Abstract

Since subcontracting transactions are characterized by a vertical structure, a superior position in the contractual relationship is premised. Various institutional devices have been prepared to suppress unfair subcontracting transactions caused by these structural problems and to establish a fair subcontracting market environment. However, due to changes in the economy, technological environment, and labor market, many issues are still being raised regarding subcontracting, and a systematic approach is currently under discussion. The Unit Price Adjustment System, which has been actively discussed recently, has also sparked debate about how to share risks between the parties to the subcontracting contract stemmuing from the rise in raw material prices due to unexpected special circumstances such as COVID-19 or the Ukraine crisis. This rise is raw material prices significantly increases the cost of providing the product or service specified in the subcontract; thus if the unit price of delivery is not revised, this will substantially reduce the profit of the subcontractor. Therefore, the Unit Price Adjustment System can be considered as supplementary measure. However, construction is traditionally the field in which subcontracting is used the most. In addition, construction work does not produce standardized products uniformly, unlike normal manufacturing, but requires various types of products according to the demands of the ordering party. Thus, the intermediate products produced by various construction entities participating in the vertical structure of the construction work are closely linked to completion of the final product. After all, in the vertical structure of construction work, cooperation through consultation and coordination among participants is very important. Therefore, it would be desirable to design and operate the legislative policy on the adjustment of subcontract price in such a way that voluntary consultation and mediation between the parties to the contract can be strengthened.

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