Title Improvement of Contract Change Order System for the Fairness of Subcontracting in Public Construction Projects
Authors Cho, Youngjun
DOI http://dx.doi.org/10.6106/KJCEM.2020.21.5.003
Page pp.3-10
ISSN 2005-6095
Keywords Subcontract; Change Order; Fair; Information
Abstract Subcontracting of construction is essential to carry out public construction projects. Subcontractor of the construction work shall enter into a contract with the original contractor without directly entering into a contract with the owner. Subcontracts are therefore greatly affected by the original contract with the owner. To protect subcontractors, the Fair Trade Act is enacted and the construction company’s standard subcontracting contract is in operation. However, subcontracts are not properly reflected in the Government contract system, which deals with the relationships between the owner and the original contractor. In particular, the subcontractor may complain of difficulties at the public construction site as such procedures are not properly reflected in the construction work standard subcontract, although various procedures shall be carried out depending on the amount when change order occurs in subcontracts. Thus, the direction of improvement of subcontracting systems was proposed in the case of change order at public construction project sites as follows: First, the rights of subcontractors should be strengthened. Second, in order to resolve the information non-identity, subcontractors should have access to information related to subcontracts. Third, the status of subcontractor shall be guaranteed by reflecting the characteristics of the subcontract when the original contract for public works is concluded. Fourth, the dispute settlement method should be prioritized over litigation in order to fair subcontracting.