- Establishment of an unfair special agreement that bears additional construction costs to the subcontractor, corrective order and fine of 32 million won for the act of ordering additional construction without issuing a document -
The Fair Trade Commission (Chairman Han Kijung, hereinafter referred to as the "Fair Trade Commission") decided to impose a corrective order and a fine of 32 million won after detecting that Heunghwa set up an unfair special agreement and did not issue a document on additional or change construction while entrusting the "Electric Work during the extension work of the Pyeongtaek material building of Samsung Electronics" to the supplier.
In particular, Heunghwa Co., Ltd. entrusted the "electric work during the extension of Samsung Electronics' Pyeongtaek material building" to the supplier around July 2019, setting up an unfair special agreement that excludes the settlement of additional costs incurred by additional construction, unexpected situations, and protrusion work that are not in the drawing.
In addition, a total of 10 additional and change works were ordered to the same contractor from July 2019 to August 2020, and a subcontract document stating the contents, period, and price of the construction was not issued until the start of the construction.
In this regard, Heunghwa Co., Ltd. refused to pay construction costs on the basis of a special agreement that excludes additional construction costs, even though it was responsible for not issuing a document stating the unit price and quantity required for settlement.
In order to establish a subcontracting transaction order and prevent violations of the same or similar laws in the future, the FTC imposed a correction order and a fine of 32 million won on non-issuance in writing, and also ordered correction of unfair special agreements.