The so-called subcontracting is engaged in EPC contractor will contract a portion of the contract for building works appropriately qualified contractor behavior. According to China's "Construction Law" Article 29, sub-act itself is allowed by law, but must be subcontracted under certain conditions, such as the violation of these conditions constitutes illegal subcontracting. The present case, a Board of iron as a general contractor, the Punan highway sections Pucheng Kim Shin company subcontracted to the defendant having the construction quality of the construction, in line with the provisions of China's "Construction Law", the two sides of the contract valid. But subcontractors defendant Kim Shin company will subcontract part of the project again to the defendant and the defendant Li Youren part of the project will be subcontracted to the plaintiff Xu Jiansheng's behavior has violated the prohibitions of the law, are illegal subcontracting.
Supreme People's Court promulgated in 2004 with "interpretation on the trial of Construction Contract Disputes applicable legal issues," the interpretation of the provisions of Article 26: "the actual construction to subcontractors, illegal subcontracting man accused the prosecution, the court shall accept it. The actual construction of the accused person to contract human rights advocates, the court may add subcontractor or illegal subcontracting man party to the case, the developer responsible for the actual construction works only within the price range of arrears. "This provision It is to provide for the protection of the legitimate rights and interests of migrant workers make. Where the "Employer", in theory, have different interpretations. Pucheng County Court judge that, for the Employer, should be narrowly understood, in this case should refer only to iron in a bureau, but can not be expanded to explain to the accused Kim Shin also understood as Employer.
To curb illegal subcontracting and subcontracting behavior of repeated current field of construction, to better protect the interests of creditors, should strengthen the legal liabilities of illegal subcontracting. The present case, since the defendant and the defendant company Kim Shin existence of common fault on illegal subcontracting, project payment arrears shall bear joint liability.
