Ministry of Land, Infrastructure and Transport to Protect Small Businesses and Reduce Client Burden Following Abolition of Construction Industry Sector Regulations

Administrative Notice of the Amendment to the 'Detailed Standards for Construction Project Orders' Until the 7th of Next Month

[Asia Economy Reporter Kangwook Cho] The Ministry of Land, Infrastructure and Transport announced on the 28th that it has prepared a revision of the 'Detailed Standards for Construction Project Ordering' to resolve on-site difficulties faced by small-scale companies and project owners following the abolition of construction industry sector regulations, and will conduct an administrative notice from the 29th of this month to the 7th of next month.

This revision was prepared through consultations with related industries and project owners to protect small-scale companies and reduce the burden on project owners.

First, incidental works that are not the main construction work will not be listed in the bid announcement, and to protect small-scale companies, for small-scale projects under 200 million KRW, project owners will review the similarity with previous projects and maintain the classification between general and specialized construction works.

For specialized construction works that are effectively under 200 million KRW due to a high proportion of government-supplied materials, it is advised to consider allowing bids only from those who have registered for the respective project.

The procedures and methods for verifying capital will also be simplified. When specialized construction businesses participate in general construction projects, to reduce the burden on project owners to verify whether the general construction business meets the capital requirements, if the sum of the capital of the specialized construction business’s held categories meets or exceeds the capital standard for general construction businesses, capital verification can be done through a confirmation letter from the relevant association.

Additionally, the validity period of the Financial Management Status Diagnosis Report used to verify the capital adequacy of general construction businesses will be clearly stipulated as one year.

The Ministry of Land, Infrastructure and Transport plans to hold an online meeting for public project owners while promoting the revision of the 'Detailed Standards for Construction Project Ordering,' urging them to consider the purpose of abolishing sector regulations when ordering projects and to comply with the criteria for incidental works under the Construction Industry Basic Act.

Park Jinhong, head of the Fair Construction Promotion Team at the Ministry, said, “Even next year, when the system for large categories of specialized construction businesses and main field systems is introduced, we will closely monitor changes in the construction industry to continuously promote system improvements, and do our best to ensure that construction industry innovation measures are established on-site through communication and feedback with stakeholders such as the construction industry and project owners.”

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