Defect Repair Cost and Home Warranty Deposit, Korea

Defects in the home cause inconvenience to homeowners and loss developer or builder due cost damage reputation. A warranty deposit exists protect consumers from defects. However, it is unclear how much costs repair a defect whether standard for calculating reasonable. This study analyzed litigation details of 290 complexes Korea investigate factors affecting them. According analysis results, was 0.538% construction on average. far below 3% cost, prevailing relevant acts. Additionally, there no case where ratio exceeded 3%. The actual defects considerably lower than stipulated by Act. Therefore, this proposes method adjust collectively means apply differentially according size cost. proposal benefits everyone because protects keeps affordable. In addition, expected that can be used as post-quality improvement. After analyzing found difference implementor purchase order method. system prepares possibility project owner builder, who implementor, becomes insolvent. It depending Nonetheless, insolvency higher builder.