The Fair Trade Commission imposed a penalty on Wooshin Construction… Suspicion of’non-issuance of written documents and unfair setting of special contracts’

▲ Government Complex Sejong Fair Trade Commission ⓒ New Daily DB

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The Fair Trade Commission imposed a fine of 16 million won along with a corrective order on Wooshin Construction for violating the subcontracting law such as non-issuance in writing.

According to the Fair Trade Commission on the 4th, Wooshin Construction is being accused of violating the obligation to guarantee the payment of subcontracted payments, unpaid special contracts, non-payment of bill discounts and subcontractors during the transaction process.

Wooshin Construction Co., Ltd. did not issue a document reflecting the increase or decrease in construction volume and cost due to the change in construction method after consigning reinforced concrete construction in the new apartment construction in Dalseong-gun, Daegu in October 2016.

In addition, there is a suspicion of restricting the right of contractors to apply for subcontract adjustment by setting a special agreement that there is no change in the contract amount due to fluctuations in prices.

The subcontracting law gives the contractor the right to apply for the adjustment of the subcontract price to the original business operator when the price of raw materials changes and it is inevitable to adjust the subcontract price, which violates this.

In addition, a special agreement was established that the contractor shall bear the full responsibility for compensation in the event of a disaster, so that the contractor shall bear the responsibility of the safety accident, regardless of the position of responsibility for the safety accident.

In addition, it was necessary to guarantee the payment of the subcontract payment within 30 days after the contract, but the payment guarantee for the subcontract payment was insufficient even though the payment guarantee was not exempted.

An official from the FTC said, “The original business operator has made a sanctions decision for an unfair special agreement that limits the right to apply for adjustment of subcontracting payments or transfers responsibility for industrial accidents by using its superior position.” “We will strengthen the monitoring of the transfer of the burden to the supply and demand service provider.”