Despite Rising Prices, Contract Terms Remain 'Unchanged'... Anti-Corruption Commission Recommends Improvements to Unfair Construction Supervision System

"Resolving Issues Such as Non-Payment of Appropriate Fees by Ordering Agencies and Transfer of Inconvenience and Burden to Construction Technicians"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] Various unfair practices, such as not adjusting contract amounts despite rising prices during construction supervision, are expected to be improved.

The Anti-Corruption and Civil Rights Commission (ACRC) recommended institutional improvement measures to the Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, and Korea Rail Network Authority to protect the rights of construction engineering companies and technical personnel. Since early this year, the commission held meetings with construction engineering companies and the Korea Construction Technology Management Association, conducted on-site surveys of affected companies, identified problems, and then recommended improvements.

According to the ACRC, issues have been revealed where the burden is shifted to the relatively weaker construction engineering companies in supervision service contracts, worsening the treatment of construction technicians. A representative problem was that even when price fluctuations justified contract amount adjustments, the contract amount was not increased for the business operators.

Other issues identified include ▲lack of clear settlement basis for direct expense execution ▲unconditional reductions regardless of actual expenditure ▲setting project performance evaluation criteria excessively higher than usual standards, restricting market entry for new and small companies ▲increasing the workload of construction technicians by integrating multiple supervision services without reasonable integrated ordering standards ▲indiscriminate subcontracting of some supervision services leading to quality degradation and proliferation of low-price subcontract contracts.

Accordingly, the ACRC recommended to the Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, and Korea Rail Network Authority to ▲establish mandatory adjustment procedures when contract amount adjustment reasons arise due to price fluctuations ▲clearly define the basis for direct expense settlement and allow changes or increases between budget items ▲lower evaluation criteria set excessively higher than usual standards ▲specifically set integrated ordering requirements for supervision services ▲principally restrict subcontracting in construction engineering and specify subcontracting requirements and procedures.

Yang Jongsam, Director of the Policy Improvement Bureau at the ACRC, said, "This institutional improvement provides an opportunity to ensure appropriate compensation and treatment for construction technicians who have played a pivotal role in the development of the construction industry despite harsh working conditions at construction sites, along with corresponding responsibilities and duties."

The ACRC recommends institutional improvements to related agencies to resolve public inconveniences and corruption-inducing factors received through policy communication channels such as 'National Sinmungo', 'National Call 110', and 'National Idea Box'. Since the inauguration of the Moon Jae-in administration until October this year, 261 institutional improvements have been recommended, with an agency acceptance rate reaching 98%.

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