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Construction payment lawsuits in Busan start with the 3-year limit
Under Civil Act, Article 163, item 3, a construction payment claim expires if not exercised for 3 years, so long nonpayment calls for a payment order or lawsuit to stop the clock. In extra work and defect disputes, the contract, agreed design changes, and progress records decide the outcome.
Construction payment gets hard to collect after 3 years
Construction disputes come from the gap between the contract, the actual work, and changes or extra work. Matching the drawings, specifications, and progress records shows where the responsibility lies.
Redevelopment and reconstruction involve the association, the contractor, and the administrative agency, so civil and administrative lawsuits must be looked at together, and the deadlines are tight. A Law Firm Yulmaru attorney handles the case personally from the start.
To consult in Changwon or Seoul: Changwon Office · Seoul Office
How your case proceeds
Organize documents
Collect contracts, progress records, and payment records by date
Secure payment
Freeze assets by provisional attachment or a claim to create a mortgage
Lawsuit and appraisal
Fix the scope of work and defects by appraisal
Compulsory execution
Seize the other side's assets with the judgment
Deadlines to know
| Item | Period |
|---|---|
| Prescription of a construction payment claim | 3 years |
| Contractor's warranty liability (general) | 1 year from the date the work was delivered |
| Warranty for structures such as land and buildings | 5 years after delivery; 10 years for stone, lime, brick, metal, and similar structures |
| Defect warranty of a construction contractor | 10 years for structural strength; otherwise a period by type of work within 5 years |
| Objection to a payment order | 2 weeks from the date of service |
Basis: Civil Act, Article 163, item 3, Articles 670 and 671; Framework Act on the Construction Industry, Article 28; Civil Procedure Act, Article 470
Construction Frequently Asked Questions
QBefore suing, can a busan construction payment lawyer freeze the building owner's assets?
Yes, by provisional attachment and a claim to create a mortgage. A contractor for work on real estate can demand a mortgage on that property to secure the construction payment claim (Civil Act, Article 666), and for the owner's other assets or bank deposits, we apply for provisional attachment (Civil Execution Act, Article 276). Provisional attachment and filing suit interrupt prescription (Civil Act, Article 168), so when the 3-year limit is near, we consider both together.
QI was receiving progress payments when the owner halted the work midway. Can I get paid for what I did?
The ordering party may cancel the contract before the work is completed by compensating the loss (Civil Act, Article 673), so stopping the halt itself is difficult, but you claim payment for the part completed so far and the loss caused by the halt. Photos showing the progress rate, progress records, and material purchase records are the core evidence, so secure dated records before leaving the site.
QTwo years after completion, the owner says there are defects and wants money back. Am I liable?
Defect warranty claims must be made from the date of delivery within 1 year for general work, 5 years for land and buildings, and 10 years for stone, brick, metal, and similar structures (Civil Act, Articles 670 and 671), and for construction work the Framework Act on the Construction Industry sets separate periods by type of work (Article 28). If the contract set its own defect repair period and scope, we look at that agreement first and match the delivery date against the date of the defect notice.
QThe owner wants to deduct liquidated damages for delay. Do I have to accept all of it?
Liquidated damages for delay are a pre-estimate of damages, calculated by multiplying the days of delay by a rate when the contract provides for it (Civil Act, Article 398). Periods of delay not caused by the contractor, such as design changes, late documents from the owner, or natural disasters, must be excluded, and if the amount is unreasonably excessive the court can reduce it (the same Article, paragraph 2). Records of the causes of delay by date decide the dispute.
QThe construction site is in Gimhae. Which court do I sue in?
A money claim such as construction payment can also be filed with the court for the creditor's address, which is the place of performance (Civil Procedure Act, Article 8; Civil Act, Article 467(2)), so a company with its place of business in Busan can file in the Busan District Court. The court for the defendant's address is also possible (Civil Procedure Act, Articles 2 and 3), and if the contract has a jurisdiction agreement, that court takes priority (the same Act, Article 29).
QI am a subcontractor and the main contractor went bankrupt. Can I get paid directly by the ordering party?
Yes. If the principal contractor cannot pay subcontract payment because of suspension of payments, bankruptcy, or similar reasons, or has failed to pay 2 or more installments, the subcontractor can ask the ordering party for direct payment (Fair Transactions in Subcontracting Act, Article 14). Make the request in writing with proof of delivery, and check whether the ordering party has already paid any amount to the principal contractor.