[2022 Asia Construction Awards] Hyundai Engineering & Construction, Full Cash Payment for Construction Fees and Operation of Win-Win Growth Fund

Seoul Special Mayor's Award - Win-Win Cooperation Category

[Asia Economy Reporter Hwang Seoyul] Hyundai Engineering & Construction, which received the Seoul Metropolitan Mayor's Award in the win-win cooperation category, is promoting a win-win growth strategy centered on two pillars: ‘support for mutual growth’ and ‘compliance with fair trade,’ aiming to grow together with its partner companies. To this end, it has established and operates the H-TOGETHER program, a sustainable win-win growth system covering five areas: ▲win-win cooperation ▲safety ▲quality ▲transparency ▲new technology.

To foster mutual growth with its partners, Hyundai Engineering & Construction has been paying the full amount of construction payments in cash to subcontractors performing domestic subcontracted work since last year, and provides funds early in the construction process to help partners carry out work smoothly. In addition, through collaboration with the top domestic financial institutions, it has created and operates a win-win growth fund of 160 billion KRW, the largest in the industry, to support the liquidity of partner companies.

In the safety sector, to enhance the safety management capabilities of partner companies, a system of 50% advance payment of safety management costs has been introduced, enabling partners to meticulously manage safety from the early stages of the site. Incentive programs have been expanded, such as allocating orders worth 1 trillion KRW to safety-excellent partners and providing Naver Pay points proportional to the number of working days to workers who achieve zero accidents. By supporting safety consulting through specialized institutions for both the headquarters and sites of partner companies, Hyundai Engineering & Construction aims to fundamentally improve the safety management level of its partners.

In July, executives and employees of Hyundai Engineering & Construction's outstanding partner companies toured the Tuas Finger 3 reclamation project site in Singapore. Photo by Hyundai Engineering & Construction

Furthermore, as the first in the construction industry, it has shifted the entire quality management process from analog to digital methods, aiming for proactive quality defect management and preemptive quality issue resolution. Since 2021, it has been conducting real-time site inspections through the mobile-based smart integrated inspection system ‘Q-Pocket’.

To establish a fair trade culture with partner companies, it conducts transparent ethics education and ethical practice pledges annually with about 900 partner companies. It also actively supports the development of smart construction technologies. Since 2008, it has held an annual partner company ‘Technology Contest’ to discover excellent technologies and has supported technology development with an annual budget of 1 billion KRW. Additionally, it supports partner companies in building smart construction equipment and automated factories.

Based on these efforts, Hyundai Engineering & Construction received the highest grade for four consecutive years in the ‘2021 Win-Win Growth Index Evaluation’ announced by the Win-Win Growth Committee. As a result, it was selected as an excellent honorary company, which requires receiving the ‘highest’ grade for three consecutive years or more. The Win-Win Growth Index Evaluation, started in 2011, is a quantitative indicator that evaluates the level of win-win growth between large corporations and small and medium enterprises among about 200 domestic large corporations, promoted by the Win-Win Growth Committee to encourage mutual growth, and is announced in five grades: ‘highest,’ ‘excellent,’ ‘good,’ ‘average,’ and ‘insufficient.’