• Document Number：No. 14 [2004] of the Civil Division I of the Supreme People’s Court
• Area of Law： Contract
• Level of Authority： Documents of Judicial Interpretation Nature
• Date issued：12-08-2004
• Effective Date：12-08-2004
• Issuing Authority： Supreme People's Court
• Status： Effective

Letter of Reply of the Supreme People's Court on Whether Payment for a Renovation and Decoration Project Is Entitled to Priority in Compensation as Provided for in Article 286 of the Contract Law
(No. 14 [2004] of the Civil Division I of the Supreme People's Court)
The Higher People's Court of Fujian Province:
Your Request for Instructions on the Case of Fuzhou Kanghui Renovation Engineering Co., Ltd. v. Fuzhou Tiansheng Real Estate Development Co., Ltd. and Fuzhou Lvye Real Estate Agency Co., Ltd. regarding a Renovation Project Contract Dispute (No. 143 [2004], HPC, Fujian) has been received. Upon deliberation, the following reply is hereby made:
A renovation and decoration project constitutes a construction project, to which the provisions of Article 286 of the Contract Law of the People's Republic of China on priority in compensation may apply, unless the contract-issuing party of the renovation and decoration project is not the owner of the building or the contractor has no contractual relationship with the owner of the building. The contractor entitled to priority shall enjoy priority in compensation only to the extent that the value of the building increases as a result of the renovation and decoration.
December 8, 2004