Improvement of Construction Capability Evaluation... Strengthening the Evaluation Weight on Safety, Quality, and Illegal Activities

The Ministry of Land, Infrastructure and Transport announced on the 7th that it has prepared a revision of the "Enforcement Rules of the Framework Act on the Construction Industry" to improve the construction capacity evaluation system, and plans to implement it from 2024 after a 40-day legislative notice period.

First, the weight of the credibility evaluation will be expanded and the items adjusted. Considering recent construction site safety accidents and the importance of ESG management, the upper and lower limits of the credibility evaluation will be expanded from the current ±30% of the performance evaluation amount to ±50%.

The discriminative power of evaluation items such as penalty points for poor performance and fatal accident rates will be strengthened, and new evaluation items such as construction evaluation, safety management level evaluation, and major accidents will be introduced.

The deduction level for unfair practices such as so-called "swarm bidding" will be increased, and a deduction item for illegal subcontracting will be newly introduced. However, considering efforts to eradicate illegal activities, a bonus point system for reporting illegal acts will also be newly introduced.

Additionally, bonus points for new construction technologies and overseas construction employment will be added, deduction levels for rehabilitation procedures will be increased, and deductions for delayed construction payments and environmental law violations will be newly introduced.

Reflecting criticism that the management evaluation amount is excessive, the weight of the reflected evaluation amount will be maintained, but the upper and lower limits will be adjusted from three times to 2.5 times the performance evaluation amount.

Kim Sang-moon, Director of the Construction Policy Bureau at the Ministry of Land, Infrastructure and Transport, said, "With this system improvement, evaluations of safety, quality, and illegal activities at construction sites will be strengthened, and it is expected that construction companies' efforts to prevent safety accidents and poor construction will be further enhanced."

The full text of the revision can be found on the Ministry of Land, Infrastructure and Transport website, and those who have opinions on the revision can submit them via mail, fax, or the Ministry's website.

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