What is the "Act on the Prevention of Frauds and Other Practices Relating to Subcontracting of Specified Businesses" (取适法)?

The Act, revised from the former Subcontract Act, aims to regulate unfair transactions by client companies that exploit their superior position when dealing with subcontractors. It mandates clear written terms for transactions and prohibits unilateral price determination by clients, supporting subcontractors in achieving price pass-through.

When was the Act enforced?

The Act was enforced on January 1, 2026.

What were the main findings of the survey conducted three months after the Act's enforcement?

The survey found that while over 40% of subcontractors experienced increased price negotiations, 60% did not. Key challenges for subcontractors included not having contracts readily available, leading to hesitation in negotiations. For clients, identifying eligible subcontractors was a major hurdle.

What is considered important for promoting price negotiations according to the survey?

Over 60% of respondents identified "ensuring access to contracts and purchase orders" as the most important factor for promoting price negotiations.

What challenges do client companies face in complying with the Act?

Approximately 60% of client companies reported difficulties in identifying which businesses fall under the Act's scope, with the primary reason being the need to individually collect company information.

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Sansan 调查：施行三个月后《承揽法》的实际运行状况

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常見問題

Q: What is the "Act on the Prevention of Frauds and Other Practices Relating to Subcontracting of Specified Businesses" (取适法)?: A: The Act, revised from the former Subcontract Act, aims to regulate unfair transactions by client companies that exploit their superior position when dealing with subcontractors. It mandates clear written terms for transactions and prohibits unilateral price determination by clients, supporting subcontractors in achieving price pass-through.
Q: When was the Act enforced?: A: The Act was enforced on January 1, 2026.
Q: What were the main findings of the survey conducted three months after the Act's enforcement?: A: The survey found that while over 40% of subcontractors experienced increased price negotiations, 60% did not. Key challenges for subcontractors included not having contracts readily available, leading to hesitation in negotiations. For clients, identifying eligible subcontractors was a major hurdle.
Q: What is considered important for promoting price negotiations according to the survey?: A: Over 60% of respondents identified "ensuring access to contracts and purchase orders" as the most important factor for promoting price negotiations.
Q: What challenges do client companies face in complying with the Act?: A: Approximately 60% of client companies reported difficulties in identifying which businesses fall under the Act's scope, with the primary reason being the need to individually collect company information.