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For the nature of the liability being not defined, many conflicts with a Contractor's liability on a defective work may arise in public works. Public Works is performed according to Government contract act. So, Government Contract Act and regulations are analyzed step by step. Under construction, Contractor have to repair or rework the defective work, have a liability to compensate for damages. And the Authority may cancel or terminate a part or all of the contract. Until accepting a subject of matter, contract privies have the liability and obligation like under construction. After accepting the subject of matter, contractor have a liability to repair it. And it is interpreted that he has to compensate for damages and the Authority can't terminate the contract. These facts result in many complicate legal problems.Therefore to solve or mitigate the problems it is suggested that first, proof liability and starting point of liability have to be decided, second, it is not reasonable for Contractor to repair any part under conflicts. Contractor's liability to compensate for damages have to be started by the time damages occurred. Two types of contractor's liability which is imposed by law and by contract must be unified like Germany.