Promotion of disclosure of ‘maintenance design amount’ of five power generation companies

When the five power generation companies entrust the power generation maintenance work to an outsourced company, the plan is to disclose the initial order amount (design amount). This is a measure to improve the problem that subcontractors have to accept the down payment set by the contractor without knowing the design amount when multi-level subcontracting is carried out. It is criticized as a measure that effectively tolerates multi-level subcontracting and outsourcing of risks.

On the 10th, according to Kim Kyung-man, a member of the Minjoo Party’s Minjoo Party Committee on the Industry, Trade, Resources and SMEs Committee of the National Assembly on the 10th, the five power generation companies enacted the ‘Standard Plan for Subcontract Management of the Power Generation Maintenance Industry’ on the 3rd. From 2017 to last year, the contract amount for the ordinary maintenance work and planned preventive maintenance work ordered by the five power generation companies was 4.3 trillion won. In this market, 10 large companies including KEPCO KPS and 800 small and medium-sized companies entered the market. Multi-level subcontracting is common.

According to the Framework Act on the Construction Industry, when the amount of the subcontract contract is less than the legal payment ratio, the contractor must manage the subcontract, such as conducting an adequacy review. This is the minimum measure to protect subcontractors when multi-level subcontracting occurs. Accordingly, if the subcontract amount is less than 82% of the contract price of the subcontractor or less than 64% of the design price of the five power generation companies, the 5 power generation companies must review the adequacy of the subcontract contract contents.

The subcontract management standard proposed by the five power generation companies was prepared with the purpose of helping companies that participate in the power generation maintenance market make an appropriate profit. This is to make it mandatory for subcontractors to write standard subcontract designs so that subcontractors can know the design details and design amount of the five power generation companies. Rep. Kim evaluated that “the establishment of the standard has laid the foundation for small and medium-sized partners to be guaranteed an appropriate subcontract price.”

However, the labor community criticizes such measures as effectively neglecting the outsourcing of risk. Lee Tae-seong, secretary of the All Power Generation Contingent Workers’ Meeting, said, “The announcement of this standard by the five power generation companies comes from the purpose of expanding the maintenance work of power plants to the private sector. there,” he asserted.

Leave a Reply

Your email address will not be published. Required fields are marked *