Improvement of Local Contract Regulations... Easing the Burden on Bidding Companies

Abolition of Advance Payment Usage Statement Submission Obligation, etc.

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[Asia Economy Reporter Kiho Sung] The local government contract system will be improved with a focus on bidders by enhancing burdensome regulations for companies and eradicating unfair practices that occur during the contract process.

The Ministry of the Interior and Safety announced on the 25th that it has prepared amendments to the "Standards for Local Government Bidding and Contract Execution" and the "Criteria for Determining Successful Bidders in Local Government Bidding," which will be implemented starting January 1 of next year.

First, the local contract system will be improved to enhance fairness and equity in contracts by eliminating regulatory elements and unfair practices that burden contractors. Specifically, ▲the obligation for contractors to submit statements of advance payment usage will be abolished, ▲a new regulation prohibiting mid-term termination of contracts when extending the construction period for long-term continuous projects will be introduced, ▲and the evaluation criteria for the business status of academic research service contracts will be unified.

In addition, the complex local contract regulations system will be completely reorganized. Accordingly, seven regulations will be consolidated into two, and overlapping provisions and forms for contract objects (construction, services, goods) will be extensively revised and simplified.

Choi Byung-kwan, Director of the Local Finance and Economy Office at the Ministry of the Interior and Safety, stated, “In a situation where the role of public contracts is emphasized to overcome the economic downturn, we expect that this revision of local contract regulations will activate local companies’ participation in public bidding and reduce the burden on companies involved in contracts.” He added, “We will continue to strive to create an efficient and fair local contract system from the perspective of bidders.”

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