"We Don't Take on Excessive Orders"... This Company Endures Without Illegal Resubcontracting, Earning 7-8 Billion Won Annually [Construction Crisis Report]

Model Case on Site
Ewha Industrial's Perseverance as a Waterproofing Specialist
Unlike Illegal Resubcontracting to Execution Directors,
Direct Management of All Processes Earns Recognition for Quality

"If you resort to illegal subcontracting structures, you cannot guarantee either quality or safety."

Ewha Industrial is continuing its construction projects in a manner rarely seen at construction sites, where illegal subcontracting and wage arrears are rampant. The company, which is composed mainly of skilled workers who have worked together as a team for over 10 years, has adhered to the principle of "only taking on as much work as we can handle." Kwangkeun Oh, Vice President of Ewha Industrial, stated, "To maintain a direct management system, we cannot take on orders that exceed our management capacity."

Ewha Industrial specializes in waterproofing construction. The company operates 15 sites nationwide, with each site managed by a team of around 7 to 10 people. Its annual order volume is between 7 billion and 8 billion won. While this scale is smaller compared to major specialty construction firms that operate at the 20 billion to 30 billion won level, Ewha Industrial is cited as a "model case" among industry insiders for its commitment to site responsibility and quality management until the very end. The company collaborates with major construction firms such as Samsung C&T, Hyundai Engineering & Construction, and DL E&C, and has been selected as an "excellent partner" for four consecutive years in safety and other assessments by Hyundai Engineering & Construction.

One of the causes of faulty construction is illegal subcontracting. The main contractor does not manage the construction directly but instead delegates the work to so-called "execution directors" at each site, who then further divide and subcontract the work. However, Vice President Oh explained, "Since we have maintained a direct management system without execution directors from the beginning, we are able to check the quality of each and every process."

Kwangkeun Oh, Vice President of Ewha Industrial

Most of the on-site workforce consists of skilled workers who have worked for more than 10 years. These skilled workers are not just manual laborers; they play a key role in determining the placement of materials and the sequence of tasks, thereby influencing the productivity and quality of the site. Ewha Industrial is one of the few companies where such workers form teams and take responsibility for the site, allowing clients to entrust projects without the need for separate supervision.

There are even workers with 40 years of experience who started in their twenties. While many team members are in their fifties and sixties, new skilled workers are paired with assistants to work together and pass on their skills. Vice President Oh said, "We observe new workers for about a week, and if their work results do not meet our quality standards, we do not employ them. Because a single mistake can affect the overall quality and safety of the site, we do not deploy unverified personnel."

Vice President Oh particularly emphasized the importance of the site manager's role at specialty construction companies. He stated that the "technical skills" and "judgment" of the site manager determine the quality of a construction site. On-site, it is common for subsequent processes to begin before preceding ones are completed, resulting in abnormal construction sequences. Identifying and coordinating these issues depends on the site manager's understanding of construction processes and experience. He explained, "The process should flow in the order of 1 to 2 to 3, but in reality, it often goes 1 to 3 to 2. If the site manager does not grasp the flow and make adjustments each time, it leads to poor construction."

The technical skills of the site manager also translate into leadership on site. Yonghak Kim, President of the Korea Construction Site Skilled Workers Association, said, "A site manager at a specialty construction company must be able to immediately point out and instruct corrections when skilled workers make mistakes for the process to proceed properly. If the site manager does not fully understand the construction process, skilled workers can notice this and may become negligent in their work."

Order of Articles in the 'Construction Crisis Report' Series

<1-1> Construction Sites at a Standstill, Daily Workers' Lives Collapsing
<1-2> "Three to Four More Bankruptcies"... Midsize Builders Facing Restructuring
<2-1> PF, Once a Lifeline, Now a Trap
<2-2> Easing Multi-Home Regulations, Key to Local Real Estate Recovery
<3-1> "Every Day Is Nerve-Wracking": Shaken Subcontractors and Downstream Industries
<3-2> Even Major Firms Cannot Avoid Wage Arrears
<3-3> LH and Local Governments Also Facing Wage Arrears 
<3-4> Even the President Stepped In... Urgent Need for Vertical Structure Reform
<3-5> This Company Survives Without Illegal Resubcontracting
<3-6> Joining Hands at Collapsed Sites
<4-1> Foreign Construction Workers Encroaching on Domestic Jobs
<4-2> From 'Regulating Foreigners' to 'Protecting Domestic Workers'
<4-3> The Root Cause of Deteriorating Profitability: Frequent Rework