The Ministry of Land, Infrastructure and Transport will promote the use of artificial intelligence (AI) technology to eliminate illegal subcontracting on construction sites. The aim is to monitor and control illegal subcontracting in the construction industry, where hundreds of thousands of contracts are simultaneously signed and projects are underway each year. While the Framework Act on the Construction Industry prohibits subcontractors from further subcontracting, such illegal practices persist across numerous construction sites. The Ministry plans to conduct research to create an analytical system capable of tracking suspicious illegal subcontracting companies using AI.
According to the construction industry on the 27th, the Ministry's Construction Site Compliance Monitoring Team has announced a bid for the 'Research on Measures to Eliminate Illegal Subcontracting Using AI' and will accept applications from the 28th to April 1st. This research aims to strengthen the early warning system that the Ministry has operated since 2014 by utilizing AI.
The Ministry operates a system called KISCON to monitor the prohibited practice of subcontractors further subcontracting. When contracting construction projects worth over 100 million won, it is required that information such as ▲project name ▲location address ▲type of construction ▲method of contracting ▲bidding method ▲contract amount be entered into the 'Comprehensive Construction Industry Information Network' within 30 days of the contracting date. This system contains information on an average of 170,000 construction sites annually. In some construction sites, multiple levels of subcontracting take place frequently, leading to the need for the government to manage and supervise data exceeding hundreds of thousands.
One of the reasons the government has recognized the risks of further subcontracting and has mobilized AI is the building collapse that occurred in the Dong-gu district of Gwangju on June 9, 2021. This incident, also known as the 'Gwangju Bus Incident,' happened while demolishing the Haksan Building at 717 Nammun-ro in Dong-gu for the redevelopment of the Hakdong District 4, as the demolition debris fell on a city bus, Gyeongnam 54, that was stopped at the bus stop near the Hakdong and Jeungsimsa entrance.
The bus was buried, resulting in casualties of 17 people (9 deaths and 8 injuries). According to the results of a government joint investigation committee, the reason for the inadequacy of the demolition was that the subcontracting companies were engaging in multi-tier subcontracting by subcontracting to other subcontractors. The primary contracting company responsible for the demolition and construction was HDC Hyundai Development Company, but multi-tiered contracts were established with Hansol Enterprise, Baeksoul Enterprise, and Asan Industrial Development among others. Four subcontracting contracts were concluded, with commissions received for each intermediate contract, and the demolition cost was reduced from 280,000 won per 3.3 square meters to 40,000 won.
To prevent such tragedies from happening again, the Ministry plans to utilize machine learning (ML) from AI to eliminate illegal sites. Machine learning is a field that develops technologies to enable computers to learn and improve on their own through experience.
Cho Suk-hyun, head of the Ministry's Construction Site Compliance Monitoring Team, noted, 'Currently, related personnel are manually comparing information to check the legality of construction contracts, but by training this with AI, we can filter out sites with a high likelihood of illegal subcontracting, increasing efficiency.' He added, 'The government's intention is to eradicate illegal subcontracting by utilizing this as a basis for field monitoring.'