Ministry of Land, Infrastructure and Transport Launches Pilot Project for Major Industry Classification of Specialized Construction Sectors

Preparation Begins for Next Year's Construction Industry Sector Restructuring Implementation

[Asia Economy Reporter Jo Gang-wook] The 'Pilot Project for the Large Industry Classification of Specialized Construction Businesses,' which allows specialized construction companies to win construction contracts based on large industry categories, is set to be actively promoted.

The Ministry of Land, Infrastructure and Transport announced on the 8th that it has selected 22 pilot project targets based on applications from ordering agencies and will begin ordering as early as the third week of this month.

By ordering agency, there are a total of 22 projects: 10 from the Land Management Office, 6 from the Expressway Corporation, 2 from the Railroad Authority, 2 from the Railroad Corporation, and 2 from the Airport Corporation. The construction work includes intersection improvements, parking lot expansions, road maintenance, reinforcement of rest facilities, and installation of soundproof walls.

The large industry classification of specialized construction businesses integrates the current 28 specialized construction categories, excluding facility maintenance, into 14 categories. Legal grounds were established through the revision of the 'Enforcement Decree of the Construction Industry Basic Act' on December 29 last year. It is scheduled to be applied gradually to public construction projects next year and private construction projects in 2023.

Once the large industry classification is applied, specialized construction companies will have a broader scope of work by category, enabling smoother entry into comprehensive projects that combine multiple construction types. Accordingly, the Ministry of Land, Infrastructure and Transport expects a competitive structure based on construction capability to be established, moving away from the original subcontracting relationship between general and specialized construction companies.

This pilot project targets projects under the Ministry of Land, Infrastructure and Transport's Land Management Office and affiliated public institutions that can be ordered within the first half of the year. To analyze the effects of the large industry classification from various angles, it consists of three types: ▲ ordering comprehensive projects separated into multiple specialized large industries (10 projects), ▲ ordering comprehensive projects as specialized projects of one specialized large industry (4 projects), and ▲ expanding the participation target of specialized projects from one specialized industry to a specialized large industry (8 projects).

In the pilot project, ordering agencies will present bidding qualifications based on the 14 specialized large industries, and existing specialized construction companies will participate in bidding with performance corresponding to the large industry category.

The Ministry of Land, Infrastructure and Transport plans to thoroughly inspect detailed ordering standards, bidder selection criteria, and procurement systems through the pilot project to ensure the smooth application of the large industry classification of specialized construction businesses at construction sites starting next year. It will also promote related institutional improvements through consultations with relevant organizations. Furthermore, based on the monitoring results of this pilot project, a second pilot project will be pursued to apply additional institutional improvements such as introducing core fields if necessary.

A Ministry of Land, Infrastructure and Transport official said, "We will closely monitor each stage of the pilot project, including ordering, bidding, and contracting, to prepare institutional improvements such as detailed ordering standards, and support construction businesses institutionally so that they can adapt well to the changing market."

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