Abstract

The nature of construction subcontracting contracts is similar to that of subcontracting agreements, whereby the contractor assumes the obligation to pay compensation to the subcontractor as consideration for the completion of the contracted work. In construction subcontracting contracts, the fulfillment of the subcontractor’s compensation claim rights depends on the determination of “completion of work” established by the Supreme Court. The essential issue in interpreting the concept of “completion of work,” which serves as a fundamental indicator of subcontracting contracts, arises in relation to the fulfillment of the subcontractor’s compensation claim rights. The underlying cause of this issue lies in the explicit provisions of our Civil Code, which stipulate that the subcontractor is solely obligated to complete the work, while the contractor is only required to pay compensation for the completed work. Consequently, disputes arise regarding the point at which the obligation to pay compensation arises for the contractor. Therefore, this study aims to examine the meaning of the subcontractor’s compensation claim rights and the significance of “completion of work” as the essential indicator in subcontracting contracts. To achieve this, we review scholarly opinions on the meaning of the subcontractor’s compensation claim rights and the period of claim fulfillment, and examine the criteria established by domestic Supreme Court rulings, with the objective of identifying issues and proposing alternatives.

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