Paju-si Improves 'Suyigyeiyak Total Volume System'... Annual Limit Set at 700 Million Won
by Lee jonggu
Published 04 Feb.2025 14:55(KST)
Enhancing Fairness in the Construction Sector
and Stabilizing the Local Economy
Paju City, Gyeonggi Province (Mayor Kim Kyung-il) announced on the 4th that it will improve the operation of the ‘Total Volume System for Private Contracts’ in the construction sector to enhance a fair and transparent contracting environment and promote the revitalization of the local economy.
The Total Volume System for Private Contracts is a system implemented by Paju City since October 2022 to prevent contracts from being concentrated with specific companies and to provide fair participation opportunities to various companies. After two years of operation, the number of companies winning private contracts increased by about 22% compared to before implementation, showing positive effects; however, the improvement in company concentration in the construction sector was analyzed to be insufficient.
According to the improvement plan, △ the number of private contracts allowed with the same company within a department will be reduced from the existing 5 times to 4 times △ the annual total contract amount will be limited to 700 million KRW. Through this, it is expected to prevent contract concentration, increase transparency, and further expand the participation of small and medium-sized enterprises and small business owners within the region, contributing to the stabilization of the local economy.
Additionally, to revitalize the local economy, Paju City is expanding priority contracts with local companies not only for single-estimate private contracts but also to card purchase contracts. The contract rate with local companies, which remained at 38% in the early stages of implementation, has significantly improved to over 65% as of the end of December 2024, and the city plans to maintain 65% in 2025. To this end, for single-estimate private contracts including card expenditures over 2 million KRW, prior consultation with the ordering department is conducted through financial agreement, and careful review is carried out from the design stage to ensure that goods and materials from local companies are reflected.
Mayor Kim Kyung-il of Paju City said, “We expect that the improvement and implementation of the Total Volume System for Private Contracts will enhance the fairness of the private contract system,” and added, “We will make every effort to continuously increase the private contract rate with local companies to protect small local businesses struggling due to the economic downturn and to stabilize the local economy.”
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