[2020 Asia Construction Awards] Hanshin Engineering & Construction Focuses on Financial and Accounting 'Strengthening Partner Companies' Self-Sustainability'

Minister of Land, Infrastructure and Transport Commendation in the Management Innovation (Win-Win Growth Support) Category

Hanshin Gongyeong hosted a golf event last year, inviting outstanding partner companies.

[Asia Economy Reporter Donghyun Choi] Hanshin Engineering & Construction, awarded the Minister of Land, Infrastructure and Transport’s Commendation in the Management Innovation and Win-Win Growth Support category, pursues sustainable management through the establishment of a win-win growth culture in the construction industry. In particular, it spares no support in education, technology, and funding with a focus on helping partner companies build self-sustainability.

Hanshin Engineering & Construction places great importance on win-win cooperation through financial and fiscal support. To support the finances of partner companies, it has steadily increased the cash ratio and is also working to stabilize their finances and normalize management through emergency fund support, early payment of holiday progress payments, and reflection of unit price increases. Additionally, when problems arise at partner companies contracted with Hanshin Engineering & Construction, it implements subrogation payments to prevent a chain of bankruptcies and defaults among secondary partner companies. It also supports improvements in guarantee limits and refunds of fees by confirming partial extinguishment before the expiration of contract performance guarantee periods for partner companies.

It is also focusing on win-win growth through the establishment of a transparent and prompt information disclosure system. Hanshin Engineering & Construction conducts electronic bidding to ensure transparency and discloses the winning bid amount within seven days. Since 2014, it has held on-site presentation briefings to prevent losses caused by quotation errors from partner companies in advance.

Furthermore, to prevent the spread of the novel coronavirus disease (COVID-19), it avoids face-to-face briefings and is considering partial introduction and expansion of electronic briefing systems to alleviate the inconvenience of remote participation. In addition, it notifies companies in advance of contract award news through the electronic procurement bulletin board, encouraging partner companies’ willingness to participate and enabling all partner companies to transparently share contract information.

Hanshin Engineering & Construction is also committed to building trust in fair trade through continuous education. It conducts subcontracting law compliance training to eradicate unreasonable behavior among employees. Moreover, through a win-win cooperation council composed of clients, construction companies, and partner companies, it strives to eliminate unreasonable construction practices and establish a mutually developing construction culture. To fundamentally block the occurrence of unfair trade practices, it strictly adheres to the four major practices of the Fair Trade Commission: ▲desirable contract conclusion ▲fair selection and operation of partner companies ▲establishment of an internal review committee for subcontract transactions ▲and proper issuance and preservation of documents.

Sharing achievements through technological cooperation is another key point emphasized by Hanshin Engineering & Construction for win-win growth. It has achieved results in enhancing partner companies’ technological capabilities by supporting technology briefings, joint research, and joint patent applications. In particular, the 'Performance Sharing System,' which proposes research tasks interactively with partner companies and provides benefits such as technical support, joint patent applications, and expanded transactions to selected partner companies, has received positive responses from the industry.

Hanshin Engineering & Construction conducts annual customer satisfaction surveys and analyses according to its own customer satisfaction promotion regulations. This is to measure the degree to which partner companies’ requirements are met and to improve related issues accordingly.

It has also established a cyber grievance center where customers, partner companies, and employees can report unfair business practices.

Furthermore, Hanshin Engineering & Construction practices ethical management based on its corporate philosophy of 'Hyo (孝)' and strives to establish a sound corporate culture through continuous education.

This content was produced with the assistance of AI translation services.