DL E&C announced on the 13th that it received an excellent rating of AA in the '2024 Fair Trade Compliance Program (CP) Grade Evaluation' published by the Korea Fair Trade Mediation Agency under the Fair Trade Commission.
At the certificate award ceremony held the previous day at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, Hong Seung-hoon, the compliance risk management officer of DL E&C, attended. On that day, DL E&C was also introduced as an excellent case of compliance management.
CP is a compliance monitoring system that corporations implement and operate on their own to comply with laws and corporate ethics. It evaluates whether a corporation's compliance policies and risk management are being effectively operated and assigns a grade.
Due to the nature of the construction industry, which involves various construction types, there is a high dependency on subcontractors. Various illegal activities such as poor construction results and wage arrears are often due to unfair subcontracting, making compliance management capabilities essential. DL E&C received high praise for its excellent practices, including the development of indicators that analyze compliance risks and the implementation of a computerized system for all work directives since it introduced CP in 2006.
DL E&C is managing factors that encourage unfair transactions or delay fairness through the 'DIC (Delay Issue, Incomplete Issue, Cost Suitable) Index.' The key is to detect and prevent potential risk factors in advance based on accumulated big data from the site.
The index developed last year by DL E&C classifies the risk level into three grades by analyzing unfair transaction behaviors such as delay in issuing written documents, incomplete issuance, and unsuitable execution of costs, along with construction progress rates and cost rates. Sites deemed to have a high likelihood of compliance risk, categorized in the top 1-2 grades, are designated for concentrated management.
DL E&C has fully digitized its work instructions. To eradicate the common unfair practice of not issuing written documents, it proactively introduced an 'Online Work Instruction Issuing System' in 2022. Over the past two years, a total of 2,654 online work instructions have been issued. These work instructions are stored on a secure server and can be viewed in real-time.
DL E&C also resolved the issue of the non-issuance of written documents, a major cause of disputes such as non-payment. Until now, the use of paper work instructions at construction sites led to a persistent problem where written instructions were not issued as a matter of practice or work was frequently directed verbally.
Having been selected as an excellent company in CP operation, DL E&C will receive incentives such as reduced penalty surcharges and exemptions from official investigations in the future.
Hong noted, “This certification is the result of recognizing our commitment and efforts towards compliance management by identifying and preventing risks in advance,” and added, “We will expand a compliance culture that earns the trust of employees and stakeholders, thereby establishing a foundation for sustainable growth.”