Issue Focus

Despite its sophistication, the controversial delivery price indexation system, which was implemented from October 4, 2023, has difficulty in reflecting the characteristics of diverse subcontracts between contractors and subcontractors. Although the relevant ministry publicizes the system through various methods such as guidebooks, FAQ, and its online homepage as well as laws and regulations, actual work-site operations are going through confusion. Particularly in the case of construction industry, given the unique characteristics of order-made production industry, the operation of multi-level construction regulatory system for subcontract transactions, and complicated contract transaction types, the system should have been designed in consideration of peculiarities of the industry. However, only a system commonly applicable to all industries was considered in the design of the current indexation system, which aggravates the confusion. Hence, this study aims to conduct a multilateral investigation into problems arising from applying the indexation system to construction industry and to propose methods for minimization of damage to construction industry on the basis of the derived problems.