Reason for proposal and main contents

The current law prohibits principal contractors from setting a special contract that unfairly infringes or restricts the profits of subcontractors by such methods as having subcontractors bear the costs to be borne by the original contractor. However, even when such unfair special agreements exist, as subcontractors have to bear responsibility under such contracts until their invalidity is judged after bringing a civil lawsuit, it remains difficult to protect the practical rights of subcontractors.

Therefore, the proposed revision aims to prevent violations and offer greater protection for the rights of subcontractors by removing the reasons for setting special agreements from principal contractors by the method that, in the case of unfair special agreements in subcontracts, only corresponding parts become null and void (Newly established Article 3 (4) 3 of the draft).