Construction company acquitted on suspicion of subcontracting... "There is no set format for 'written consent'"

A construction company that was suspected of signing a subcontract without the contractor's permission was cleared of the charges.

On the 7th of last month, the Suncheon Police Station in Jeollanam-do decided not to forward Mr. A, the CEO of a construction company in his 50s, who was booked on charges of violating the Framework Act on the Construction Industry.

Mr. A is accused of subcontracting a new logistics center construction project from a construction company in 2022 and then subcontracting it again to another construction company without the supplier's permission.

According to Article 29, Paragraph 3 of the Framework Act on the Construction Industry, subcontracting is prohibited in principle, but subcontracting is exceptionally possible with written consent from the contractor when there is a need to increase construction efficiency.

The Busan Regional Construction Management Office of the Ministry of Land, Infrastructure and Transport reported that Mr. A did not receive written consent during the subcontracting process and requested a complaint from the relevant agency.

Mr. A denied the charges, saying that when signing a subcontract, he received a payment guarantee from the supplier agreeing on a method of repayment in the event of non-payment, and that this was in fact equivalent to written consent.

The police accepted Mr. A's claim and decided not to forward the case.

The police said, “The Framework Act on the Construction Industry prohibits subcontracting and requires written consent as an exception, but it does not even specify a form or format for consent.” They said, “The information written in the warranty confirms that the supplier knew that it was a subcontract and approved it, so there is insufficient evidence to admit the suspect’s charges.”

Attorney Sangwan Oh of Daeryun Law Firm, who represented Mr. A, added, "Since the Framework Act on the Construction Industry only stipulates 'agreement in writing,' implied consent may also be permitted. Even though 'agreement to subcontract' is not directly stated in the warranty, the obligation to consent in writing can be seen as being satisfied because the intention to agree to this is included."
 

Go Woori (wego@ikbc.co.kr)

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Constructor acquitted on suspicion of subcontracting... "There is no set format for 'written consent'" (Shortcut)