Daejeon Area Private Construction Subcontracting Rate 66% 'Exceeds Target'

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City announced on the 2nd that the regional subcontracting participation rate for large-scale private construction sites in the region in the third quarter of this year recorded 66%, exceeding the initial target of 65%.

The city recently surveyed the subcontracting participation status of local companies at 50 private construction sites with a total floor area of over 3,000㎡ currently under construction in the region. It was confirmed that out of the total subcontracting order amount of 1.7531 trillion KRW for large-scale private construction sites, 1.1597 trillion KRW was awarded to local subcontractors.

Among the 50 sites under management, 43 sites (86%) achieved the excellent performance of meeting the regional subcontracting rate target of 65% or higher in the third quarter, while 7 sites accounted for 14% as underperforming sites.

Also, the average subcontracting participation rate of local companies by non-local construction firms was 61%, whereas the average subcontracting participation rate of local companies by local construction firms was 78%, showing that local firms had a higher rate than non-local firms.

In the third quarter, large-scale construction projects such as Doan Hillstate commenced, increasing the number of new construction sites by 7 compared to the second quarter, but the number of completed sites also increased by 5.

Lee Hyo-sik, Director of the Housing Policy Division of the city, said, “It is true that the local construction market has become difficult due to COVID-19, but we will make further efforts to achieve the target rate. We will do our best to revitalize the local construction industry by preparing various support measures, including proactive administration from the early stages and special management of underperforming sites.”

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