DL E&C Achieved Grade AA in Fair Trade Evaluation
DATE 2024.12.13
VIEW 520
DL E&C Achieved Grade AA in Fair Trade Evaluation
Mr. Seunghoon Hong, Compliance RM office, DL E&C (Right) is receiving the evaluation certificate from Mr. Gijeong Han,
the President of Fair Trade Commission, during the ‘CP’ Forum held by Fair Trade Commission on the 12th.
the President of Fair Trade Commission, during the ‘CP’ Forum held by Fair Trade Commission on the 12th.
-Introduced as a ‘best case’ during a Fair Trade Commission Forum … Analyzes ‘risks’ based on accumulated data.
-2,700 job orders ‘digitalized,’ … now eligible for the ‘incentive benefits’ as a result of the revision of the Fair Trade Act.
On the 13th, DL E&C announced that it achieved an AA Grade, which is a mark of excellence, in the 2024 Fair Trade Compliance Program Grading announced by the Fair Trade Mediation Agency, an affiliate organization of the Fair Trade Commission, on the 12th. The Grade Certificate Awarding Ceremony, held at the Korea Chamber of Commerce in Jung-gu, Seoul, was attended by Mr. Seunghoon Hong, the Compliance RM Officer of DL E&C and President Gijeong Han of the Fair Trade Commission, etc. DL E&C was also introduced as the best case of compliance management during the event.
The CP (Compliance Program) is a compliance monitoring program voluntarily introduced and implemented by businesses to uphold business ethics. The grades are endowed based on the evaluation of the business' compliance policy and effective management of risks, etc. Construction businesses depend more on subcontractors and supplies since many different types of construction services are involved in a project. Various illegal activities and non-compliances, such as sub-standard construction or delays in the wages of workers, are, in many cases, attributable to unfair sub-contracting practices. To address these issues, it is essential to develop compliance capabilities. Since the introduction of its CP in 2006, DL E&C has been engaged in the development of compliance risk evaluation indicators and digitalized all job orders. These practices were recognized as best practices and earned the company high recognition.
Mr. Seonghwan Woo, Compliance RM Team Leader, DL E&C, is giving a presentation on the best cases of compliance during the ‘CP Forum’ held by the Fair Trade Commission on the 12th.
DL E&C manages the factors that could lead to unfair contracting or those that hinder fairness in projects using its ‘DIC index’ (delayed document issuance, incomplete document issuance, or unfair payment). Based on the big data accumulated from the field, the key point of this program is to detect potential risks in advance and prevent them. This index, developed by DL E&C last year, is composed of three grades based on the analysis of the unfair contracting practices such as delay issues, incomplete issues, and unsuitable payment execution, in addition to the cost rate, progress rate, and other progress of construction projects. As a result, they are designating the Grade 1 and 2 construction project sites where there are higher compliance risks and focus their management efforts on them.
DL E&C fully digitalized their job orders, as well. To eradicate one of the most common unfair practices, which is not issuing documents, they introduced the ‘Job Order Online Issuance System’ in 2022. The number of online job orders issued for the past couple of years is as many as 2654. Job orders are saved in a secure serve and accessible in real-time. They also solved the main cause of disputes, such as non-payment, which is not issuing the document. Until now, they relied on paper documents at construction sites. They customarily skipped issuing documents or gave their job orders orally, which has been criticized over the years. With this new system, there is no chance of delaying issuances or missing document issuance at all.
The amendment of the Fair Trade Act took effect in June to give incentives for businesses with robust CP operations. As the first-ever legal basis has been established, DL E&C is now eligible for reduction of penalties or exemption of direct investigations, along with other incentives.
Mr. Seunghoon Hong, the Compliance RM Officer of DL E&C, said, “This certification is a result of recognition of our commitment and efforts for compliance to detect and prevent risks.” He added, “We will continue the basis for sustainable growth by expanding the compliance culture that could be trusted by employees and stakeholders.”
