Expansion of Electronic Bidding for Apartment Complexes... Lowering Entry Barriers for New Businesses

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The electronic bidding system will be expanded when selecting contractors for construction and other projects in apartment complexes and other multi-family housing. Additionally, the entry barriers for new contractors will be lowered, enhancing the transparency of management fee execution.

The Ministry of Land, Infrastructure and Transport announced on the 12th that it will publicly notify the amendment to the "Guidelines for Selecting Housing Management Companies and Contractors" from the 13th until the 2nd of next month. The amendment is expected to be implemented as early as January next year.

According to the amendment, to increase the transparency of the bidding process for multi-family housing contractors, the application of electronic bidding through the Multi-family Housing Management Information System (K-apt) will be expanded from the current lowest bid winning method to include the qualification review method.

Considering criticisms that the performance criteria required in multi-family housing bids block new contractors from entering and encourage collusion among existing contractors, the recognition period for business performance in restricted competitive bidding will be extended from 3 years to 5 years, and the upper limit for performance criteria in the qualification review system will be reduced from a maximum of 10 cases to 5 cases.

The restrictions on bidding eligibility will be expanded from "those who provided bribes related to the bid" to "those who provided or promised bribes," and a clause has been added allowing the selection of the second-highest bidder if the winning bidder fails to contract, invalidating the bid.

Kim Kyung-heon, Director of the Housing Construction Supply Division at the Ministry of Land, Infrastructure and Transport, said, "This system improvement will enable the selection of contractors for multi-family housing to be more fair and transparent," adding, "We will continue to strive to ensure that multi-family housing management meets the expectations of the public."

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