Improvement in Local Company Contract Rate for Construction Projects Ordered by Incheon City... Prime Contract Rate at 95.9%

32.4% Increase Year-on-Year... Joint Sales and Subcontracting Inspections Effective
Primary Contract Rate of 28.8% in 6 National Public Enterprises... Decrease Compared to Previous Year

Incheon International Airport Construction Site [Asia Economy DB]

[Asia Economy Reporter Park Hyesook] The local contract award rate for public sector construction projects in the Incheon area has improved.

According to Incheon City on the 16th, an analysis of the 'local contractor award performance' for construction projects ordered by the city and its affiliated organizations in the first half of this year showed that the local primary contractor rate was 95.9%, an increase of 32.4% compared to the same period last year.

This far exceeds the target rate (49%) set by the 'Ordinance on the Promotion of the Activation of the Local Construction Industry and the Protection of Subcontractors in Incheon City.'

The total construction amount ordered by Incheon City and its affiliated organizations was 361.8 billion KRW, a 21.2% decrease compared to last year (459.4 billion KRW), but the awarded amount increased by 18.9% to 347.1 billion KRW.

Along with the increase in the local primary contractor rate, the local subcontractor rate also rose by 17.1% compared to the same period last year to 68.1%. The usage rates of local materials, local workforce participation, and local equipment were 72.1%, 92.8%, and 96.3%, respectively, all significantly exceeding Incheon City's target rate of 70%.

The city analyzed that the focused efforts to expand local company participation?such as continuous joint sales activities targeting large construction sites, subcontracting status inspections, and signing win-win agreements?were effective.

Meanwhile, the total construction amount ordered by six national public enterprises located in Incheon was 332.2 billion KRW, an 11.3% increase compared to last year, but the awarded amount decreased by 52.9% to 95.8 billion KRW. The local primary contractor rate was 28.8%, down 39.4% from last year, while the subcontractor rate rose 17.7% to 51.4%.

The low local primary contractor rate for national public enterprises is understood to be due to the small number of projects subject to local restrictions and mandatory local joint contracts (under 24.4 billion KRW) resulting from large-scale project orders.

The survey targets for this local contractor award performance included 1,985 primary and subcontracted construction projects ordered by Incheon City and its affiliated organizations, and 129 primary and subcontracted construction projects ordered by six national public enterprises including Incheon International Airport Corporation, Incheon Port Authority, and Korea Land and Housing Corporation (LH) Incheon Headquarters.

The total construction amount was 694 billion KRW, including major projects such as the Geomdan Residential Land Development Project, Incheon Airport Phase 4 T2 Expansion Project, and Jangbongdo Local Water Supply Facility Project.

An Incheon City official stated, "Through the Local Construction Industry Activation Promotion Committee and others, we will request cooperation to increase the local award rate in large-scale construction projects by national public enterprises that are not subject to local restrictions, and we will also strive to improve the award rate of Incheon local construction companies in private construction projects through joint sales activities."

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