Daejeon City Conducts 'Special Inspection' on Subcontracting Participation by Local Companies Including I-Park City

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City recently formed a special task force (TF) to conduct a special inspection on the subcontracting order status of local construction companies at large private construction sites within the city, the city announced on the 14th.

The inspection targeted construction sites as of last month with a total floor area of 3,000㎡ or more, construction costs of 15 billion KRW or more, and progress and subcontracting rates below 50%.

The targets included three construction sites: Daejeon I-Park City Phase 1 and 2 new construction (HDC Hyundai Development Company), Daejeon Yuseong Daekwang Rosebiang Apartment new construction (Daekwang Geonyeong), and Daehwa-dong Knowledge Industry Center new construction (Kolon Global).

The planned subcontracting order scale at these sites was 339.8 billion KRW, with 231.7 billion KRW currently ordered. However, the subcontracting orders awarded to local companies amounted to only 101.3 billion KRW (43%).

Accordingly, the city requested cooperation for local company subcontracting participation through visits to the headquarters of construction companies and sending official letters in July, and plans to support local companies to secure as much as possible of the remaining expected order amount (108.1 billion KRW) in the future.

Additionally, to increase the subcontracting ratio of local companies, communication with local construction companies has been increased at the sites, and related associations have been enabled to actively discover and recommend highly competitive member companies.

Lee Hyo-sik, head of the city’s Housing Policy Division, said, “We will make every effort to achieve the target of a 65% local subcontracting rate to revitalize the local economy.”

Meanwhile, the task force previously achieved results by raising the initial subcontracting rate of 44% and order amount of 76.7 billion KRW at the ‘Daejeon Expo Science Complex New Construction Site’ to a subcontracting rate of 49% and order amount of 97.9 billion KRW.

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