Hyundai Construction Implements 'Performance Sharing VE Compensation System' Based on Partner Proposals

[Financial News] Hyundai Construction announced on the 29th that it has officially adopted the 'Performance Sharing VE (Value Engineering) Compensation System', which accepts technical proposals from partners and shares the results, for the first time in the industry.
This system compensates 50% of the cost savings achieved through quality innovation and process improvement based on design, procurement, and construction VE ideas proposed by partners. Hyundai Construction is the first among domestic construction companies to officially adopt this type of performance compensation system.
The Performance Sharing VE Compensation System operates according to a standard procedure consisting of a total of 7 stages. Partner proposals undergo a first feasibility review and a second effectiveness evaluation, followed by the submission of a VE proposal, contract modification, construction execution, and performance settlement. The system is characterized by an evaluation framework focused on the quality, safety, effectiveness, and feasibility of the proposals.
Hyundai Construction plans to first apply this system to domestic and international material and subcontract contracts in the civil engineering, new energy, and plant business divisions, and will consider expanding its application to the architecture and housing business divisions in the future.
A Hyundai Construction representative stated, "This system establishes a structure that connects partner proposals to tangible rewards," and added, "We plan to continue enhancing the technology-based cooperation system."
Meanwhile, Hyundai Construction opened the 'Partner Excellent Technology Proposal Center' last March to discover the technical capabilities of partners and expand field application. Over 150 technologies have been submitted in the four months since its opening, and the proposed excellent technologies are leading to improvements in quality and process efficiency. In addition, various win-win programs such as the Co-growth Fund, Technology Expo, and Safety Guide System are being operated.

en1302@fnnews.com Jang In-seo Reporter