[2021 Asia Construction Awards] Hyundai Engineering & Construction Pays 100% Cash for Construction Fees to Partners

Seoul Mayor's Commendation - Win-Win Cooperation

A Hyundai Construction employee is supplying health masks to subcontractor workers at the DH La Classe apartment construction site in Banpo-dong, Seoul.

Hyundai Engineering & Construction received a commendation from the Mayor of Seoul in the win-win cooperation category at this year’s Asia Construction Awards through various partner support programs including finance, manpower, technology, and welfare, as well as preventive and inspection activities to strengthen the subcontracting transaction compliance system, an internal compliance system.

Hyundai Engineering & Construction, which first entered the overseas construction market in 1965 as the first Korean construction company, has carried out about 800 projects in more than 60 countries worldwide, including the Middle East, Southeast Asia, the Americas, and Africa. Furthermore, by actively entering fields that domestic construction companies had not previously pursued, it has acquired excellent overseas technologies and applied them to domestic sites, playing a significant role in the development of the construction industry.

In 2010, Hyundai Engineering & Construction became the first in the domestic construction industry to secure overseas projects worth over 11 billion USD annually, opening a new era of ‘100 billion USD in overseas project orders by a single company.’ In November 2013, it achieved the milestone of surpassing 100 billion USD in cumulative overseas orders, a first in the Korean construction industry.

Focusing its capabilities early on securing high value-added overseas projects, Hyundai Engineering & Construction created revenue streams abroad. While domestic construction companies showed a biased tendency toward overseas plant projects, Hyundai succeeded in securing various types of overseas projects such as large nuclear power plants, petrochemical facilities, large-scale port construction, and building construction, thereby establishing a stable business portfolio. It has also led the domestic construction industry by strengthening global business capabilities beyond the Middle East to Latin America, Europe, and Africa.

In particular, Hyundai Engineering & Construction has built trust with its partners based on two pillars: ‘compliance with fair trade’ and ‘support for mutual growth,’ operating various win-win growth activities. Since last year, it has been paying 100% of construction payments in cash to partners performing domestic subcontracted work and supports guarantee fees so that partners can secure funds smoothly at the early stages of construction. To support partner companies’ liquidity, it operates the largest win-win growth fund in the industry worth approximately 160 billion KRW, and since 2008, it has held the ‘Partner Company Technology Contest’ to promote the technological advancement of partner companies for the future development of construction technology. Additionally, to enhance partners’ safety management capabilities, it introduced a system of prepaying 50% of safety management costs, enabling partners to meticulously manage site safety from the start, and expanded incentives such as allocating project volumes worth 500 billion KRW to partners with excellent safety management. As a result, it was selected as a ‘Top Grade’ company in the ‘2020 Win-Win Growth Index Evaluation’ announced recently by the Win-Win Growth Committee and was named a ‘Top Grade Honorary Company’ for three consecutive years.

A Hyundai Engineering & Construction official said, "Our various win-win cooperation activities are being recognized externally," adding, "We will continue to take the lead in win-win cooperation by providing support that partners genuinely need through active communication."