Exemption from New Technology and Product Performance Evaluation... Simplified Insurance and Lease Review

Ministry of Economy and Finance to Discuss '2nd Contract System Innovation TF' on 30th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] From now on, products in new technologies and new industries will be excluded from performance evaluation when contracts are concluded through negotiation.

On the 30th, the Ministry of Economy and Finance announced that it had identified seven priority tasks that can be promoted through contract regulations without revising laws during the 2nd Contract System Innovation Task Force (TF) discussion. The contract system innovation TF set three major goals: enhancing system flexibility and efficiency, establishing a fair contract culture, and supporting the entry of innovative and new industries into the procurement market.

For bids such as insurance and lease contracts subject to strict approval and supervision procedures by financial authorities, credibility evaluation will be simplified. A differential scoring system will be introduced so that companies with excellent technological capabilities can be selected as successful bidders.

For construction contracts, the ordering agency’s construction documents will also include the "basis for calculating the construction period." In addition, when special clauses extending the defect liability period are set, the extension period will be capped after consultation with the contractor.

The surcharge system on various guarantees such as bid and contract deposits for contractors with a history of unfair sanctions will be abolished. Also, the scope of the contractor’s responsibility will be relaxed from full responsibility to ordinary management responsibility.

Meanwhile, the government plans to promptly start improvements by preparing specific contract regulation amendment proposals. Furthermore, it plans to establish contract system innovation measures by September through relay meetings by industry and organizations, expert meetings, and on-site visits.

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