Kim & Hyun · Main website ↗Real estate & construction한국어

REAL ESTATE & CONSTRUCTION / SEOUL

Construction, building costs and defects

A construction payment dispute often involves more than an unpaid invoice. We examine the agreed scope, variations, progress and defect evidence, and whether assets need to be preserved before judgment.

What needs attention first?

This checklist suggests a review priority, not the likelihood of winning. Answers stay in this page and are not submitted.

Has work been suspended or a termination notice received?
Will another contractor or finishing work cover existing evidence?
Was additional work carried out without a written price confirmation?
Do the parties disagree substantially about progress or defects?
Is the other party transferring property or receivables?

What supports a claim for additional work?

Carrying out extra work and agreeing that it will be paid for separately are different questions. Identify who instructed the variation, what price or calculation method was agreed, and how completion was recorded. Contracts, estimates, messages, meeting minutes, site diaries and invoices should support the same sequence of events.

Will the site change before the evidence is recorded?

Replacement contractors, repairs or finishing work can obscure what was built and why a defect occurred. Preserve original drawings, specifications, photographs, inspection records and the work programme. Whether a pre-action evidence-preservation application or expert assessment is appropriate depends on what must be proved.

Can a successful claim be enforced?

Consider property, bank deposits and receivables that may have enforcement value, including prior-ranking rights. Provisional attachment preserves the prospect of enforcement; it does not itself recover payment. Direct payment of subcontract sums and possessory lien claims each have separate requirements and should not be assumed to apply.

Different records for different parties

Contractors should distinguish the original scope, variations, work completed and unpaid sums. Owners should separate uncompleted work, defects, delay, repair costs and any basis for deduction or set-off. A defect allegation does not automatically remove every payment obligation.

A related matter handled by the firm

In a construction-related damages dispute, the appellate court dismissed the opposing appeal and additional claims. The firm’s case page explains the contractual issues and evidence considered.

Read the case result ↗

Questions clients ask

Does the absence of a written variation end the claim?

Not necessarily. Instructions, agreement, performance, acceptance and pricing records must be considered together.

Must a formal demand precede litigation?

It is not invariably a precondition. A demand can record the content and timing of a payment, termination or repair request.

Can all payment be withheld because of a defect?

The scope of defects, repair costs, unpaid price and any set-off or concurrent obligations require separate assessment.

What happens when you contact us?

  1. Initial consultation. Explain your concern, deadlines and desired outcome.
  2. Document review. We identify the records available and the facts requiring proof.
  3. Strategy and engagement. Confirm the scope, responsible lawyer, initial fee, any applicable success fee and separate expenses before proceeding.
  4. Applications and submissions. Prepare the agreed documents and explain what each seeks to achieve.
  5. Hearings and responses. Review new evidence and the other party’s position as the matter progresses.
  6. Outcome and next steps. Explain the decision, any appeal deadline and whether enforcement or further action is needed.

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Start with the documents and the next deadline.

Tell us whether the immediate concern is the site, assets or an investigation.

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