Calling World Auction Law. Where the actual contractor claims rights with the employer as the defendant, the people's court shall add the subcontractor or illegal subcontractor as the principal and the third party in the case, and after ascertaining the amount owed by the employer to the subcontractor or the illegal subcontractor for the construction project price, make a judgment that the employer shall bear responsibility for the actual contractor within the scope of the unpaid construction project price.

Summary. Hello, according to the Interpretation (I) of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Construction Contracts, the actual constructor may claim rights for the defendant in the event that the subcontractor or the illegal subcontractor owes the project payment, and the people's court shall rule that the employer shall be liable to the actual constructor within the scope of the unpaid construction project price after ascertaining the amount owed by the employer to the subcontractor or the illegal subcontractor. In practice, this provision effectively protects the legitimate rights and interests of the actual constructor.

Hello, I am honored to answer for you: the actual constructor can protect its rights and interests by filing an ordinary claim confirmation lawsuit against the bankrupt employer. The lawsuit for confirmation of ordinary claims refers to the fact that the builder applies to the court to confirm its claim against the bankruptcy employer, and requests the court to confirm and protect the creditor's rights.

This type of action applies to claims that have not been recognized in insolvency proceedings. <>

When filing a lawsuit for confirmation of ordinary creditor's rights, the builder needs to provide relevant evidence, such as contracts, invoices, payment vouchers, etc., to prove his claim against the bankrupt employer. If the court confirms the contractor's creditor's rights, then the contractor can obtain the corresponding distribution rights in the bankruptcy proceedings to protect its own interests. <>

Hello, according to the Interpretation (I) of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Cases of Disputes over Construction Contracts, the actual constructor may claim rights for the defendant in the case of the subcontractor or the illegal subcontractor owing the project payment, and the people's court shall find out the amount of the construction project price owed by the employer to the subcontractor or the illegal subcontractor, and rule that the employer shall bear the responsibility for the actual constructor within the scope of the unpaid construction price of the construction project. In practice, this provision effectively protects the legitimate rights and interests of the actual constructor.

Summary. Hello, dear, due to the bankruptcy and liquidation of the construction enterprise, the actual builder can sue the employer. The relationship between the employer and the actual constructor is realized through intermediaries such as the general contractor and subcontractor.

If the employer has signed a contract with the actual contractor through these intermediaries to guarantee the wages and related expenses of the actual contractor, then the actual contractor may file a complaint with the intermediary and request the intermediary to claim compensation from the employer. <>

Due to the bankruptcy and liquidation of the construction enterprise, can the actual contractor sue the employer?

Hello, dear, due to the bankruptcy and liquidation of the construction enterprise, the actual builder can sue the employer. The relationship between the employer and the actual rock cluster builder is realized through intermediaries such as the general contractor and subcontractor. If these intermediaries have signed a contract with the actual contractor to guarantee the wages and related expenses of the actual contractor, then the actual contractor may file a complaint with the intermediary and request the intermediary to claim compensation from the employer.

Hello, dear, <>

If the employer directly signs a contract with the actual contractor, the bankruptcy bench of the enterprise adjacent to the construction is not in a false way, which will affect the contractual relationship between the employer and the actual contractor. In this case, the actual contractor may file a lawsuit with the court to demand that the employer perform the contract and make payments. <>

Hello, dear, <>

Whether the actual contractor can sue the employer depends on the contractual relationship between them and the actual situation. <>

Summary. It can be recovered in accordance with the law, otherwise it is defined as arrears of wages. The arrears of project payments are illegal.

Litigation can be adopted, specifically: 1. The mastery of litigation time. Businesses should choose the best time to sue:

The project payment is in arrears, and the project involved in the case has been completed and accepted, signed and sealed; When there is a delay or serious arrears in the construction project. Legal means shall be employed in a timely, accurate, and resolute manner to strictly prevent passive prosecution. 2. Necessary conditions for filing a lawsuit.

1) Accurate selection of defendants. At the time of initiating a lawsuit, as long as the employer is selected, any party to bear the form of joint and several liability guarantee, including one or more persons as defendants or co-defendants, can be selected, and the primary criterion or precondition for selection is "ability to pay". (2) The evidence must be sufficient.

Because of the long cycle, large investment, most of which are concealed projects and strong professionalism, the relationship between the civil code and law is relatively complex, and once the dispute arises, the owner often defends the counterclaim with the quality and construction period, which increases the difficulty of the lawsuit, so we must spend the greatest energy to collect, sort out and analyze the evidence before the lawsuit, and conduct a comprehensive analysis at multiple levels and in multiple directions from the perspective of the defendant and the judge, so as to "know ourselves and know the other", and avoid blind litigation. and (3) the scope of the claim.

It can be recovered in accordance with the law, otherwise it is defined as arrears of wages. The arrears of project payments are illegal. Can be promoted to take the form of noisy litigation, specifically:

1. Mastery of litigation time. Enterprises should choose the best time to sue: the project payment is in arrears, and the project involved in the case has been completed and accepted, signed and sealed; When there is a delay or serious arrears in the construction project.

Legal means shall be employed in a timely, accurate, and resolute manner to strictly prevent passive prosecution. 2. Necessary conditions for filing a lawsuit. 1) Accurate selection of defendants.

At the time of initiating a lawsuit, as long as the employer is selected, any party to bear the form of joint and several liability guarantee, including one or more persons as defendants or co-defendants, can be selected, and the primary criterion or precondition for selection is "ability to pay". (2) The evidence must be sufficient. Because of the long cycle and large investment, most of the construction contracts are concealed projects and strong professionalism, the relationship between the civil code and law is relatively complex, and once the dispute arises, the owner often defends the counterclaim based on the quality and construction period, which increases the difficulty of the lawsuit, so we must spend the greatest energy to collect, sort out and analyze the evidence before the lawsuit, and conduct a comprehensive analysis from the perspective of the defendant and the judge, so as to "know oneself and know the other", and avoid blind litigation.

and (3) the scope of the claim.

No, you can't.

Dear, hello, I am glad to answer for you the owner's project money after the collapse of the construction company can be paid directly to the actual contractor Answer: In the bankruptcy case of the company, the construction project money is only the auction price of the project or the project discount price priority is compensated, if the project auction money is not enough to pay the balance of the project money, it shall be repaid in accordance with the provisions of Article 113 of the "Enterprise Broken Branch Pants Property Law" in accordance with the ordinary creditor's rights. After the company goes bankrupt, it can protect its rights by filing a civil lawsuit and requesting the court to order the other party to bear the corresponding payment liability.

In a bankruptcy case, the construction project price is only the auction price or the project discount price in priority, and if the project auction price is insufficient to pay the balance of the project price, it shall be repaid in accordance with the ordinary creditor's rights in accordance with Article 113 of the Enterprise Bankruptcy Law.