Railroad Corporation Improves 'Service and Procurement' Contract System... Focus on Win-Win with Partners

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Korea Rail Network Authority announced on the 30th that it will revise 11 contract regulations in the service and procurement sectors.

The revised contract regulations focus on establishing a construction culture of coexistence between the Rail Network Authority and its partner companies, including ▲unfair regulatory reforms ▲expanding bidding opportunities for small and medium-sized enterprises (SMEs) and creating jobs ▲strengthening the prevention of safety accidents.

Through this, the Rail Network Authority will first alleviate the industry's burden by removing unfair regulatory elements, such as abolishing the clause that deducted points according to the penalty period even after the expiration of the sanction period for companies restricted from participating in bids, and eliminating penalties for ‘non-submission of evaluation documents and withdrawal from evaluation’ during qualification screening.

In addition, measures to support SMEs and create jobs were prepared to revitalize the economy, which has been contracted due to the novel coronavirus infection (COVID-19).

The Rail Network Authority relaxed the perfect score criteria for credit rating from ‘A-’ to ‘BBB-’ and lowered the perfect score criteria for technician grades from special class to advanced class to expand bidding opportunities for SMEs.

Furthermore, a clause was newly established to grant additional points when technicians with less than five years of experience participate in services, encouraging the creation of youth jobs in the industry.

In particular, the Rail Network Authority strengthened the deduction criteria for companies penalized for safety accidents and poor construction from -3 points to -5 points to prevent safety accidents in advance and expanded the responsibility of partner companies for site management to achieve zero accidents.

Kim Sang-gyun, Director of the Rail Network Authority, said, “Through the revision of contract regulations, we will actively support expanding bidding opportunities for SMEs and increasing youth jobs,” and added, “Above all, the Rail Network Authority will continue to improve the system so that a culture of coexistence with partner companies can be firmly established at construction sites.”

This content was produced with the assistance of AI translation services.