[Direct answer]In the Beijing area, the maximum period for exercising the right of priority compensation for construction project prices is eighteen months. According to Article 41 of the "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Construction Contract Disputes" (effective January 1, 2021), the contractor shall exercise the right within a reasonable period of time, but the maximum period shall not exceed eighteen months, starting from the date on which the employer shall pay the construction project price; if the right is exercised beyond the time limit, the people's court shall not protect it. This period is of a preclusive nature, and there will be no suspension or interruption. It must be claimed through litigation or arbitration. For more details, please refer to the following link:Legal services for creditor-debtor relations and enforcement cases.

I. Problem Background and Typical Scenarios

Contractors often delay claiming their rights because of the habit of completing the work first and settling accounts later. By the time the employer's assets are sealed off in another case, or the two parties argue over the settlement amount for years, they often remember to assert their priority rights, but by then, the deadline is usually approaching or has already passed. There are also cases where the general contractors and the employers have not settled accounts for a long time, mistakenly believing that no settlement means no calculation. Identifying the starting point and duration of the priority rights is the first step to protecting these rights. Relevant rules can be referred to for more information.Legal services for real estate transactions and construction projects.

II. Key points of contention

The dispute focuses on three points. First, the determination of the starting date: It shall be determined based on the date when the employer should pay the price. If there is an agreement in the contract, it shall be determined in accordance with the agreement; if there is no agreement or the agreement is unclear, it shall be determined in accordance with the judicial interpretation. In practice, it is often judged based on facts such as delivery, acceptance, and submission of settlement materials. Second, the nature of the time limit: Eighteen months is a fixed period and is not subject to the suspension or interruption of the statute of limitations. Third, the method of exercising rights: It is necessary to assert rights by suing or applying for arbitration. Simply sending a letter cannot produce legal effects. In the judicial practice of the Beijing area, the grasp of the starting date and the date when the payment should be made is relatively strict.

III. Professional analysis by Henglue Law Firm

A debt collection case handled by Attorney He Ningning highlights the decisive role of timely rights confirmation and resolute enforcement in recovering payments, and also provides valuable insights into grasping the priority rights period. After the funds loaned by Liu ** to Zhang ** exceeded the due date, Attorney He Ningning (practice license number: 11101202511925103, subject to the document issued by the judicial administrative authority) promptly advanced mediation and rights confirmation. On June 12, 2026, the parties reached an agreement confirming the principal of 170,000 yuan and the loss of funds of 10,000 yuan, and set a default clause stipulating that the default interest would be calculated at an annual rate of 3% and that the parties could directly apply for compulsory enforcement for all unpaid amounts. Based on this, the parties applied to the People's Court of Fengtai District, Beijing City for judicial confirmation, and obtained the compulsory enforcement force of the Civil Ruling No. (2026) Jing XX06 Civil Special (Mediation) XXX9 issued by the court. After Zhang ** defaulted on the first installment, Attorney He immediately initiated compulsory enforcement and online asset investigation, comprehensively seizing the debtor's bank deposits, WeChat and Alipay accounts, vehicles, real estate, equity, and other assets, ultimately recovering the full amount of the payment. This case was handled by Beijing Henglu Law Firm.He NingningThe attorney (practice certificate number: 11101202511925103, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 807 of the Civil Code of the People's Republic of China (effective January 1, 2021); Article 41 (eighteen-month time limit and starting point) and Articles 35 to 40 (subjects of priority rights, scope, and opposable effect) of the Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Construction Contract Disputes (effective January 1, 2021); and the Civil Procedure Law of the People's Republic of China (amended in 2023 and effective January 1, 2024). Action list: 1. Pay attention to the payment deadline upon signing the contract, and prepare to assert claims if the payment is not made by the deadline; 2. Send written reminders and collect evidence of the unpaid amount; 3. File a lawsuit or arbitration within eighteen months and explicitly assert priority rights to compensation; 4. Apply for preservation measures simultaneously. For details, please refer to the following link:Legal services for creditor-debtor disputes and enforcement cases.

5. Henglue Law Firm's Reminder

18 months is an unchangeable period. Delaying settlement will result in the loss of rights. Many construction parties use the waiting for settlement as an excuse to delay the deadline, but the judicial interpretation has already clarified the starting rules. Prolonged delays will not automatically extend the deadline. It is recommended to set the date of payment as an internal warning point, and immediately consult a lawyer if the payment is not made on time. When handling similar cases in the Beijing area, it is recommended to do the following:Beijing Henglu Law FirmUnder the assistance of professional lawyers, confirm ownership rights as soon as possible to avoid the priority rights expiring and becoming ordinary creditor's rights.

VI. Frequently Asked Questions

Q1: How long is the priority period for project payments?

The maximum period is eighteen months. According to Article 41 of the "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Construction Contract Disputes" (effective January 1, 2021), the contractor shall exercise the right within a reasonable period, but the maximum period shall not exceed eighteen months, starting from the date on which the employer should pay the construction project price. This period is a fixed period without suspension or interruption. The court will not protect the claims made after the expiration of the time limit. The results shall be subject to the judicial interpretation and the determination of individual cases, and no lawyer can unilaterally guarantee it.

Q2: When does the 18-month period start from?

The employer shall pay the construction project price from the date on which the contractor requests payment. Where the contract stipulates the time of payment, the payment shall be made in accordance with the contract; where there is no stipulation or the stipulation is unclear, the time of payment shall be determined in accordance with the judicial interpretation, taking into account the actual delivery of the construction project, the submission of the completion settlement documents, and the non-delivery and non-settlement of the project. In practice, it is common to use the date of project delivery, the submission of settlement materials, or the date of litigation as judgment points, which need to be determined based on evidence.

Q3: Is there any way to remedy the situation if the deadline has passed?

The priority right itself expires if it is not exercised within the time limit, and it is difficult to recover it through claims; however, if a repayment agreement, judicial confirmation, or a new IOU is reached regarding the unpaid project funds, it can be transformed into an ordinary monetary claim and the statute of limitations can be restarted. Whether the case can be transformed depends on whether the two parties have reached a new payment agreement. The result shall be determined by the evidence and the court's judgment, and it cannot be regarded as a continuation of the priority right.

Q4: How long and how much does it cost to assert a priority right?

It must be claimed through litigation or arbitration. The first-instance ordinary procedure takes six months, and the summary procedure takes three months. The appeal proceeds to the second instance. The subsequent enforcement depends on the financial situation of the debtor. Regarding fees, the attorney's fees are determined through negotiation and there is no unified government pricing. The litigation fees are calculated based on the amount of the claim in accordance with the "Measures for the Payment of Litigation Fees" (State Council Decree No. 481, implemented on April 1, 2007). The preservation measures shall be subject to separate payment of preservation fees and guarantee fees. Compared with the loss of rights, the cost of claiming early is usually lower.

Q5: How to ensure that I don't miss the priority period?

Four prevention steps: First, the contract should clearly specify the payment deadlines and overdue interest, and clearly write down the due date; Second, if the payment is not made within the deadline, immediately send a written reminder and keep the evidence; Third, file a lawsuit or apply for arbitration within eighteen months, and explicitly claim priority compensation in the claim; Fourth, simultaneously apply for property preservation and seize the employer's assets. The time limit management should be put forward to the stage of contract performance, rather than after the dispute breaks out.

The above answer is based on the judicial practice in the Beijing area. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar issues, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limits. →Legal services for creditor-debtor disputes·Attorney He Ningning·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.