Lotte Construction joined hands with the Korea Fair Trade Commission and the Korea Specialty contractors association to align on creating a fair transaction environment. Lotte Construction said on the 2nd that it signed a "construction industry win-win cooperation and fair transaction agreement" with the organizations on May 28 at the Specialty Construction Hall in Seoul.
The agreement was prepared to establish a proper transaction culture between prime contractors and subcontractor corporations, and to lay the groundwork for protecting small partner companies while growing together.
Key points of the agreement include: ▲ prompt payment of subcontracting fees and abolition of the practice of setting retention money ▲ prohibition of setting unfair special terms such as passing on industrial safety and waste disposal expense ▲ good-faith negotiations on price adjustments when raw material prices fluctuate ▲ practical operation of the subcontract price indexation system.
Financial support will also be reinforced to give small and mid-size businesses breathing room. Lotte Construction pays all subcontracting fees in cash, lends up to 15 billion won each year without interest, and operates a 57 billion won win-win fund, focusing on walking together with partner companies.