A unique concept and sensual interior is required.
Interior construction contract- The assignment of the construction to an interior designer constitutes a work contract under which a contractor agrees to perform the interior construction and the other party (operator of coffee shop) agrees to pay remuneration for the result of such work (Article 664 of the Civil Act).
※ It is important to create a contract when assigning construction for issues such as repairing defects that may arise. In particular, the contract should clearly state the extent to which the construction work is included, and specify the defect liability period.
※ When selecting a contractor for the interior construction, if the construction cost amounts to KRW 10 million or more, it may be beneficial to select a contractor registered as an interior construction business, etc. according to the Framework Act on the Construction Industry in terms of repairing defects (Article 9(1) of the Framework Act on the Construction Industry and Subparagraph 2 of Article 8(1) and attached Table 1 of the Enforcement Decree of the Framework Act on the Construction Industry).
※ An interior constructed by a contractor registered pursuant to the Framework Act on the Construction Industry will benefit from a guaranteed defect liability period of 1 year (Article 28(1) of the Framework Act on the Construction Industry and Article 30 and attached Table 4 of the Enforcement Decree of the Framework Act on the Construction Industry).
Payment of Remuneration- Remuneration (construction payment) must be made at a time that is mutually agreed upon, but where no time has been specified, custom shall prevail. In the absence of any established custom in regards to remuneration period, it has to be paid after the completion of the work that was agreed upon (Article 656(2) and Article 665 of the 「Civil Act」).
· For clear progress, remuneration period should be entered in the contract.
Warranty against defects- Defect liability period
· Where any defect is found in the completed subject matter of a work or in a certain part of the subject matter of a work which has been finished before the completion of all the work, the coffee shop operator who ordered the work may demand the contractor to repair and rectify such defect within a significant period that is specified.
· However, this shall not apply if excessive costs are required for correcting a minor defect (Article 667(1) of the Civil Act).
- A coffee shop operator who has ordered the work may claim compensation in lieu of, or together with, correction of the defect and in such case, he or she may refuse to make payment for the construction until the other party pays compensation for damages (Article 667(2) and Article 536(1) of the Civil Act).
- Claims for the repair of defects and damages shall be available during the period set by the concerned parties to the extent that it does not exceed 1 year from the completion of the construction (Article 670(1) of the 「Civil Act」).
- Exceptions to liability for a warranty against defects
· The liability for a warranty against defects will not be incurred if the defect in the finished subject matter of the work has arisen through the nature of the materials supplied by the coffee shop operator who ordered the work, or by reason of instructions given by such operator. However, the liability for a warranty against defects will arise if the contractor, knowing the impropriety of the materials or instructions, has failed to notify the coffee shop operator (Article 669 of the 「Civil Act」).
Special agreements exempting the liability for a warranty against defects- Even where there was a special agreement between the parties stipulating that the contractor shall not be bound by warranty liabilities, he may not be relieved of liabilities with respect to the defects in workmanship or materials of which he was aware and nevertheless failed to give notice (Article 672 of the Civil Act).