Gyeonggi-do Implements Amendment Granting Construction Companies 'Investigation Authority and Disposition'

Specification of Submission Materials, Extension of Reinvestigation Grace Period, and Suspension of Bid Deposit Imposition for Disqualified Bidders

Gyeonggi Provincial Government Northern Office

[Asia Economy Reporter La Young-cheol] Gyeonggi Province has decided to extend the grace period for re-investigation of 'preliminary crackdowns on unfair trading companies in public bidding' starting this year and shorten the investigation period, aiming to induce self-innovation in the construction industry.

Gyeonggi Province announced on the 2nd that the "'Partial Amendment Ordinance to the Gyeonggi Province Regional Construction Industry Activation Promotion Ordinance,' which includes these details, passed the Gyeonggi Provincial Council in December last year and has been enforced since January this year."

The preliminary crackdown, which began in October 2019, is a system designed to prevent construction companies without direct construction capabilities from winning public bids and then outsourcing illegally through subcontracting.

The main points of the amended ordinance unify the terms used in the law by changing 'unfair trading companies' or 'paper companies' to 'companies failing registration standards, etc.,' and 'preliminary crackdown' to 'actual condition investigation,' clarifying the investigation authority and grounds for disposition.

The list of submitted documents is to be specified in the ordinance, and principles for compliance with the Personal Information Protection Act are stated to enhance transparency during the investigation process.

If a company is judged to meet the registration requirements for all construction licenses during the actual condition investigation, it will be exempted from the 'public bidding actual condition investigation' for up to six months thereafter.

Additionally, the target period for the 'public bidding actual condition investigation' will be shortened from the current 1 to 1.5 years to 6 months, and if administrative sanctions are imposed during the investigation, the imposition of bid deposits will be simultaneously suspended.

Bang Hyun-ha, Director of the Construction Bureau of Gyeonggi Province, said, "We have prepared improvement measures to ease the burden on the construction industry while maintaining the foundation of the current public bidding actual condition investigation system," adding, "We will continue efforts to establish a sound market order and activate the regional construction industry."

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