Suwon City Improves 'Private Contracts' to Protect Small Local Businesses

Suwon City Hall

The city of Suwon in Gyeonggi Province is increasing the bid acceptance rate for single-person contracts under 20 million KRW by 3 percentage points to support small-scale businesses struggling with rising raw material and labor costs. Additionally, the scope of single-person contracts for women-owned and disabled-owned businesses will be expanded.

On the 1st, Suwon City announced that it has improved the single-person contract system to protect small local businesses facing difficulties due to the economic downturn and high inflation, and to revitalize the local economy.

First, Suwon City raised the bid acceptance rate for single-person contracts under 10 million KRW from the previous 95-97% to 98-99%, and for contracts exceeding 10 million KRW but under 20 million KRW from 92-94% to 95-97%. The scope of single-person contracts for women-owned and disabled-owned businesses was expanded to cover contracts up to 50 million KRW.

A Suwon City official stated, "As raw material and labor costs continue to rise, design costs are steadily increasing. If the bid acceptance rate is too low, the burden on small businesses increases, which can also lead to poor construction quality. We expect that this increase in the bid acceptance rate will provide relief to the management of small local businesses."

They added, "Expanding the scope of single-person contracts for women-owned and disabled-owned businesses will enable projects to be carried out more swiftly, which is expected to help revitalize the local economy."

Meanwhile, since the second half of last year, Suwon City has been implementing policies to promote local businesses, including actively enforcing the split contract system, revising special conditions in Suwon City construction contracts to encourage employment of Suwon citizens and use of local equipment, and prioritizing the purchase of locally produced materials for government projects.

Additionally, to increase contract opportunities for companies holding a single license for contracts under 20 million KRW, the annual limit amount has been raised by 20 million KRW from 150 million KRW to 170 million KRW.

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