Daemyung Construction Fined by Fair Trade Commission for Not Paying Subcontractors Despite Increasing Construction Costs

Daemyung Construction received an increase in the construction amount but did not provide the increased portion to the subcontractor, resulting in a warning from the Fair Trade Commission.

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According to the Fair Trade Commission on the 20th, Daemyung Construction entrusted window installation work to a subcontractor from August 2020 to March 2022 and received an increased construction payment twice from the client due to rising prices. It was investigated that they did not notify the subcontractor of this within the legal deadline and did not increase the subcontract payment.

According to the Subcontracting Act, if the original contractor receives an increased contract amount from the client, they must notify the subcontractor of the reason and details of the increase within 15 days. Additionally, they must increase the subcontract payment within 30 days according to the proportion of the contract amount. It was also revealed that they instructed the subcontractor to perform additional or changed work without issuing additional or changed contracts by the start of construction.

The Fair Trade Commission stated, "Considering comprehensively that the increased subcontract amount was not large compared to the overall scale of the construction, we issued a warning."

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