Construction Advance Payment Limit Expanded from 80% to 100%

Partial Amendment to the Enforcement Decree of the
National Treasury Management Act> to Take Effect on the 13th
Supporting Industries Facing Rising Material Costs and High-Interest Challenges

From now on, the payment limit for advance payments will be expanded to 100% of the contract amount. This is intended to induce prompt financial execution in the construction industry, which is experiencing financial difficulties.

On the 6th, the Ministry of Economy and Finance announced that the Cabinet meeting reviewed and approved the "Partial Amendment to the Enforcement Decree of the National Treasury Management Act" containing this content. The amendment will be promulgated and enforced immediately on the 13th.

Through this amendment, the payment limit for advance payments will be expanded from the current 80% of the contract amount to 100% of the contract amount. This is to ensure smooth financial support for the construction industry, which is facing difficulties due to recent increases in raw material prices and high interest rates.

Meanwhile, the government has extended temporary special measures under the Enforcement Decree of the Act on Contracts to Which the State is a Party and contract guidelines for contracts in December until June to alleviate corporate management burdens and support prompt execution of public procurement. In addition, other special measures such as omission of pre-qualification (PQ) for general construction bids (shortening announcement period: 50 days → 40 days) and activation of simplified inspection for construction contracts (shortening payment period: up to 14 days) will be implemented.

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