Labor Ministry activates heatwave guidelines... outdoor work halted at 38 degrees

As heatwave warnings continue across the country, the Ministry of Employment and Labor's 'Guidelines for the Prevention of Heat-related Illnesses' have gone into full effect, requiring construction sites to halt work when perceived temperatures exceed 38 degrees. The Ministry has implemented the new heatwave guidelines since May of this year. Accordingly, when the perceived temperature is 35 degrees or higher, outdoor work must be reduced and breaks provided between 2:00 PM and 5:00 PM. If a serious heatwave warning (perceived temperature of 38 degrees or higher) is issued, all outdoor work must be completely suspended, with the exception of emergency safety measures.

According to the Korea Construction Industry Institute and others, the completion rate for major redevelopment and reconstruction projects in the Seoul metropolitan area in July was estimated to be an average of 8 to 12 percentage points lower than originally planned. This impact is attributed to a reduction in the number of workdays at sites due to the increase in heatwave advisories.

Labor unions and contractors are seeing rising legal and financial conflicts over liquidated damages and the recognition of force majeure regarding schedule delays caused by the heatwave. Under current standard construction contracts, contractors must pay liquidated damages to associations for delays attributed to them; however, disputes are anticipated over whether heatwaves should be recognized as force majeure.

The Korea Construction Policy Institute diagnosed that if schedule extensions due to heatwaves are added to the aftermath of rising material and labor costs, there will be significant risks of housing supply shortages and rising sale prices.