A. The Plaintiff: (a) awarded a successful contract for the construction of the sewage culvert in Yangsan City; and (b) concluded a contract on May 30, 2014 with the date of completion on June 1, 2017, by setting the contract for the construction of the instant construction project, as the contract price of KRW 1,982,660,000, the starting date; and (c) the date of completion on June 3, 2014.

B. On October 1, 2014, the Plaintiff entered into a subcontract with the Defendant regarding water supply and drainage works during the instant construction works (hereinafter “instant subcontract”).

C. The instant construction project, as a long-term continuing construction period, determined the total amount of construction share during which both the Plaintiff and the Defendant concluded a modified contract from around 2014 to around 2016, and accordingly, concluded a modified contract with the Plaintiff.

According to the instant subcontract, the construction of a water supply and sewerage culvert with a total length of 2,980 meters and the Defendant excavated the road in depth at 1.5m to 3.78m and the width of 1.41m to 3.78m in accordance with the design drawing, and installed a water supply and sewerage culvert in order to protect the pipes, and then breaking a sand around the pipe in order to protect the pipes.

E. The Defendant completed the construction work in December 2016, and the Plaintiff completed the completion inspection from Gyeyang-si on December 26, 2016, and the Yangsan-si paid the subcontract price to the Defendant according to the direct payment agreement on the subcontract price.

F. On June 2017, Gyeongnam-do performed an audit of the instant construction works on the first police officer, and determined that the said works were not properly executed, even though sand should be removed from the pipe around the pipe after the installation of the water supply and sewerage culvert, and that the said works were not properly executed, even though sand should be removed from the pipe around the pipe.

G. Around June 15, 2017, the Yangsan market notified the Plaintiff of recovering KRW 93,837,000 in relation to the instant construction cost, according to the above audit results, and the Plaintiff around July 10, 2017.