Incheon City, Full Effort to Secure Construction Contracts for Local Construction Companies... Mandatory Subcontracting Win-Win Plan Submission

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City is making efforts to increase the construction contract acquisition rate of local construction companies.

The city announced on the 17th that it has prepared and will implement the "Local Construction Industry Revitalization Promotion Plan" in anticipation that while public contracts will increase due to the expansion of the government SOC budget, the overall construction contract amount is expected to decrease due to a decline in housing contracts in the private sector compared to the previous year.

Accordingly, the city plans to expand the joint sales activities (composed of Incheon City, City Council, Construction Association, and related agency permitting departments), which were previously conducted mainly for public and some large private construction projects, to cover all large private construction projects. This includes local materials, labor, equipment, as well as advertising, sales agency, design and supervision, and housing management.

As a key initiative, for private construction projects, the submission of a "Subcontract Win-Win Cooperation Plan" recommending the participation of at least 70% local companies when permits are issued for projects with a total floor area of 5,000㎡ or more or 100 or more housing units will be made mandatory.

Additionally, site-specific local subcontract management cards will be created, and continuous management will be conducted through joint inspections and monitoring with the permitting departments.

Information on the timing of permits will be added to the construction contract issuance data so that small and medium construction companies and construction material companies can use it as basic data for business activities, and it will be posted on the website.

For public construction projects, the city plans to promote mandatory review of splitting and separate contracting for projects not subject to local restrictions, and to mandate full subcontracting to local companies for projects with local restrictions.

Along with this, the city plans to specify the local company participation rate in public notices, promote 100% selection of joint contractors for main contracts, and hold site briefing sessions for local subcontractors.

Lee Jongseon, Director of the Urban Regeneration and Construction Bureau of Incheon City, said, "Incheon is located in the metropolitan area, where competition for contracts is fierce compared to other regions, and the proportion of local companies is low at 4% out of 39% in the metropolitan area. Large construction companies that win contracts in Incheon must find ways to coexist with local companies, and Incheon City plans to provide incentives or penalties depending on the efforts of construction companies."

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