Gyeonggi Province to Greatly Expand Contract Opportunities for Local Construction Firms...Implementing Practical Revitalization Measures

Gyeonggi Province has unveiled comprehensive support measures to inject vitality into the sluggish local construction industry by significantly increasing the opportunities for small-scale architectural firms and construction companies within the province to win contracts.

Front view of Gyeonggi-do Provincial Government Building. Provided by Gyeonggi-do Province

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On April 29, the province announced the full-scale implementation of its “Measures to Revitalize the Local Construction Industry,” which centers on the use of negotiated contracts for public service orders and the promotion of public-private cooperation for mutual growth.

First, when the public sector places orders for services such as design or construction supervision estimated at 100 million won or less, it will actively utilize the negotiated contract system under the “Local Contract Laws” to ensure that small architectural firms can secure work. The province believes that tasks such as design and supervision for projects under 100 million won are well within the capabilities of local small-scale firms, and plans to help these firms secure public projects so they can grow.

Additionally, when selecting large private construction companies to participate in public housing construction projects commissioned by Gyeonggi Housing and Urban Corporation, incentives will be provided to companies that collaborate with local partners. The intention is to require participants in public housing projects to use more local subcontractors, locally produced materials and equipment, and local labor.

The same applies to privately commissioned construction projects. The province plans to sign a “Gyeonggi Province Local Construction Industry Mutual Growth and Benefit Business Agreement” and establish a “collaboration platform between general (large-scale) and specialized (local) construction companies” by the second half of this year, in order to expand the participation of local construction companies in private sector projects.

Furthermore, for public sector construction projects, the province will avoid the practice of ordering “owner-supplied materials installed by the owner.” Previously, provincial public institutions or municipal governments could only use owner-supplied materials in unavoidable circumstances, but the province now aims to further reduce this. Gyeonggi Province expects that if construction companies purchase materials directly, it will also vitalize local material and equipment suppliers.

Lee Euncheol, Director of Construction Safety Technology at Gyeonggi Province, stated, “We will continue to establish and promote measures for mutual growth and development by building an organic and ongoing cooperative system with stakeholders, including large construction companies, local construction companies, and local construction associations.”

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