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ENFORCEMENT DECREE OF THE ACT ON CONTRACTS TO WHICH THE STATE IS A PARTY

Presidential Decree No. 14710, Jul. 6, 1995

Amended by Presidential Decree No. 14973, Apr. 8, 1996

Presidential Decree No. 15186, Dec. 31, 1996

Presidential Decree No. 15433, Jul. 10, 1997

Presidential Decree No. 15582, Dec. 31, 1997

Presidential Decree No. 15581, Dec. 31, 1997

Presidential Decree No. 15614, Feb. 2, 1998

Presidential Decree No. 15661, Feb. 24, 1998

Presidential Decree No. 16308, May 13, 1999

Presidential Decree No. 16448, jun. 30, 1999

Presidential Decree No. 16548, Sep. 9, 1999

Presidential Decree No. 16682, Dec. 31, 1999

Presidential Decree No. 16919, Jul. 27, 2000

Presidential Decree No. 16943, Aug. 5, 2000

Presidential Decree No. 17019, Dec. 27, 2000

Presidential Decree No. 17344, Aug. 25, 2001

Presidential Decree No. 17546, Mar. 25, 2002

Presidential Decree No. 17585, Apr. 20, 2002

Presidential Decree No. 17688, Jul. 30, 2002

Presidential Decree No. 17791, Dec. 5, 2002

Presidential Decree No. 17824, Dec. 30, 2002

Presidential Decree No. 18155, Dec. 11, 2003

Presidential Decree No. 18359, Apr. 6, 2004

Presidential Decree No. 18666, Dec. 31, 2004

Presidential Decree No. 18903, jun. 30, 2005

Presidential Decree No. 19035, Sep. 8, 2005

Presidential Decree No. 19321, Feb. 8, 2006

Presidential Decree No. 19463, Apr. 28, 2006

Presidential Decree No. 19483, May 25, 2006

Presidential Decree No. 19494, May 30, 2006

Presidential Decree No. 19806, Dec. 29, 2006

Presidential Decree No. 19782, Dec. 29, 2006

Presidential Decree No. 20319, Oct. 10, 2007

Presidential Decree No. 20323, Oct. 15, 2007

Presidential Decree No. 20720, Feb. 29, 2008

Presidential Decree No. 20789, May 21, 2008

Presidential Decree No. 20947, Jul. 29, 2008

Presidential Decree No. 21202, Dec. 31, 2008

Presidential Decree No. 21480, May 6, 2009

Presidential Decree No. 21565, jun. 26, 2009

Presidential Decree No. 21578, jun. 29, 2009

Presidential Decree No. 21692, Aug. 18, 2009

Presidential Decree No. 21698, Aug. 21, 2009

Presidential Decree No. 21834, Nov. 20, 2009

Presidential Decree No. 22282, Jul. 21, 2010

Presidential Decree No. 22493, Nov. 15, 2010

Presidential Decree No. 22525, Dec. 13, 2010

Presidential Decree No. 22626, Jan. 17, 2011

Presidential Decree No. 22637, Jan. 24, 2011

Presidential Decree No. 22638, Jan. 26, 2011

Presidential Decree No. 22660, Feb. 9, 2011

Presidential Decree No. 23267, Oct. 28, 2011

Presidential Decree No. 23282, Nov. 1, 2011

Presidential Decree No. 23313, Nov. 23, 2011

Presidential Decree No. 23477, Dec. 31, 2011

Presidential Decree No. 23778, May 14, 2012

Presidential Decree No. 24130, Oct. 8, 2012

Presidential Decree No. 24317, Jan. 16, 2013

Presidential Decree No. 24441, Mar. 23, 2013

Presidential Decree No. 24601, jun. 17, 2013

Presidential Decree No. 24728, Sep. 17, 2013

Presidential Decree No. 25033, Dec. 30, 2013

Presidential Decree No. 25050, Dec. 30, 2013

Presidential Decree No. 25358, May 22, 2014

Presidential Decree No. 25679, Nov. 4, 2014

Presidential Decree No. 25751, Nov. 19, 2014

Presidential Decree No. 26108, Feb. 23, 2015

Presidential Decree No. 26321, jun. 22, 2015

Presidential Decree No. 26829, Dec. 31, 2015

Presidential Decree No. 26975, Feb. 11, 2016

Presidential Decree No. 27205, May 31, 2016

Presidential Decree No. 27401, Jul. 28, 2016

Presidential Decree No. 27475, Sep. 2, 2016

Presidential Decree No. 27524, Sep. 29, 2016

Presidential Decree No. 27751, Dec. 30, 2016

Presidential Decree No. 27807, Jan. 26, 2017

Presidential Decree No. 27958, Mar. 27, 2017

Presidential Decree No. 28211, Jul. 26, 2017

Presidential Decree No. 28586, Jan. 16, 2018

Presidential Decree No. 28690, Mar. 6, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated by the Act on Contracts to Which the State is a Party and matters necessary for the enforcement thereof. <Amended by Presidential Decree No. 19035, Sep. 8, 2005>
 Article 2 (Definitions)
The terms used in this Decree shall be defined as follows: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20720, Feb. 29, 2008>
1. The term "estimated price" means a price calculated in accordance with Article 7 before determining a budget price so as to take the price as a criterion for deciding whether a contract shall undergo an international tendering procedure under the provisions of Article 4 of the Act on Contracts to Which the State is a Party (hereinafter referred to as the "Act"), in making a contract for the procurement of goods, construction works, or services, etc.;
2. The term "budget price" means a value prepared in advance and made available so as to be held as a criterion for determining a successful tenderer or a contract price before commencing a tendering procedure or concluding a contract, which is formulated pursuant to the provisions of Article 8;
3. The term "publicly notified amount" means an amount publicly notified by the Minister of Strategy and Finance under the main body of Article 4 (1) of the Act;
4. The term "performance bond for a construction project" means a bond by which the issuer guarantees to perform contractual obligations on behalf of the counter-party to a contract for a construction project, where the counter-party to the contract fails to perform contractual obligations, or to pay a specified amount, if the guarantor fails to perform such obligations;
5. Deleted. <by Presidential Decree No. 22282, Jul. 21, 2010>
 Article 3 (Relationship with Other Statutes)
(1) Except as otherwise provided for in any other statute, contracts to which the State is a party shall be governed by the provisions of this Decree.
(2) Provisions applicable only to government procurement contracts subject to international tendering procedures shall be prescribed separately by Presidential Decree.
 Article 4 (Principle of Contracting)
When the head of a central government agency or a public official to whom the contracting is delegated or entrusted by the head of a central government agency (hereinafter referred to as “contracting officer”) intends to conclude a contract, he/she shall not attach to the contract any special term or condition that unfairly restricts the counter-party’s interest specified in the Act, this Decree, or any other relevant statute.
 Article 4-2 (Provisions of Integrity Agreement and Procedure for Execution)
(1) Specific provisions that shall be included in an integrity agreement under Article 5-2 (1) of the Act (hereinafter referred to as “integrity agreement”) are as follows:
1. Provisions regarding prohibition of demanding, promising, offering, receiving money, goods, entertainment, or other benefit;
2. Provisions regarding prohibition of an act of hindering fair competition, such as prior agreement on a tendering price and collusion for a specific person’s successful tendering;
3. Provisions regarding prohibition of an act of demanding or obtaining particular information relevant to tendering or contracting through an arrangement or solicitation that hinders impartiality in performance of duty.
(2) The head or a contracting officer of a central government agency shall require each tenderer to submit an integrity agreement signed by the tenderer pursuant to Article 5-2 of the Act, when the tenderer submits a written tender.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 4-3 (Continuous Performance of Contract while Integrity Agreement is Breached)
When the head of a central government agency approves the continuous performance of a contract pursuant to the proviso to Article 5-3 of the Act while the relevant integrity agreement is breached, he/she shall take into consideration the criteria determined by the Minister of Strategy and Finance with regard to the nature of the subject matter of the contract, the progress and duration of performance of the contract, etc.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 5 (Appointment of Acting or Assistant Contracting Officer and Notice of Appointment)
(1) When the head of a central government agency appoints a public official as an acting or assistant contracting officer to act on behalf of a public official that is appointed to take charge of contracting under Article 6 (1) of the Act (hereinafter referred to as “contracting officer”) or to take charge of part of administrative affairs assigned to such contracting officer, he/she shall notify the appointment to a finance officer and an expenditure officer specified in Article 22 of the Management of the National Funds Act and the Board of Audit and Inspection. <Amended by Presidential Decree No. 19035, Sep. 8, 2005>
(2) A public official that shall act on behalf of a contracting officer with regard to all administrative affairs assigned to the contracting officer under Article 6 (1) of the Act shall be referred to as an “acting contracting officer”, a public official that shall take charge of part of administrative affairs assigned to the contracting officer as an “assistant contracting officer”, and a public official that shall act on behalf of an assistant contracting officer as an “acting assistant contracting officer”, respectively.
(3) When the head of a central government agency intends to entrust administrative affairs that are assigned to the contracting officer to a public official in another central government agency pursuant to Article 6 (2) of the Act, he/she shall obtain consent of the public official, to whom such administrative affairs are to be entrusted, and the head of the central government agency concerned to the scope of administrative affairs that he/she intends to entrust before entrusting such administrative affairs and shall notify the Board of Audit and Inspection of his/her intention. The procedure prescribed above shall also apply to the case where it is intended to appoint a public official that shall act on behalf of a contracting officer with regard to all administrative affairs assigned to the contracting officer or who shall take charge of part of such administrative affairs.
(4) Paragraph (3) shall also apply mutatis mutandis to cases where the head of a central government agency intends to entrust administrative affairs relating to contracts within his/her jurisdiction to another government agency pursuant to Article 6 (3) of the Act.
 Article 6 (Financial Guarantee for Contracting Officers)
(1) Pursuant to Article 6 (5) of the Act, the head of each central government agency shall establish and enforce regulations on financial guarantee for the contracting officer of the central government agency.
(2) Common regulations necessary for the financial guarantee under paragraph (1) shall be established by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
CHAPTER II ESTIMATED PRICE AND BUDGET PRICE
 Article 7 (Calculation of Estimated Price)
The head or a contracting officer of a central government agency shall determine an estimated price based on the amount, etc. that is appropriated in the budget, with the formula prescribed in one of the following subparagraphs:
1. If the contract is for a construction project, the price for the portion for which materials are to be supplied by the Government shall be excluded from the estimated price;
2. If the contract is a unit price contract, the estimated price shall be calculated by multiplying the estimated unit price of the goods involved by the estimated quantity of goods to be procured;
3. If the contract is executed to meet demands made individually for procurement or made in installments, the amount calculated in accordance with either of the following subparagraphs shall be chosen as the estimated price:
(a) The amount determined by adjusting the total amount of similar contracts made during one fiscal year, or 12 months, immediately before the fiscal year in which the relevant contract is to be executed by estimating changes in the quantity and amount during the immediately following 12 months;
(b) The total amount of contracts to be executed during the same fiscal year or immediately following 12 months;
4. If the contract is for the lease, rental, or installment purchase of goods or services with no fixed total contract price, the estimated price shall be determined in accordance with either of the following items, whichever is relevant:
(a) If the contract has a fixed contract term, the price shall be estimated for the entire contract term;
(b) If the contract term is not fixed or indefinite, the estimated price shall be determined by multiplying the estimated payment for one month by 48;
5. If the subject matter to be procured involves optional items, the estimated price shall be determined with the maximum amount of the subject matter, including such optional items.
[This Article Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996]
[Previous Article 7 moved to Article 7-2]
 Article 7-2 (Safekeeping of Budget Price)
(1) The head or a contracting officer of a central government agency shall determine a budget price according to relevant specifications, design documents, etc. for a transaction to be made through competitive tenders or by a negotiated contract, seal the price tightly so as to prevent the budget price from being divulged, and keep the price in a place where tenders are to be opened or the price for the contract is to be negotiated. <Amended by Presidential Decree No. 16548, Sep. 9, 1999>
(2) When the head or a contracting officer of a central government agency intends to execute a negotiated contract pursuant to Article 26 (1) 5 (a) or (f) (excluding cases where it is required to submit a written quotation pursuant to Article 30 (2)), a contract made through negotiations pursuant to Article 43, or a contract based on rough estimate pursuant to Article 70, he/she may omit to determine the budget price therefor, and when he/she intends to call for tenders for a turnkey project pursuant to Article 79 (1) 5 or tenders for a technical proposal of basic plans pursuant to subparagraph 3 of Article 98, he/she shall not determine a budget price. <Amended by Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 25033, Dec. 30, 2013>
[Moved from Article 7]
 Article 8 (Methods for Determining Budget Price)
(1) A budget price shall be determined regarding the total price of the subject matter of the contract to be executed: Provided, That a budget price may be determined for a unit price where the contract is for continual manufacturing, construction works, repair, processing, trading, supply, or rental during a specific term.
(2) In cases of a contract for a construction project, in which the performance takes years and the scope of the entire project is fixed in accordance with design documents, etc. (hereinafter referred to as “long-term continuing project”), or a contract for the manufacture of goods, in which the performance takes years and the scope of subject matters of the contract is fixed in accordance with design documents or specifications (hereinafter referred to as “long-term manufacture of goods”), the budget price for the entire construction project or for total production, etc. shall be determined within the maximum of the total construction cost (excluding the amount of materials supplied by the Government) or the total manufacturing cost (excluding the amount of materials supplied by the Government) on the relevant budget. <Amended by Presidential Decree No. 21202, Dec. 31, 2008>
 Article 9 (Criteria for Determining Budget Price)
(1) The head or any contracting officer of a central government agency shall determine a budget price based on any of the following prices: <Amended by Presidential Decree No. 25679, Nov. 4, 2014>
1. The price of actual transactions (referring to the price of actual transactions not exceeding a determined price, if the price is determined under the provisions of a statute), if reasonable transactions have been made;
2. The price calculated by cost accounting where no reasonable price of actual transactions exists due to the nature of the contract, such as a contract for special goods, for example, a newly developed product or a product with special specifications or special features, or special construction works or services. In such cases, the price by cost accounting shall be calculated with material cost, labor cost, expenses, overhead expenses, and profits for the goods, construction works, or services, which constitute the subject matter of the contract;
3. The price approved by the head of the competent central government agency for a construction project as the standard market unit price based on the market transaction price, etc. by type of construction project that has been already performed;
4. The appraised price or the price of actual transactions of similar goods, construction works, or services, or a quoted price, where it is impracticable to apply the price specified in any provision of subparagraphs 1 through 3.
(2) Notwithstanding paragraph (1), where it is intended to execute a contract with a business entity that has successfully localized components for military supplies that have been imported from abroad, the budget price therefor may be determined on the basis of the price approved by the Administrator of the Defense Acquisition Program, considering the price for importing such components. <Newly Inserted by Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 19321, Feb. 8, 2006; Presidential Decree No. 20319, Oct. 10, 2007>
(3) Where the head or any contracting officer of a central government agency determines a budget price pursuant to paragraph (1), he/she shall take into account the quantity of contract, the period for performance, the current status of supply and demand, terms and conditions of contract, and other circumstances.
(4) Except as otherwise expressly provided for in paragraphs (1) through (3), necessary matters concerning the determination of a budget price shall be determined by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 20720, Feb. 29, 2008>
CHAPTER III METHOD OF CONTRACTING
 Article 10 (Methods of Competition)
(1) The competition under Article 7 of the Act shall be conducted by inviting tenders or by holding an auction in a manner similar to a tendering procedure. <Amended by Presidential Decree No. 21202, Dec. 31, 2008>
(2) If the head or a contracting officer of a central government agency deems it necessary for the sale of a chattel, he/she may put the chattel to auction in a manner similar to the tendering procedure prescribed in the provisions of this Decree.
(3) If the head or a contracting officer of a central government agency deems it necessary for the purchase of goods, he/she may put such goods to reverse auction in a manner similar to the tendering procedure prescribed in the provisions of this Decree. <Newly Inserted by Presidential Decree No. 21202, Dec. 31, 2008>
 Article 11 (Effectuation of Competitive Tendering Procedures)
A competitive tendering procedure shall become effective when two or more persons make valid tenders.
 Article 12 (Qualifications for Participation in Competitive Tendering Procedures)
(1) The head or a contracting officer of a central government agency shall allow only the persons who meet the following requirements to participate in a competitive tendering procedure: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
1. Deleted; <by Presidential Decree No. 16548, Sep. 9, 1999>
2. A person shall hold a valid permit, authorization, or license, have completed registration or reporting, or meet the requirements for qualification, if a person is required to hold a valid permit, authorization, or license, complete registration or reporting, or meet the requirements for qualification in accordance with provisions of any other statutes;
3. A person shall successfully pass an examination conducted by the competent authority, where an examination for measurement of security is required;
4. A person shall meet other requirements prescribed by Ordinance of the Ministry of Strategy and Finance.
(2) Paragraph (1) 2 shall not apply to cases where a small and medium enterprise cooperative under the Small and Medium Enterprise Cooperatives Act participates in a competitive tendering procedure for the manufacture or purchase of goods or for providing services (limited to cases where such a small and medium enterprise cooperative allows its members that meet the requisites prescribed in paragraph (1) 2 to manufacture and purchase relevant goods or to perform services). <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19494, May 30, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 24601, Jun. 17, 2013>
1. and 2. Deleted; <by Presidential Decree No. 20319, Oct. 10, 2007>
(3) “Persons prescribed by Presidential Decree, who have evaded taxes, etc.” in Article 27-5 (1) of the Act means any of the following: <Newly Inserted by Presidential Decree No. 25033, Dec. 30, 2013; Presidential Decree No. 27958, Mar. 27, 2017>
1. A person whose amount of evasion, refund, or deduction of taxes under Article 3 of the Punishment of Tax Offenses Act is not less than five hundred million won;
2. A person whose amount of reduction, exemption, evasion, or refund of customs duties under Article 270 of the Customs Act is not less than five hundred million won;
3. A person whose amount of evasion, refund, or deduction of local taxes under Article 102 of the Framework Act on Local Taxes is not less than five hundred million won;
4. A person who fails to comply with his/her obligation to report an overseas financial account under Article 34 of the Adjustment of International Taxes Act and whose amount of violation of his/her obligation to report exceeds the amount referred to in Article 34-2 (1) of the same Act;
5. A person who fails to comply with his/her obligation to report capital transactions under Article 18 of the Foreign Exchange Transactions Act and whose amount of violation of his/her obligation to report is the amount provided in Article 29 (1) 6 of the same Act.
(4) The head or a contracting officer of a central government agency shall confirm whether the counter-party to a contract falls under any subparagraph of paragraph (3), by means of requiring the counter-party to submit verification documents, such as a reply to request of criminal history records under subparagraph 5 of Article 2 of the Act on the Lapse of Criminal Sentences or a written judgment, or by other similar means. <Newly Inserted by Presidential Decree No. 25033, Dec. 30, 2013>
(5) Where it is impracticable for the counter-party to a contract participating in the tender procedures to submit verification documents under paragraph (4), the head or a contracting officer of a central government agency may require the counter-party to submit a written oath stating the fact that the counter-party does not fall under any subparagraph of paragraph (3). In such cases, the written oath shall include that, if facts that are different from the statement on the written oath are found, the contract may be cancelled or terminated, and disposal of sanctions for improper businessman may be imposed on the counter-party. <Newly Inserted by Presidential Decree No. 25033, Dec. 30, 2013>
(6) Article 76 (4), (5), (7) and (8) shall apply mutatis mutandis to restrictions on qualification for participation by a person falling under paragraph (3). <Newly Inserted by Presidential Decree No. 25033, Dec. 30, 2013; Presidential Decree No. 27475, Sep. 2, 2016>
 Article 13 (Pre-qualification for Participation in Tendering)
(1) The head or a contracting officer of a central government agency may pre-qualify participants in a tendering procedure to select persons qualified for the participation in a competitive tendering procedure and shall notify the qualified persons of results of the selection, when he/she selects qualified persons: Provided, That participants in a tendering procedure shall be pre-qualified to select qualified persons in cases of a contract for a construction project prescribed in Article 42 (4) 1. <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 26829, Dec. 31, 2015>
(2) Where the head or a contracting officer of a central government agency pre-qualifies participants in a tendering procedure pursuant to paragraph (1), he/she shall establish standards for pre-qualification, comprehensively taking into account the factors necessary for the evaluation of capabilities of performing the contract, including the level of difficulty in performing the contract, performance records, technical capacity, financial position, social reputation, and the level of fidelity to the performance of the contract. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
(3) If a relevant statute prescribes the procedure, etc. for selecting business entities competent for services, etc., the head or a contracting officer of a central government agency may select persons qualified for the participation in a competitive tendering procedure in accordance with the procedure, etc. so prescribed, notwithstanding paragraph (2). <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
(4) The head or a contracting officer of a central government agency shall keep documents describing the following matters so that persons intending to participate in a tendering procedure can inspect such documents before tendering, and shall provide access to and issue such documents to persons intending to participate in the tendering procedure, upon receipt of a request therefor: Provided, That giving access to or issuing of such documents may be substituted by publishing such documents through the Korea On-line E-Procurement System under subparagraph 4 of Article 2 of the Electronic Procurement Utilization and Promotion Act (hereinafter referred to as “E-Procurement System”): <Newly Inserted by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 24728, Sep. 17, 2013>
1. Standards for pre-qualification under paragraph (2);
2. Methods for preparing and submitting relevant evidential documents necessary for the pre-qualification for participation in a tendering procedure;
3. Matters regarding the pre-qualification for participation in a tendering procedure, in addition to matters prescribed in subparagraphs 1 and 2.
(5) The procedure for pre-qualification for participation in a tendering procedure under paragraph (1) and necessary matters regarding factors that shall be taken into consideration in evaluating the level of fidelity to the performance of a contract under paragraph (2) shall be prescribed by Ordinance of the Ministry of Strategy and Finance. <Newly Inserted by Presidential Decree No. 22282, Jul. 21, 2010>
 Article 14 (Tendering for Construction Projects)
(1) When the head or a contracting officer of a central government agency calls for tenders for a construction project, he/she shall prepare the following documents (hereinafter referred to as “tender documents”): Provided, That, for a tendering for which a successful tenderer shall be determined pursuant to Article 42 (4), a person intending to participate in such tendering procedure may be allowed to prepare a bill of quantity specified in subparagraph 2 on his/her own (including the cases of preparing referring to basic data on quantity of materials issued by the head or a contracting officer of a central government agency). <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 26829, Dec. 31, 2015>
1. Design documents;
2. A bill of quantity of materials for each type of work (hereinafter referred to as "bill of quantity");
3. Documents specified by Ordinance of the Ministry of Strategy and Finance as relevant to tendering, in addition to documents specified in subparagraphs 1 and 2.
(2) The head or a contracting officer of a central government agency shall provide access to and issue tender documents to persons intending to participate in a tendering procedure (the design documents specified in paragraph (1) 1 shall be issued only upon receipt of a request therefor): Provided, That the head or a contracting officer of a central government agency may not give access or issue a bill of quantity of materials where a person intending to participate in a tendering procedure is required to prepare a bill of quantity pursuant to the proviso to paragraph (1). <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 26829, Dec. 31, 2015>
(3) Notwithstanding paragraph (2), the head or a contracting officer of a central government agency may publish tender documents through the E-Procurement System in substitution for giving access to or issuing of tender documents. <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 24728, Sep. 17, 2013>
(4) and (5) Deleted. <by Presidential Decree No. 19483, May 25, 2006>
(6) A person intending to participate in a tendering procedure for a construction project shall submit a calculation sheet along with a written tender when making a tender to the head or a contracting officer of the competent central government agency: Provided, That in cases of a construction project for which the estimated price is less than ten billion won, or a construction project for which re-tenders are called for pursuant to Article 20 (1), the calculation sheet shall be submitted along with a commencement report submitted by a person who is determined as a successful tenderer for the construction project: <Amended by Presidential Decree No. 26829, Dec. 31, 2015>
(7) The calculation sheet specified in paragraph (6) shall be prepared by describing unit prices in a bill of quantity: Provided, That if a person intending to participate in a tendering procedure is required to prepare a bill of quantity pursuant to the proviso to paragraph (1), such person shall state only unit prices in the bill of quantity prepared by himself/herself: <Amended by Presidential Decree No. 26829, Dec. 31, 2015>
(8) If a contract is for a long-term continuing construction project, tenders shall be invited for the entire project.
[This Article Wholly Amended by Presidential Decree No. 15186, Dec. 31, 1996]
 Article 14-2 (On-site Presentation of Construction Projects)
(1) When the head or a contracting officer of a central government agency intends to call for tenders for a construction project, he/she may hold an on-site presentation session in the actual project site so as to ensure proper performance of works by participants in tendering, taking into consideration the nature, scale, etc. of the project.
(2) Notwithstanding paragraph (1), the head or a contracting officer of a central government agency shall hold an on-site presentation session without exception, if the estimated price for a construction project is more than 30 billion won: Provided, That the foregoing shall not apply to cases where it is hard to access the site or there is any ground specified by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
(3) An on-site presentation session under the paragraph (1) or paragraph (2) shall be held before the period specified in any of the following subparagraphs, which shall be counted from the date immediately before the deadline for the submission of written tenders depending upon the scale of each construction project: Provided, That such period may be shortened in cases of Article 35 (4):
1. Seven days, if the estimated price is less than one billion won;
2. 15 days, if the estimated price is more than one billion won but less than five billion won;
3. 33 days, if the estimated price is more than five billion won.
(4) Deleted. <by Presidential Decree No. 22282, Jul. 21, 2010>
[This Article Newly Inserted by Presidential Decree No. 19483, May 25, 2006]
 Article 15 (Restriction on Participation in Tendering for Continuing Construction Projects)
The head or a contracting officer of a central government agency shall not permit a person who does not sign a negotiated contract for a construction project for which a negotiated contract can be made with the immediately preceding or current contractor pursuant to the provisions of Article 26 (1) 2 (a) through (c) (hereinafter referred to as “continuing construction project”) to participate in a competitive tendering procedure for the same construction project. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
[This Article Wholly Amended by Presidential Decree No. 15186, Dec. 31, 1996]
 Article 16 (Tendering for Manufacture or Purchase of Goods or for Services, etc.)
(1) When the head or a contracting officer of a central government agency intends to call for tenders for the manufacture or purchase of goods or for services, etc., he/she shall prepare and keep documents specified for tendering by Ordinance of the Ministry of Strategy and Finance and shall allow a person intending to participate in tendering to inspect such documents at the person’s request during a period from the date of public notice of a tender until the closing date for registration of tenderers: Provided, That such documents shall be distributed to a person intending to participate in tendering at the person’s request, where tenders are called for with regard to the manufacture or purchase of goods or for services, etc., if the estimated price for goods or services, etc. is not less than the publicly notified amount. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
(2) Notwithstanding paragraph (1), the head or a contracting officer of a central government agency may publish documents for tendering through the E-Procurement System in substitution for giving access to or issuing of such documents. <Newly Inserted by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 24728, Sep. 17, 2013>
(3) If the head or a contracting officer of a central government agency deems it necessary in the light of the nature of a contract for a software project under the provisions of subparagraph 3 of Article 2 of the Software Industry Promotion Act, he/she may call for tenders for goods and services on a turnkey basis. <Amended by Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 22282, Jul. 21, 2010>
(4) Where the head or a contracting officer of a central government agency intends to call for tenders for goods and services on a turnkey basis pursuant to paragraph (3), he/she shall choose a method deemed proper for the nature of the subject matter of the contract, among the methods for determining a successful tenderer under Article 42 (1) through (3) and Article 43, and shall expressly state the method in the relevant public notice of a tender. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 22282, Jul. 21, 2010>
(5) Tendering for the manufacture or purchase of goods or for services, etc. shall be made by submitting a written tender in the form prescribed by Ordinance of the Ministry of Strategy and Finance, and the tender price of a tender that shall be made for total amount shall indicate the total amount, while the tender price of a tender that shall be made for unit price shall indicate the unit price. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22282, Jul. 21, 2010>
(6) Article 14 (8) shall apply mutatis mutandis to the long-term manufacture, etc. of goods. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
[This Article Wholly Amended by Presidential Decree No. 15186, Dec. 31, 1996]
 Article 17 (Tendering for Large Quantity of Goods)
(1) In a general competitive tendering procedure for the sale of goods in a large quantity, a user may be allowed to make a tender with the quantity that he/she desires to purchase and the unit price therefor within the maximum of the quantity of goods to be sold.
(2) In a general competitive tendering procedure for the manufacture or purchase of goods in a large quantity, a supplier may be allowed to make a tender with the quantity that he/she desires to supply and the unit price therefor within the maximum of the required quantity of goods.
(3) The scope of subject matters of a competitive tendering procedure in a desired quantity under paragraph (1) or (2) shall be prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 18 (Tendering in Two-Step Competitions, etc.)
(1) If the head or a contracting officer of a central government agency finds it impracticable to prepare proper specifications, etc. in advance for a contract for the manufacture or purchase of goods or for services (excluding contracts for services specified by Ordinance of the Ministry of Strategy and Finance as simple labor services), or finds it necessary in the light of the nature of such a contract, he/she may call for tenders for specifications or technology first and then call for tenders again for pricing. <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20720, Feb. 29, 2008>
(2) In cases of paragraph (1), only persons determined as qualified as a result of opening tenders for specifications or technology shall be qualified for participation in the tendering procedure for pricing.
(3) Notwithstanding paragraphs (1) and (2), if the head or a contracting officer of a central government agency deems it necessary in the light of the nature of a contract for the manufacture and purchase of goods or for services (excluding contracts for services specified by Ordinance of the Ministry of Strategy and Finance as simple labor services), he/she may simultaneously call for tenders for specifications and pricing or for technology and pricing, and shall open price tenders submitted only by persons confirmed as qualified as a result of opening tenders for specifications or technology in such cases. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20720, Feb. 29, 2008>
(4) When the head of a central government agency intends to call for tenders pursuant to paragraphs (1) through (3), he/she shall determine the criteria, procedures, etc. for evaluation before tendering, and shall make such criteria, procedures, etc. available to persons intending to participate in tendering for inspection. <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
(5) When it is impracticable to determine a successful tenderer as a result of opening price tenders pursuant to paragraph (3), and the number of persons qualified in the aspect of specifications or technology is two or more persons, such persons qualified in the aspect of specifications or technology may be required to submit a price tender once again. <Newly Inserted by Presidential Decree No. 15614, Feb. 2, 1998>
 Article 19 (Incidental Tender)
(1) When the head or a contracting officer of a central government agency calls for tenders for a construction project that meets the standards prescribed by Ordinance of the Ministry of Strategy and Finance, he/she shall require each tenderer to submit a calculation sheet that describes matters regarding subcontracting, such as the portion to be subcontracted out of the construction project constituting the tender price, the amount of subcontract, and subcontractors: Provided, That the foregoing shall not apply to any of the following cases: <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
1. Where re-tenders are invited pursuant to the provision of Article 20 (1);
2. Where tendering for a construction project is urgently required;
3. Where special technology is required or tenders are called for a construction project for which no specialized constructor competent for subcontracting is available due to particular local conditions;
4. Where tenders are invited for a construction project for which subcontracting is deemed inappropriate in the light of performance of obligations when a defect is discovered from construction works, work process management, or requirements for security.
(2) Where each tenderer is required to describe matters regarding subcontracting pursuant to paragraph (1) and the project on tender is a long-term continuing project, each tenderer shall be required to state a tender price for the entire project: Provided, That if it is deemed necessary in the light of the period for the execution of a construction project, each tender may be allowed to state only the tender price for the construction works to be executed during the first year.
(3) The procedure of the incidental tender under paragraph (1) and other necessary matters therefor shall be determined and publicly notified by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 17546, Mar. 25, 2002]
 Article 20 (Re-Tendering and Re-Public Notice of Tenders)
(1) If two or more valid tenders have not been submitted or there is no successful tenderer in a competitive tendering procedure, re-tenders may be called for at the same place. In such cases, re-tenders shall not be deemed new tenders and shall not be subject to any restriction on tenders or to the number of repeated tendering procedures.
(2) If no person submits a tender, if there is no successful tenderer, or if the successful tenderer does not sign the contract, the request for re-tendering may be given again.
(3) When re-tenders are called for or the request for re-tendering is given pursuant to paragraphs (1) or (2), no change shall be made to the price and other terms and conditions prescribed when tenders were initially called for, except for the deadline thereof. <Newly Inserted by Presidential Decree No. 15614, Feb. 2, 1998>
 Article 21 (Contract Subject to Limited Competitive Tendering, Limitations, etc.)
(1) Cases where limitations may be placed on the qualification of participants in competition pursuant to the proviso to Article 7 (1) of the Act and such limitations shall be as follows. In such cases, specific criteria for restriction on the limitations under subparagraphs 1 through 6 and 9 shall be prescribed by Ordinance of the Ministry of Strategy and Finance: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 15433, Jul. 10, 1997; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 21834, Nov. 20, 2009; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 22626, Jan. 17, 2011; Presidential Decree No. 23267, Oct. 28, 2011; Presidential Decree No. 24130, Oct. 8, 2012; Presidential Decree No. 25358, May 22, 2014; Presidential Decree No. 27475, Sep. 2, 2016; Presidential Decree No. 27524, Sep. 29, 2016; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 28690, Mar. 6, 2018>
1. In the case of a contract for a construction project in the amount prescribed by Ordinance of the Ministry of Strategy and Finance, the capabilities of construction and past records of performance of projects of the same type as the project concerned;
2. In the case of a contract for a construction project which requires special technology or construction methods, the status of technology in possession necessary for the execution of the construction project concerned, or past records of performance of construction projects of the same type as the project concerned;
3. In the case of a contract for manufacturing goods which requires a special technology or construction methods, the status of equipment and technology in possession necessary for manufacturing the goods concerned, or past records of the manufacture of goods of the same type as the goods concerned;
4. Whether the quality of goods has been certified, if goods certified for their quality specified in any of the following items are to be purchased, because special performance or quality is required:
(b) Deleted; <by Presidential Decree No. 27807, Jan. 26, 2017>
(c) Goods certified as eligible for the Environment Mark under Article 17 of the Environmental Technology and Industry Support Act;
5. In the case of a service contract which requires special technology, the status of technology in possession necessary for providing such services, or past records of performance of the services of the same type as the services concerned;
6. In the case of a contract whose estimated value is less than the amount prescribed by Ordinance of the Ministry of Strategy and Finance, the location of the head office in the corporate register (in the case of a self-employed individual, referring to the location of the place of business mentioned in the business registration certificate or documents related to permission, approval, license, registration, report, etc. under the relevant statutes; hereinafter the same shall apply);
7. Where a contract for a construction project is subject to limitations under Article 22, the criteria for such limitations;
8. Where it is intended to manufacture and purchase goods designated and publicly announced by the Minister of SMEs and Startups pursuant to Article 6 of the Enforcement Decree of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets, small and medium enterprises defined under Article 2 of the Framework Act on Small and Medium Enterprises;
8-2. Where it is intended to sign a goods manufacturing or purchasing contract or a service contract following the limited competitive tendering procedure stipulated in Article 7-2 (2) 1 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets, small or micro enterprises that have participated in the joint venture business referred to in the same subparagraph;
9. Where the head or a contracting officer of a central government agency finds it necessary particularly for preventing poor performance of a contract, the financial position of each participant in the competition;
10. In cases of the manufacture and purchase of goods or services in a amount less than the publicly notified amount (excluding engineering projects defined under subparagraph 3 of Article 2 of the Engineering Industry Promotion Act and construction technology services defined under subparagraph 3 of Article 2 of the Construction Technology Promotion Act), the small and medium enterprises defined under Article 2 of the Framework Act on Small and Medium Enterprises;
11. Where it is intended to purchase goods produced by a person in a particular area, whether the person falls under any of the following:
(a) A person that has his/her business relocated to a special region designated for the support of local small and medium enterprises under Article 62-23 of the Small and Medium Enterprises Promotion Act (applicable only during the period designated under paragraph (2) of the same Article);
(b) A person that has his/her business relocated to an agro-industrial complex under the Rearrangement of Agricultural and Fishing Villages Act.
(2) When the head or a contracting officer of a central government agency intends to place limitations on the qualification of participants in a competition pursuant to paragraph (1), he/she shall clearly state such limitations and the criteria for limitations in the relevant public notice of a tender.
(3) When the head or a contracting officer of a central government agency deems it necessary for placing limitations on the qualification of participants in a competitive tendering procedure for a construction project pursuant to paragraph (1) 6, the public notice of a tender under paragraph (2) may be substituted by a notice of the matters specified in each subparagraph of Article 36 to persons qualified for participation in the relevant tendering procedure, as prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 22 (Tendering Procedures subject to Limitations By Nature or Scale of Construction Project)
(1) The head or a contracting officer of a central government agency shall classify construction projects according to the nature and scale of each project into categories, establish criteria for limitations on a competition for each category, and publicly notify the criteria in advance through the E-Procurement System so that persons qualified for participation in a competition can file an application for registration. <Amended by Presidential Decree No. 17688, Jul. 30, 2002; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 24728, Sep. 17, 2013>
(2) Upon receipt of applications for registration under paragraph (1), the head or a contracting officer of a central government agency shall examine such applications, select and register persons qualified for participation in a competition for each category and grade, and notify matters specified in Article 36 to the persons qualified for participation in a competition whenever tenders are called for a construction project so that they can file an application for participation in tendering.
(3) When the head of a central government agency intends to formulate criteria for limitations on a competition pursuant to paragraph (1), he/she shall consult with the Minister of Strategy and Finance thereon. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 23 (Contracts Subject to Selective Competitive Tendering Procedures)
(1) The cases where tenders shall be invited through a selective competitive tendering procedure under the proviso to Article 7 (1) of the Act are as follows: <Amended by Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20789, May 21, 2008; Presidential Decree No. 21480, May 6, 2009; Presidential Decree No. 21834, Nov. 20, 2009; Presidential Decree No. 23267, Oct. 28, 2011; Presidential Decree No. 27807, Jan. 26, 2017; Presidential Decree No. 28211, Jul. 26, 2017; Presidential Decree No. 28690, Mar. 6, 2018>
1. Where it is impracticable to accomplish the purpose of a contract without a person that has special equipment, technology, materials, goods, or past records of performance in the light of the nature or purpose of the contract, but the number of persons eligible for tendering is not more than ten persons;
2. Where a construction project defined under the Framework Act on the Construction Industry (excluding specialized construction projects), the estimated price of which is not more than 300 million won, a specialized construction project under the Framework Act on the Construction Industry, the estimated price of which is not more than 100 million won, or a construction project under any other statute relating to construction projects, the estimated price of which is not more than 100 million won is carried out, or goods are manufactured, the estimated price of which is not more than 100 million won;
3. Where an asset is sold or purchased, the estimated price of which is not more than 50 million won;
4. Where goods are leased to or from someone, if the total amount of rent on the budget is not more than 50 million won;
5. Where a contract is not for a construction project, manufacture of goods, sale of an asset, or lease of goods, and the estimated price therefor is not more than 50 million won;
6. A product certified pursuant to Article 15 of the Industrial Standardization Act;
7. Deleted; <by Presidential Decree No. 16548, Sep. 9, 1999>
8. Where it is permitted to make a negotiated contract pursuant to the proviso to Article 7 of the Act and Article 26 of this Decree;
9. Where an order is placed for manufacturing or purchasing a recycled product meeting the standards prescribed under Article 33 of the Act on the Promotion of Saving and Recycling of Resources and the quality of which has been certified pursuant to Article 17 (1) 3 of the Enforcement Decree of the Industrial Technology Innovation Promotion Act, or a product certified as eligible for the Environment Mark under Article 17 of the Environmental Technology and Industry Support Act;
10. Where goods designated and publicly announced by the Minister of SMEs and Startups pursuant to Article 6 of the Enforcement Decree of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets are manufactured or purchased from small and medium enterprises defined under Article 2 of the Framework Act on Small and Medium Enterprises;
11. Where small or micro enterprises (small or micro enterprises that can deliver relevant goods, etc.) recommended by the Small and Medium Enterprise Cooperatives referred to in Article 3 (1) of the Small and Medium Enterprise Cooperatives Act are made to manufacture goods or perform services at the request of the head of each central government agency pursuant to Article 7-2 (2) 2 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets.
(2) When a public official executes a contract through a selective competitive tendering procedure with the authority delegated by the head of a central government agency pursuant to paragraph (1) 1, he/she shall report the details thereof to the head of the central government agency, who shall notify the Board of Audit and Inspection thereof. <Amended by Presidential Decree No. 15614, Feb. 2, 1998>
 Article 24 (Designation of Persons Eligible for Tendering in Selective Competitive Tendering Procedures)
(1) In order to succeed in inviting tenders to a selective tendering procedure pursuant to Article 23, the head or a contracting officer of a central government agency shall designate at least five persons eligible for tendering, and at least two persons out of them shall file an application for participation in tendering: Provided, That if the number of persons eligible for designation is less than five persons, all such persons shall be designated. <Amended by Presidential Decree No. 15614, Feb. 2, 1998>
(2) In cases of paragraph (1), each person eligible for tendering shall be notified of the matters specified in each subparagraph of Article 36.
(3) When the head or a contracting officer of a central government agency intends to designate persons eligible for tendering pursuant to paragraph (1), he/she shall notify each of them thereof, as prescribed by Ordinance of the Ministry of Strategy and Finance, and make sure whether each of them intends to participate in tendering. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 25 (Multiple Competitions for Similar Goods)
Where the head or a contracting officer of a central government agency intends to designate and purchase goods, the quality, performance, or efficiency of which is not lower than a certain level, from among similar kinds of goods with different quality, performance, or efficiency, he/she may put a contract therefor into multiple competitions. In such cases, the tenderer who calls the lowest ratio of price to the budget price set for the similar kind of goods shall become the successful tenderer.
 Article 26 (Cases Applicable to Negotiated Contract)
(1) The cases for which a negotiated contract is permissible under the proviso to Article 7 (1) of the Act are as follows: <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 23267, Oct. 28, 2011; Presidential Decree No. 23313, Nov. 23, 2011; Presidential Decree No. 23778, May 14, 2012; Presidential Decree No. 25033, Dec. 30, 2013; Presidential Decree No. 25358, May 22, 2014; Presidential Decree No. 26829, Dec. 31, 2015>
1. The following cases where there is no time to put a contract into a competition or it is found impractical to accomplish the purpose of the contract through a competition:
(a) Where a natural disaster occurs, military forces are to be mobilized for a military operation, a ceremony is urgently required, urgent relief from a flood or other emergency situation is required, raw material prices rapidly rise, or any other similar event occurs;
(b) Where it is necessary for security, such as the national security, a national defense plan, intelligence service, management of military installations, diplomatic relationship, or any other similar case is concerned, or it is necessary to keep a state agency’s activities confidential;
(c) Where the Administrator of the Defense Acquisition Program places an order with a business entity engaging that researched and developed standardized products for military use or a business entity subject to priority management under the Emergency Resources Management Act to manufacture and purchase standardized goods for military use (limited to items designated by the Administrator of the Defense Acquisition Program in cases of a business entity subject to priority management);
(d) Where it sells materials owned by the State for recovery from disasters to persons that have sustained damage caused by an emergency disaster;
2. The following cases where a fair competition is impractical, such as a particular person’s technique is required, or there is only one person who can produce the goods concerned:
(a) Where it is impracticable to identify who is liable for a defect that is likely to be discovered in the future from facilities in a construction project and it executes a contract with the immediately preceding or current contractor;
(b) Where a contract is made with the current contractor because confusion is likely to arise in work process otherwise or it is impracticable for two or more contractors to work together in an identical job-site;
(c) Where a contract for finish works is made with the immediately preceding or current contractor;
(d) Where it is impracticable in fact to conduct a competition because the project concerned is to be implemented in an area contiguous to the enemy or any other extraordinary area;
(e) Where it is impracticable in fact to conduct a competition because the construction project requires a patented construction method, new technology designated and publicly notified pursuant to Article 14 of the Construction Technology Promotion Act, a new technology certified or a technology tested pursuant to Article 7 of the Environmental Technology and Industry Support Act, or a new technology under Article 6-2 of the Electric Technology Management Act (limited to a new technology within the protection period designated under the aforementioned Act);
(f) Where a person who manufactured and supplied the goods concerned installs, assembles, or repairs such goods;
(g) Where it is required to procure goods in order to exchange parts of goods already procured or to extend facilities, and such goods are likely to be incompatible if they are manufactured and supplied by any person, other than the person that manufactured and supplied the goods concerned;
(h) Where it is intended to place an order to manufacture or purchase goods patented or goods registered as a utility model or design and no appropriate substitute therefor is available;
(i) Where the producer or possessor of the goods concerned is only one person and it is impracticable to accomplish the purpose of the project by placing an order to manufacture or purchase other goods;
(j) Where a contract is for survey, designing, supervision, special land survey, or training, which requires a particular person’s technique, quality, experience, or qualification; for services for scientific research with a particular person; or for designing services to be entered with a person who won a prize in an open design competition conducted pursuant to a relevant statute;
(k) Where it purchases real estate, such as a parcel of land or a building, from a particular person, or leases an asset to or from a particular person;
3. Where any of the following products produced by small and medium enterprises defined under subparagraph 1 of Article 2 of the Small and Medium Enterprises Promotion Act is manufactured or purchased from the small or medium enterprises concerned:
(b) Products, which have been certified for its quality pursuant to Article 13 of the Software Industry Promotion Act;
(c) Products completely developed with support under Article 9 (1) 3 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises, the purchase of which is agreed upon with a person relating to its initial demand;
(d) Products certified as new products under Article 16 of the Industrial Technology Innovation Promotion Act;
(e) Products that have been manufactured by applying a new technology certified or designated and publicly notified under Article 15-2 of the Industrial Technology Innovation Promotion Act, Article 7 of the Environmental Technology and Industry Support Act, or Article 14 of the Construction Technology Promotion Act, and the performance of which has been confirmed by the competent Minister at the stage of commercialization;
(f) Products designated and publicly notified as excellent goods for procurement under Article 18 of the Enforcement Decree of the Government Procurement Act;
(g) Goods with a joint trademark designated and publicly notified as excellent procurement under Article 18-2 of the Enforcement Decree of the Government Procurement Act (limited to cases where the prices of purchased goods are less than the prices publicly notified by the Minister of Strategy and Finance);
4. Where it executes a contract with any of the following organizations and entities that are established for the purpose of providing persons of distinguished service to the State or disabled persons with jobs or services for veterans or welfare services, for the manufacture or purchase of goods or for services (limited to goods directly produced by such organizations and entities and services directly provided by such organizations and entities), or sells or leases goods directly to any of such organizations and entities:
(a) A welfare factory in a collective village designated by the Minister of Patriots and Veterans Affairs for self-support of persons of distinguished service to the State;
(b) An association comprised of wounded persons, which is established pursuant to the Act on the Establishment of Associations by Persons, etc. of Distinguished Service to the State;
(c) A production facility designated as a facility of producing products by persons with severe disabilities under Article 9 (1) of the Special Act on the Preferential Purchase of Products Manufactured by Persons with Severe Disability;
(d) A social welfare corporation established pursuant to Article 16 of the Social Welfare Services Act;
5. The following cases where it is found inefficient to enter into a contract through a competition in the light of the purpose or nature of the contract, except the cases specified in subparagraphs 1 through 4:
(a) Any of the following contracts:
(i) Where a contract is for a construction project under the Framework Act on the Construction Industry (excluding specialized construction projects), the estimated price of which is not more than 200 million won, for a specialized construction project under the same Act, the estimated price of which is not more than 100 million won, and for a construction project under any other Acts or subordinate statutes related to construction projects, the estimated price of which is not more than 80 million won;
(ii) Where a contract is for the manufacture or purchase of goods or for services, the estimated price of which is not more than 20 million won;
(iii) Where a contract is for the manufacture or purchase of goods or for services and is executed with the small enterprises prescribed in Article 2 (2) of the Framework Act on Small and Medium Enterprises or the micro enterprises prescribed in Article 2 of the Act on the Protection of and Support for Micro Enterprises, the estimated price of which is not less than 20 million won and not more than 50 million won: Provided, That the contracts include those for the manufacture or purchase of goods or for services executed with those other than the small enterprises or micro enterprises in the case of falling under Article 30 (1) 3 and the proviso to paragraph (2) of the same Article;
(iv) Where a contract is for the manufacture or purchase of goods or for services and is relevant to academic research, cost accounting, construction technology, etc., which requires special knowledge, technology or qualification, among the contracts the estimated price of which is not less than 20 million won and not more than 50 million won;
(v) Where a contract is for the manufacture or purchase of goods or for services and is executed with female-owned businesses pursuant to subparagraph 1 of Article 2 of the Act on Support for Female-Owned Businesses or disabled persons’ enterprises pursuant to subparagraph 2 of Article 2 of the Promotion of Disabled Persons' Enterprise Activities Act, the estimated price of which is not less than 20 million won and not more than 50 million won;
(vi) Where a contract is not for a construction project nor for the manufacture or purchase of goods or for services, including lease contracts the estimated price of which is not more than 50 million won;
(b) Where an overseas diplomatic or consular mission purchases goods from a local market for its own use;
(c) Where it is found disadvantageous for the processing, loading and unloading, transportation, or storage of goods through a competition;
(d) Where it manufactures or purchases defense supplies under the Defense Acquisition Program Act from a defense contractor;
(e) Where it makes a contract for a national project with a person to whom such national project can be entrusted or delegated under any other statute;
(f) Where it makes a contract with another state agency or a local government.
(2) Where the head or a contracting officer of a central government agency intends to purchase a product specified under paragraph (1) 3, he/she may make a negotiated contract for such product only during three years (only during the period in which the certification or designation of the product remains valid) from the date on which the product is certified or designated by the competent Minister (including a person delegated by the competent Minister): Provided, That if the competent Minister extends the period of certification or designation, a negotiated contract may be made only for the extended period of certification or designation or for three years from the date of extension, whichever is shorter. <Newly Inserted by Presidential Decree No. 22282, Jul. 21, 2010>
(3) Where the head or a contracting officer of a central government agency makes a negotiated contract pursuant to paragraph (1) 4, he/she shall check the following matters: <Newly Inserted by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 22282, Jul. 21, 2010>
1. Whether the person with whom it is intended to make a contract meets the requirements for qualification;
2. Whether the person him/herself produces the goods to be procured through the negotiated contract.
(4) The head or a contracting officer of a central government agency may request the head of the competent government agency responsible for supervision over a person with whom he/she intends to make a negotiated contract to cooperate with him/her, as necessary for checking the matters specified in paragraph (3). <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 26829, Dec. 31, 2015>
(5) When a contracting officer makes a contract pursuant to paragraph (1) 1 (c) or (d), paragraph (1) 2, paragraph (1) 4 (b) or (c), or paragraph (1) 5 (c) or (e), he/she shall report the details thereof to the head of the central government agency to which he/she belongs, and the head of each central government agency shall notify the Board of Audit and Inspection of contracts made pursuant to paragraph (1) 2, out of the details so reported. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 22282, Jul. 21, 2010>
 Article 27 (Second Public Notice of Tender and Negotiated Contract)
(1) A negotiated contract may be made if a competitive tendering procedure results in either of the following cases:
1. Where only one tenderer participates in a competitive tendering procedure conducted pursuant to Article 10 and it is deemed obvious that only one person meets the requirements for qualification for participation in tendering under Article 12, even if tenders are invited by the second public notice under Article 20 (2);
2. Where tenders have been invited by the second public notice under Article 20 (2) but there is no tenderer or successful tenderer.
(2) The price and other terms and conditions of a negotiated contract made pursuant to paragraph (1) shall not differ from the price and other terms and conditions determined for the initial tendering procedure, except conditions regarding bonds and deadlines.
[This Article Wholly Amended by Presidential Decree No. 15614, Feb. 2, 1998]
 Article 28 (Negotiated Contract upon Successful Tenderer’s Refusal to Sign Contract)
(1) If a successful tenderer fails to sign a contract, a negotiated contract may be made in an amount not less than the successful tender price: Provided, That the price and other terms and conditions of such negotiated contract shall not differ from the price and other terms and conditions determined for the initial tendering procedure, except deadlines.
(2) Paragraph (1) shall apply mutatis mutandis where a successful tenderer fails to commence the performance of the contract within the specified period after concluding the contract or where the contract is cancelled or terminated because the successful tenderer fails to fulfill contractual obligations after commencing the performance of the contract. <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
 Article 29 (Division of Contract into Negotiated Contracts)
In cases of Articles 26 (1) 5 (d), 27, and 28, a contract may be divided into negotiated contracts with two or more persons in an amount not less than the budget price or successful tender price, only if it is possible to divide the budget price or successful tender price into prices for respective negotiated contracts. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
 Article 30 (Determination of Price with Quotations, etc.)
(1) Where the head or any contracting officer of a central government agency intends to make a negotiated contract, he/she shall obtain quotations therefor from at least two persons: Provided, That a quotation from one person may suffice in any of the following cases: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 24728, Sep. 17, 2013; Presidential Decree No. 25033, Dec. 30, 2013>
1. Where it makes a contract under Articles 26 (1) 2, 26 (1) 5 (e), 27, or 28;
2. Where the estimated price is not more than 20 million won: Provided, That the estimated price is not more than 50 million won, in cases of executing a contract with a female-owned business defined in subparagraph 1 of Article 2 of the Act on Support for Female-Owned Businesses or a disabled enterprise defined in subparagraph 2 of Article 2 of the Act on the Facilitation of Entrepreneurial Activities of Persons with Disabilities;
3. Where there is only one person that has submitted a quotation, although the E-Procurement System has been used for receiving quotations pursuant to the main sentence of paragraph (2), and it is apparently foreseen that only one person will submit a quotation, even if quotations are invited again.
(2) Where the head or any contracting officer of a central government agency intends to make a negotiated contract for the estimated price exceeding 20 million under Article 26 (1) 5 (a) (50 million won, in cases of executing a contract with a female-owned business or a disabled enterprise under the proviso to paragraph (1) 2), he/she shall require contractors to submit a quotation through the E-Procurement System: Provided, That the foregoing shall not apply to cases specified by Ordinance of the Ministry of Strategy and Finance as cases where it is impracticable to submit a quotation through the E-Procurement System in the light of the purpose or nature of the contract concerned. <Amended by Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 24728, Sep. 17, 2013; Presidential Decree No. 25679, Nov. 4, 2014>
(3) Where the head or any contracting officer of a central government agency intends to require contractors to submit a quotation through the E-Procurement System pursuant to paragraph (2), he/she shall publish information about the submission of such quotation through the E-Procurement System. <Newly Inserted by Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 24728, Sep. 17, 2013>
(4) Where the head or any contracting officer of a central government agency intends to make a negotiated contract under paragraph (2), he/she may place limitations on persons eligible for submitting a quotation, based on the location of the head office in the corporate register, as prescribed by Ordinance of the Ministry of Strategy and Finance, where it is deemed necessary in the light of the easiness and efficiency in the performance of the contract. In such cases, such limitations and the criteria for the limitations shall be clearly stated in the information published under paragraph (3). <Newly Inserted by Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 27475, Sep. 2, 2016>
(5) The Minister of Strategy and Finance may determine the criteria and detailed procedures for the submission of quotations through the E-Procurement System under paragraph (2) and necessary matters concerning the timing and period of the publication of information under paragraph (3). <Newly Inserted by Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 24728, Sep. 17, 2013>
(6) Where it is impossible to determine a contractor because the price quoted in quotations submitted pursuant to paragraph (1) or (2) does not fall into the range of the budget price (referring to the estimated price, inclusive of the value added tax, if the determination of a budget price is omitted under Article 7-2 (2)), quotations shall be requested again to determine the contract price. <Newly Inserted by Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 20319, Oct. 10, 2007>
(7) Notwithstanding paragraphs (1), (2), and (6), in cases prescribed by Ordinance of the Ministry of Strategy and Finance, the head or a contracting officer of a central government agency may allow bidders not to submit a quotation. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 27475, Sep. 2, 2016>
 Article 31 (Contract Price of Negotiated Contract for Continuing Construction Project)
The contract price for a phase subsequent to the current phase of a continuing construction project shall not exceed the amount computed by multiplying the budget price by the successful tender ratio for the first phase (referring to the ratio of the successful tender price or contract price to the budget price): Provided, That the foregoing shall not apply to cases specified by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 32 (Mutatis Mutandis Application of Provisions regarding Competitive Contracts)
Article 12 (1) and (3) through (6) shall apply mutatis mutandis to negotiated contracts. <Amended by Presidential Decree No. 25033, Dec. 30, 2013>
[This Article Wholly Amended by Presidential Decree No. 20319, Oct. 10, 2007]
CHAPTER IV TENDERING PROCEDURES AND PROCEDURES FOR DETERMINING SUCCESSFUL TENDER
 Article 33 (Public Notice of Tenders)
(1) When it is intended to call for competitive tenders, public notice thereof shall be given through the E-Procurement System, except as otherwise provided in this Decree: Provided, That such public notice may be published simultaneously through a daily newspaper or by other means, if necessary. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17688, Jul. 30, 2002; Presidential Decree No. 24728, Sep. 17, 2013>
(2) If it is necessary to rectify an error or a violation of any statute, discovered in a public notice of a tender given pursuant to paragraph (1), the head or a contracting officer of a central government agency shall extend the remaining period of public notice by at least five days to give public notice thereof. <Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007>
 Article 34 (Notification of Participation in Tendering)
Notwithstanding Article 33, if necessary for national security, the head or a contracting officer of a central government agency may notify matters specified in Article 36 to persons qualified for participation in a tendering procedure, as prescribed by Ordinance of the Ministry of Strategy and Finance, so that they can file an application for participation in the tendering procedure. In such cases, Article 35 shall apply mutatis mutandis to the timing to notify. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 35 (Timing to Give Public Notice of Tender)
(1) Public notice of a tender shall be given by not later than seven days from the day immediately before the deadline for the submission of tender documents. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 19483, May 25, 2006>
(2) Where it holds an on-site presentation session pursuant to Article 14-2 (1) or Article 14-2 (2) for a tendering procedure for a construction project, public notice thereof shall be given by not later than seven days from the day immediately before the scheduled date of the on-site presentation session: Provided, That public notice shall be given by not later than 30 days from the day immediately before the scheduled date of the on-site presentation session, where it is intended to pre-qualify persons eligible for participation in a tendering procedure for a construction project pursuant to Article 13. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 22282, Jul. 21, 2010>
(3) Where no on-site presentation session is to be held for a tendering procedure for a construction project, public notice shall be given before the period specified in any of the following subparagraphs, which shall be counted from the day immediately before the deadline for the submission of tender documents: <Amended by Presidential Decree No. 19483, May 25, 2006>
1. Seven days, where the estimated price is less than one billion won;
2. 15 days, where the estimated price is at least one billion won, but less than five billion won;
3. 40 days, where the estimated price is at least five billion won.
(4) Notwithstanding paragraphs (1) through (3), in any of the following cases, public notice may be given by not later than five days from the day immediately before the deadline for the submission of tender documents: <Amended by Presidential Decree No. 26321, Jun. 22, 2015>
1. In cases of the second public notice of the tender under Article 20 (2);
2. Where it is inevitable to make such public notice with advanced deadline to adjust the schedule in connection with any other national project;
3. Where it is necessary for an urgent event or urgent prevention of, or restoration from, a disaster, etc.;
4. Other cases similar to those prescribed in subparagraph 2 or 3.
(5) Notwithstanding paragraphs (1) and (4), public notice of a contract subject to negotiation under Article 43 shall be given by not later than 40 days from the day immediately before the deadline for the submission of a proposal: Provided, That such public notice may be given by not later than ten days from the day immediately before the deadline for the submission of a proposal in any of the following cases: <Newly Inserted by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 26321, Jun. 22, 2015>
1. In any of the cases falling under subparagraphs of paragraph (4);
2. If the estimated price is less than the publicly notified amount;
3. Deleted. <by Presidential Decree No. 26321, Jun. 22, 2015>
 Article 36 (Content of Public Notice of Tenders)
The following matters shall be stated in public notice of a tender: <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17546, Mar. 25, 2002; Presidential Decree No. 17688, Jul. 30, 2002; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 24728, Sep. 17, 2013; Presidential Decree No. 27475, Sep. 2, 2016>
1. Subject matters of the tender;
2. The place, date, and time of the tendering procedure or of the opening of tenders;
3. The place, date, and time of the on-site presentation session, the requirements for qualification for attending the presentation session, and whether it is compulsory to attend the presentation session in cases of the tendering procedure for a construction project;
3-2. The place, date, and time of the session for explaining the request for proposal and whether it is compulsory to attend the session in cases where a contract is subject to negotiations under Article 43 and the session for explaining the request for proposal is held;
4. Matters regarding requirements for qualification for participation in the tendering procedure;
4-2. Matters regarding the registration for participation in the tendering procedure and documents for tendering;
5. Matters regarding the tender bond and forfeiture of the tender bond to the National Treasury;
6. The method for determining a successful tenderer (including the date set for the submission of documents necessary for determining the successful tenderer and the date scheduled to notify the successful tenderer, where the successful tenderer is determined pursuant to Article 42 (1) or (4));
7. The commencement date and expiry date of the contract;
8. The place where terms and conditions proposed for the contract are publicly notified;
9. Matters regarding the invalidation of a tender under Article 39 (4);
10. The place in which documents regarding tendering are available for inspection and distribution and fees for the distribution of such documents;
11. The address, etc, of an agency from which additional information can be acquired;
12. The procedure and method for the submission of tender documents through the E-Procurement System or an information processing system designated and publicly notified by the head of the competent central government agency, where it is required to submit tender documents through such system under Article 39 (1);
12-2. The statement that tender documents shall be submitted by mail, if tenderers are required to submit tender documents by mail pursuant to Article 39 (2) and the address to which tender documents shall be dispatched;
13. The statement that a joint contract is acceptable (including restrictions on the qualification of members of the contracting consortium in cases of a joint contract under Article 72 (3) and (4)), if a join contract under Article 72 is acceptable, and the method of performance of such joint contract;
14. The statement that the tendering procedure is for the incidental tendering under Article 19, if it is the case;
15. Matters regarding the tendering procedure for alternatives or for a turnkey project in cases of a tendering procedure under Article 78;
15-2. Matters regarding reporting of irregularities or unfair practices related to tenders;
16. Other matters necessary for the tendering procedure.
[This Article Wholly Amended by Presidential Decree No. 15186, Dec. 31, 1996]
 Article 37 (Tender Bond)
(1) The tender bond provided for in Article 9 of the Act shall be at least 5/100 of the tender price (in cases of a tender made for unit price, the amount computed by multiplying the maximum of the expected quantity for each installment by the unit price). <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 25679, Nov. 4, 2014>
(2) The tender bond shall be paid in cash (including cashier’s checks issued by a postal office or a bank governed by the Banking Act; hereinafter the same shall apply) or by any of the following instruments for guarantee: <Amended by Presidential Decree No. 14973, Apr. 8, 1996; Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 15433, Jul. 10, 1997; Presidential Decree Nos. 15581 & 15582, Dec. 31, 1997; Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 16308, May 13, 1999; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 16943, Aug. 5, 2000; Presidential Decree No. 17585, Apr. 20, 2002; Presidential Decree No. 17791, Dec. 5, 2002; Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 18666, Dec. 31, 2004; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19806, Dec. 29, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 21578, Jun. 29, 2009; Presidential Decree No. 22493, Nov. 15, 2010; Presidential Decree No. 22626, Jan. 17, 2011; Presidential Decree No. 22637, Jan. 24, 2011; Presidential Decree No. 22638, Jan. 26, 2011; Presidential Decree No. 22660, Feb. 9, 2011; Presidential Decree No. 23778, May 14, 2012; Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 25358, May 22, 2014; Presidential Decree No. 25679, Nov. 4, 2014; Presidential Decree No. 26975, Feb. 11, 2016>
1. A letter of guarantee issued for payment by any financial institution under Article 46 (4) of the Enforcement Decree of the National Finance Act (hereinafter referred to as "financial institution") or by any foreign bank defined under the Banking Act;
3. A guarantee insurance policy issued by any insurance company under the Insurance Business Act;
4. A letter of guarantee issued for the payment of debts by any of the following institutions:
(a) Any mutual aid association under the Framework Act on the Construction Industry;
(b) The Electric Constructors' Financial Cooperative under the Electric Constructors' Financial Cooperative Act;
(c) The Korea Credit Guarantee Fund under the Credit Guarantee Fund Act;
(d) The Korea Technology Credit Guarantee Fund under the Korea Technology Finance Corporation Act;
(e) The Information and Communications Financial Cooperative under the Information and Communications Construction Business Act;
(f) The Engineering Financial Cooperative under the Engineering Industry Promotion Act;
(g) Any mutual aid association under the Industrial Development Act;
(h) The Software Financial Cooperative under the Software Industry Promotion Act;
(i) Any electric engineers’ association under the Electric Technology Management Act (limited to an association publicly notified by the Minister of Trade, Industry and Energy, consulting with the Minister of Strategy and Finance thereon);
(j) Any mutual aid association under the Construction Waste Recycling Promotion Act;
(k) Any mutual aid association under the Aggregate Extraction Act;
(l) Any credit guarantee foundation under the Regional Credit Guarantee Foundation Act;
(m) The Korea Tourism Association under the Tourism Promotion Act;
(n) A person designated as an institution providing guarantee services under Article 43 of the Defense Acquisition Program Act;
(o) Mutual aid cooperatives under the Construction Technology Promotion Act;
(p) The Mutual Aid Association of the Fire-Fighting Industry under the Fire-Fighting Industry Promotion Act;
(q) The Cultural Heritage Maintenance Association under the Act on Cultural Heritage Maintenance, etc.;
(r) The Korea Institute of Registered Architects under the Certified Architects Act;
(s) The Korea Federation of Small and Medium Business under the Small and Medium Enterprise Cooperatives Act;
(t) Any contents financial cooperative under Article 20-2 of the Content Industry Promotion Act;
5. A term deposit certificate issued by a financial institution or foreign financial institution specified in subparagraph 1 or by a postal office;
6. A beneficiary certificate issued by a trust business entity defined under the Financial Investment Services and Capital Markets Act;
7. A beneficiary certificate issued by a collective investment business entity under the Financial Investment Services and Capital Markets Act.
(3) Persons that may be fully or partially exempted from the payment of a tender bond under the proviso to Article 9 (1) of the Act are as follows: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 15433, Jul. 10, 1997; Presidential Decree No. 15581, Dec. 31, 1997; Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 16448, Jun. 30, 1999; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 18666, Dec. 31, 2004; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19463, Apr. 28, 2006; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 21565, Jun. 26, 2009; Presidential Decree No. 22638, Jan. 26, 2011; Presidential Decree No. 22660, Feb. 9, 2011; Presidential Decree No. 26108, Feb. 23, 2015>
1. The State agency or a local government;
2. Any public institution under the Act on the Management of Public Institutions;
3. A corporation with basic property, at least 50/100 of which has been contributed by the Government (including legal entities to which such property has been vested under an Act; hereinafter the same shall apply);
4. A cooperative, a cooperative joint venture corporation, or the federation of cooperatives under the Agricultural Cooperatives Act (including the Nonghyup Agribusiness Group Inc. and its subsidiaries); a fishing village fraternity, a fisheries cooperative, or the federation of cooperatives under the Fisheries Cooperatives Act; a forestry cooperative or the federation of cooperatives under the Forestry Cooperatives Act; a small and medium enterprise cooperative or the federation of cooperatives under the Small and Medium Enterprise Cooperatives Act; or the Korea Rural Community Corporation under the Korea Rural Community Corporation and Farmland Management Fund Act;
5. A corporation that meets the criteria determined by the Minister of Strategy and Finance, and is registered pursuant to a statute, including the Framework Act on the Construction Industry, the Electrical Construction Business Act, the Information and Communications Construction Business Act, the Construction Waste Recycling Promotion Act, the Aggregate Extraction Act, and the Act on Cultural Heritage Maintenance, etc.;
5-2. A person that meets the criteria determined by the Minister of Strategy and Finance, from among persons certified as competent for green technology or green business or accredited as companies specializing in green business pursuant to Article 32 (2) of the Framework Act on Low Carbon, Green Growth;
6. A person that is not suspected to avoid signing the contract after he/she is determined as the successful tenderer in a competitive tendering procedure.
(4) To ensure the payment of the amount equivalent to a tender bond when a cause arises to require a person fully or partially exempted from the tender bond under the provisions of paragraph (3) to pay the tender bond to the National Treasury under Article 9 (3) of the Act, the head or any contracting officer of a competent central government agency shall require such person to submit a document promising to make the payment.
 Article 38 (Forfeiture of Tender Bond to National Treasury)
(1) If a letter of guarantee or a similar instrument has been submitted as a tender bond pursuant to Article 37 (2) and a cause arises to forfeit the tender bond under Article 9 (3) of the Act, the head or a contracting officer of a central government agency shall notify the forfeiture to the relevant financial institution or guarantor under Article 37 (2) and the competent revenue collection officer or public official in charge of securities, and shall instruct the officer or public official in charge to collect the tender bond in cash or convert it into securities held by the Government, as prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 20720, Feb. 29, 2008>
(2) When a cause arises to forfeit a tender bond under Article 9 (3) of the Act from a person fully or partially exempted from the tender bond under the proviso to Article 9 (1) of the Act, the head or a contracting officer of a central government agency shall notify the forfeiture to the competent revenue collection officer, along with a document submitted to promise the payment pursuant to Article 37 (4), and shall instruct the officer to collect the amount equivalent to the tender bond in cash from the successful tenderer concerned. <Amended by Presidential Decree No. 18155, Dec. 11, 2003>
 Article 39 (Submission and Receipt of Tender Documents and Invalidation of Tender)
(1) Where a tenderer submits tender documents, the head or a contracting officer of a competent central government agency shall require the tenderer to submit such documents through the E-Procurement System Provided, That tenderers may be allowed to submit tender documents through an information processing system designated and publicly notified by the head of the competent central government agency in consultation with the Minister of Strategy and Finance thereon, in addition to the E-Procurement System. <Amended by Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 24728, Sep. 17, 2013>
(2) In any of the following cases, the head or a contracting officer of a central government agency may allow tenderers to submit tender documents at the place, date, and time specified in the public notice of a tender, in person or by mail, notwithstanding paragraph (1): <Amended by Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 24728, Sep. 17, 2013>
1. Where a contract is subject to an international tendering procedure under Article 4 of the Act;
2. Where the head of the competent central government agency deems it necessary because it is hard to use the E-Procurement System or on any other ground.
(3) No tenderer shall be permitted to replace, alter, or revoke tender documents already submitted: Provided, That the foregoing shall not apply to cases specified by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(4) A tender submitted by a person unqualified for participation in the competition under Articles 12 and 21, or a tender applicable to grounds specified by Ordinance of the Ministry of Strategy and Finance shall be invalid. <Amended by Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 40 (Opening of Tenders and Announcement of Successful Tenderer)
(1) The head or a contracting officer of a central government agency shall open tenders with tenderers present at the place, date, and time specified in the public notice of a tender. In such cases, if any tenderer is absent from the opening, a public official not involved in tendering may be instructed to attend the opening.
(2) When the head or a contracting officer of a central government agency determines a qualified person as a successful tenderer, after verifying the submitted tender documents and comparing tender prices on the valid tender documents with the budget price, he/she shall announce the successful tenderer without delay: Provided, That if it takes a long time to determine the successful tenderer because the capabilities of performing the contract shall be examined under Article 42 (1) or the tender prices of each tenderer, capabilities of performing a construction project and social responsibility, etc. shall be comprehensively examined under Article 42 (4) in order to determine the successful tenderer, the successful tenderer may be announced after undergoing such procedure. <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 26829, Dec. 31, 2015>
(3) Where tender documents are submitted through the E-Procurement System or an information processing system designated and publicly notified by the head of a central government agency, opening tenders and announcing a successful tenderer shall be conducted in accordance with the procedure and method specified in the public notice of a tender, notwithstanding paragraphs (1) and (2). <Amended by Presidential Decree No. 17688, Jul. 30, 2002; Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 24728, Sep. 17, 2013>
[This Article Wholly Amended by Presidential Decree No. 17019, Dec. 27, 2000]
 Article 41 (Determination of Successful Tenderer in Competitive Tendering Procedure as Source of Revenue)
In a competitive tendering procedure that becomes a source of revenue, a person who tenders the highest price, which shall not be less than the budget price, shall be determined as a successful tenderer.
 Article 42 (Determination of Successful Tenderer in Competitive Tendering Procedure Imposing Burden on National Treasury)
(1) In a competitive tendering procedure that imposes a burden on the National Treasury, the head or any contracting officer of a competent central government agency shall determine a successful tenderer by examining the capabilities of each tenderer to perform the relevant contract, starting from a tenderer whose tender price is the lowest and not more than the budget price. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 19483, May 25, 2006>
(2) Notwithstanding paragraph (1), where the estimated price in tendering procedure for goods (limited to cases of supplying goods without manufacturing them) is less than the publicly notified amount, the head or any contracting officer of a central government agency shall determine a person who tenders the lowest price, which shall not be more than the budget price, as a successful tenderer: Provided, That where it takes a long time to manufacture and supply goods or to perform a contract and it is deemed necessary to examine capabilities of performing the contract pursuant to paragraph (1), the successful tenderer may be determined in accordance with paragraph (1). <Newly Inserted by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 26321, Jun. 22, 2015>
(3) In a tendering procedure under Article 18, the head or any contracting officer of a central government agency shall determine a person who tenders the lowest price, which shall not be more than the budget price, as the successful tenderer, notwithstanding paragraph (1). <Newly Inserted by Presidential Decree No. 19483, May 25, 2006>
(4) In a tendering procedure for a construction project falling under any of the followings, the head or any contracting officer of a competent central government agency shall conduct a comprehensive examination on the tender prices of each tenderer, capabilities of performing a construction project and social responsibility, etc. and determine a person whose total points are the highest as the successful tenderer, notwithstanding paragraph (1): <Amended by Presidential Decree No. 26829, Dec. 31, 2015>
1. A construction project, the estimated price of which is at least 30 billion won;
2. A cultural heritage maintenance pursuant to subparagraph 1 of Article 2 of the Act on Cultural Heritage Maintenance, Etc., prescribed by the Administrator of the Cultural Heritage Administration.
(5) In order to examine capabilities of performing a contract pursuant to the paragraph (1), detailed criteria for examination shall be established in accordance with the criteria determined by the Minister of Finance and Economy for examination to determine qualification, taking into comprehensive consideration each tenderer’s past records of performance, technical capacity, financial position, sincerity in performing past contracts, reasonableness of prices for procuring materials and human resources, plan for management of subcontracts, plan for fulfilling working conditions of outsource workers, level of compliance with contractual order, level of quality of past construction works, tender price, etc., and the person found qualified as a result of the examination shall be determined as a successful tenderer: Provided, That the head of a central government agency him/herself may determine the criteria for examination in consultation with the Minister of Finance and Economy, where it is deemed necessary in light of the nature of a construction project or goods. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20720, Feb. 29, 2008>
(6) Where the head or any contracting officer of a central government agency intends to conduct the comprehensive examination pursuant to paragraph (4), he/she shall determine detailed criteria for examination in accordance with the standards determined by the Minister of Strategy and Finance, taking into comprehensive consideration result of the performance of contracts, plan for arranging manpower, efforts to fulfill social responsibilities and tender price of each tenderer, etc. and shall make the criteria available so that persons intending to participate in tendering can inspect the criteria before submitting a tender. <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 26829, Dec. 31, 2015>
(7) The head or any contracting officer of a central government agency may establish the committee for the comprehensive examination on tendering system (hereafter in this Article, referred to as the “Committee”) to comprehensively examine the tender prices of each tenderer, capabilities of performing a construction project and social responsibility, etc. pursuant to paragraph (4). <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 26829, Dec. 31, 2015>
(8) The Committee in each central government agency shall be comprised of public officials of the central government agency (including public officials of the requesting agency, where the execution of a contract for a construction project is requested to the Administrator of the Public Procurement Service pursuant to Article 15 of the Enforcement Decree of the Government Procurement Act) and persons that have abundant knowledge and experience in contracting, and detailed matters necessary for the formation and operation of the Committee shall be determined by the head of each central government agency. <Newly Inserted by Presidential Decree No. 19483, May 25, 2006>
 Article 43 (Execution of Contract through Negotiations)
(1) If the head or a contracting officer of a central government agency deems it necessary for ensuring the expertise or technical capacity in performing a contract for the supply of goods or services or for emergency, safety in public facilities, or any other grounds for the national security, he/she may execute the contract with a person deemed most favorable to the State through negotiations after evaluating proposals submitted by a number of suppliers, notwithstanding Article 42. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 18155, Dec. 11, 2003>
(2) Where the head or a contracting officer of a central government agency intends to execute a contract under paragraph (1), he/she shall clearly state in the public notice of a tender that the contract is to be made through negotiations. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996>
(3) The head or a contracting officer of a central government agency shall distribute necessary documents, including a request for proposal, to persons intending to participate in the procedure for executing a contract through negotiations. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996>
(4) The head or a contracting officer of a central government agency may substitute the distribution of necessary documents under paragraph (3), including a request for proposal, by publishing necessary documents, including a request for proposal, through the E-Procurement System. <Newly Inserted by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 24728, Sep. 17, 2013>
(5) If the head or a contracting officer of a central government agency deems it necessary when he/she intends to execute a contract pursuant to paragraph (1), taking into consideration the nature and scale of a contract, he/she may holds a presentation session regarding the request for proposal, etc. <Newly Inserted by Presidential Decree No. 19483, May 25, 2006>
(6) Where the head or a contracting officer of a central government agency holds a presentation session regarding a request for proposal, etc. pursuant to paragraph (5), he/she may allow only persons who attend the presentation session to participate in the procedure for executing the contract. <Newly Inserted by Presidential Decree No. 19483, May 25, 2006>
(7) Where the head or a contracting officer of a central government agency intends to execute a contract through negotiations pursuant to paragraph (1), he shall determine detailed criteria in accordance with the standards determined for the execution of contracts by the Minister of Finance and Economy, taking into comprehensive consideration past records of performance, technical capacity, the plan for performance of the project, financial position, tender price, etc. of each person that intends to execute the relevant contract, and shall make the criteria available for inspection so that persons who intend to execute the contract can inspect the criteria: Provided, That the criteria and procedure for the execution of a contract shall be determined by the Commissioner of the Defense Acquisition Program Administration, if he/she intends to execute the contract through negotiations for the purpose of implementing a project for the improvement of defense capacity under the Defense Acquisition Program Act. <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20720, Feb. 29, 2008>
(8) Where the head or a contracting officer of a central government agency intends to evaluate proposals pursuant to paragraph (1), he/she shall forward the proposals to the committee for the evaluation of proposals (hereinafter referred to as the “Committee” in this Article) for examination: Provided, That the examination by the Committee may be substituted by the examination by the team for the evaluation of proposals for research and development projects under Article 18 (8) of the Defense Acquisition Program Act, where it is intended to execute a contract through negotiations in regard to a project for the improvement of defense capacity under the aforesaid Act. <Newly Inserted by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 25033, Dec. 30, 2013>
(9) The Committee in each central government agency shall be comprised of public officials of the central government agency and persons that have abundant knowledge and experience in contracting, and detailed matters necessary for the formation and operation of the Committee shall be determined by the head of each central government agency. <Newly Inserted by Presidential Decree No. 19483, May 25, 2006>
 Article 43-2 (Methods for Making Contracts for Knowledge-Based Projects)
(1) Where the head or a contracting officer of a central government agency executes a contract for a project specified in any of the following projects which generates a higher value by utilizing highly intensive technology, such as information science and technology, (hereinafter referred to as “knowledge-based projects”), he/she may apply the method of executing a contract through negotiations preferentially, pursuant to the Article 43: <Amended by Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 21692, Aug. 18, 2009; Presidential Decree No. 21698, Aug. 21, 2009; Presidential Decree No. 22626, Jan. 17, 2011; Presidential Decree No. 25358, May 22, 2014>
1. An engineering project under subparagraph 3 of Article 2 of the Engineering Industry Promotion Act: Provided, That the foregoing shall be limited to cases where the level of difficulty is high or highly advanced technology is required for construction technology services under subparagraph 3 of Article 2 of the Construction Technology Promotion Act;
2. An information and communications project under subparagraph 2 of Article 2 of the Information and Communications Technology Industry Promotion Act;
3. A project for informatization under subparagraph 2 of Article 3 of the Framework Act on National Informatization;
4. A project for industrial design under Article 2 of the Industrial Design Promotion Act;
5. The cultural industry under subparagraph 1 of Article 2 of the Framework Act on the Promotion of Cultural Industries;
6. The online digital content industry under subparagraph 3 of Article 2 of the Online Digital Content Industry Development Act;
7. Scientific research services for basic science or applied science;
8. Other projects that the head of a central government agency deems knowledge-based.
(2) Where the head or a contracting office of a central government agency intends to execute a contract through negotiations pursuant to paragraph (1), he/she shall determine detailed criteria in accordance with the method for the evaluation of proposals and the procedure for negotiations, as determined by the Minister of Finance and Economy, to execute the contract. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 18155, Dec. 11, 2003]
 Article 44 (Determination of Successful Tenderer according to Quality, etc.)
(1) Where the head or a contracting officer of a central government agency deems it necessary for a contract for the manufacture or purchase of goods, he/she shall determine a person that tenders the most economic price, which is not more than the budget price, as a successful tenderer, taking the quality, etc. into comprehensive consideration, in addition to tender prices for the relevant goods, notwithstanding Article 42. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000>
(2) Where the head or a contracting officer of a central government agency intends to determine a successful tenderer under paragraph (1), he/she shall determine the criteria for evaluating quality, etc. of the relevant goods before tendering and shall make the criteria available to participants in tendering for inspection. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000>
 Article 45 (Determination of Successful Tenderer When Selling Off Large Quantity of Goods)
Where it is intended to sell off the large quantity of goods in installments according to the desired quantity pursuant to Article 17 (1), the tenderer who tenders the highest price, from among persons who tender a unit price not less than the budget price, shall be determined as a successful tenderer each time until the desired quantity reaches the quantity to be sold off, notwithstanding Article 41.
 Article 46 (Determination of Successful Tenderer for Manufacturing and Purchasing Large Quantity of Goods)
Where it is intended to manufacture and purchase the large quantity of goods in installments according to the desired quantity pursuant to Article 17 (2), the tenderer that tenders the lowest price, among persons that tender a unit price not more than the budget price, shall be determined each time as a successful tenderer until the quantity to be manufactured and purchased reaches the required quantity, notwithstanding Article 42. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 18155, Dec. 11, 2003>
 Article 47 (Determination of Successful Bidder where Identical Price, Etc. Tendered)
(1) If an identical price that could be determined as the successful tender price has been tendered by two (referring to the top two persons with the identical total points which are the greatest, in cases of the tendering for a construction project pursuant to Article 42 (4)) or more persons in any of the following cases, the head or a contracting officer of the competent central government agency shall determine a successful tenderer by the method prescribed in any of the following subparagraphs: <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 26829, Dec. 31, 2015>
1. Where a general competitive tendering procedure is conducted according to a desired quantity under Article 17: The tenderer that has tendered the greatest quantity shall be determined as the successful tenderer, but the successful tenderer shall be determined by drawing lots, if even the tendered quantity is identical;
2. Where the successful tenderer is determined in accordance with Article 42 (1): The person that obtains the highest points as a result of the examination of the capabilities of performance shall be determined as the successful tenderer, but if the results of the examination of the capabilities of performance are identical, the successful tenderer shall be determined by drawing lots;
3. Where the successful tenderer is determined in accordance with Article 42 (2): The successful tenderer shall be determined by drawing lots;
4. Where the successful tenderer is determined in accordance with Article 42 (3): The person whose specifications or technology is superior shall be determined as the successful tenderer, but if the results of evaluation of specifications or technology are identical, the successful tenderer shall be determined by drawing lots;
5. Where the successful tenderer is determined in accordance with Article 42 (4): The person whose total point of capabilities of performing a construction project and social responsibility is the highest shall be determined as the successful tenderer; if the total points are identical, the successful tenderer shall be determined according to the standard determined by the Minister of Strategy and Finance by reflecting the scale, characteristic, etc. of the construction.
(2) If a tenderer is absent from the place where lots are drawn or a tenderer does not draw a lot in cases of paragraph (1), a public official that is not involved in tendering may be authorized to draw a lot on behalf of such tenderer.
(3) Deleted. <by Presidential Decree No. 19483, May 25, 2006>
CHAPTER V EXECUTION AND PERFORMANCE OF CONTRACTS
 Article 48 (Preparation of Written Contract)
(1) The form of a written contract that the head or a contracting officer of a central government agency shall prepare pursuant to Article 11 (1) of the Act and other necessary matters shall be prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(2) The public official in charge of a contract shall print his/her name and affix his/her seal on the contract: Provided, That printing his/her name and affixing his/her seal may be substituted by affixing his/her signature, if a contract is executed with a foreigner or if any other exceptional situation exists.
 Article 48-2 (Contracts for Overseas Construction Projects)
(1) When the head or a contracting officer of a central government agency executes a contract for an overseas construction project, such contract shall be made in local currency: Provided, That a contract may be executed in Korean won or U.S. dollar by agreement between parties to the contract, if it is impracticable to execute the contract in local currency.
(2) When the head or a contracting officer of a central government agency executes a contract for an overseas construction project, he/she may prescribe special exceptions regarding the adjustment to the contract price, taking into consideration foreign exchange rates, international practices, etc.
[This Article Newly Inserted by Presidential Decree No. 21202, Dec. 31, 2008]
 Article 49 (Omission of Preparation of Written Contract)
The Cases where preparing a written contract may be omitted under the proviso to Article 11 (1) of the Act are as follows: <Amended by Presidential Decree No. 16548, Sep. 9, 1999>
1. Where the amount of the contract to be executed is not more than 30 million won;
2. Where a transaction is made through an auction;
3. Where the buyer acquires the goods in return for the immediate payment of the price for the goods sold;
4. Where a contract is executed between state agencies or local governments or between a state agency and a local government;
5. Where it is unnecessary to make a written contract in the nature of the contract, such as the supply of electricity, gas, or water.
 Article 50 (Contract Bond)
(1) The head or a contracting officer of a central government agency shall require a contractual party to pay at least 10/100 of the contract price as the contract bond under Article 12 of the Act.
(2) If it is intended to permit a contractual party to perform a unit price contract in installments, such contractual party shall be required to pay at least 10/100 of the amount computed by multiplying the maximum of the expected quantity for each installment by the agreed unit price as the contract bond, notwithstanding paragraph (1).
(3) The counter-party to a long-term continuing contract shall be required to pay at least 10/100 of the amount of the entire construction project or total production additionally stated in the initial contract. In such cases, the contract bond shall be deemed the contract bond for the entire construction project or total production, and the portion equivalent to the contract price performed each year out of the initial contract bond shall be returned, when the relevant annual contract expires. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 20319, Oct. 10, 2007>
(4) and (5) Deleted. <by Presidential Decree No. 16548, Sep. 9, 1999>
(6) The cases where a person may be fully or partially exempted from the contract bond under the proviso to Article 12 (1) of the Act are as follows: <Amended by Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 22660, Feb. 9, 2011>
1. Where a contract is made with a person specified in Article 37 (3) 1 through 4 and 5-2;
2. Deleted; <by Presidential Decree No. 19782, Dec. 29, 2006>
3. Where the amount of the contract to be executed is not more than 50 million won;
4. Where it is deemed improper to collect a contract bond, according to contractual customs generally accepted as fair and reasonable;
5. Where it is intended to purchase parts for facilities, machines, or equipment already imported from abroad and it is impracticable to purchase the parts from any person, other than the supplier concerned.
(7) A contract bond shall be paid in cash or by a letter of guarantee or other instrument specified in subparagraphs of Article 37 (2). <Amended by Presidential Decree No. 15614, Feb. 2, 1998>
(8) When the counter-party to a contract requests to allow him/her to replace a contract bond already paid by securities specified in Article 192 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act or in cash with a letter of guarantee or other instrument specified in Article 37 (2) 1 through 5 for a particular reason, the party may be allowed to submit such letter of guarantee or other instrument, as replacement, in an amount equal to or more than the value of the contract bond previously paid. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 20947, Jul. 29, 2008>
(9) Deleted. <by Presidential Decree No. 15614, Feb. 2, 1998>
(10) Article 37 (4) shall apply mutatis mutandis where a person is fully or partially exempted from a contract bond under paragraph (6) 1 through 3 and 5. <Amended by Presidential Decree No. 18155, Dec. 11, 2003>
(11) Deleted. <by Presidential Decree No. 17019, Dec. 27, 2000>
[This Article Wholly Amended by Presidential Decree No. 15186, Dec. 31, 1996]
 Article 51 (Forfeiture of Contract Bond to National Treasury)
(1) When the counter-party to a contract fails to perform his/her contractual obligations without justification, the head or a contracting officer of the competent central government agency shall transfer the contract bond under Article 50 (including the guarantee amount under Article 52 (1) 2 or 3; hereinafter the same shall apply) to the National Treasury by forfeiture under Article 12 (3) of the Act. Article 75 (1) shall apply mutatis mutandis to such cases. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000>
(2) Paragraph (1) shall apply mutatis mutandis to cases where the counter-party to a long-term continuing contract does not sign a contract for the second or subsequent phase of the construction project or of the manufacture, etc. of goods under the latter part of Article 69 (2) or Article 69 (3). <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996>
(3) A contract bond, which shall be forfeited to the National Treasury under paragraph (1) or (2), shall not be offset against an amount payable as progress payment: Provided, That if a contract bond has been fully or partially exempted, the contract bond that shall be forfeited to the National Treasury may be offset against an amount payable as progress payment. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 19483, May 25, 2006>
(4) Article 38 (1) and (2) shall apply mutatis mutandis where a contract bond shall be forfeited to the National Treasury.
(5) Where a unit price contract under Article 22 of the Act is performed in installments, the deposits for the completely performed part of the contract, from among the original contract deposits, shall not be forfeited to the National Treasury. <Newly Inserted by Presidential Decree No. 25033, Dec. 30, 2013>
 Article 52 (Performance Bond for Contract for Construction Project)
(1) Where the head or a contracting officer of a central government agency intends to execute a contract for a construction project, he/she shall require the counter-party to the contract to guarantee the performance of the contract by any of the following methods: Provided, That if the head or a contracting officer of a central government agency deems it necessary in the nature of a contract for a construction project, he/she may limit the method for guaranteeing the performance of the contract to the method specified in subparagraph 3, and shall require the counter-party to a contract for a construction project specified in Article 42 (4) or Chapter VI or VIII to guarantee the performance of the contract only by the method specified in subparagraph 3 without exception: <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 22282, Jul. 21, 2010>
1. Deleted; <by Presidential Decree No. 22282, Jul. 21, 2010>
2. Payment of at least 15/100 of the contract price as the contract bond;
3. Submission of a performance bond for the construction project (under which the institution that guarantees the performance of contractual obligations arising from the relevant construction project shall guarantee to pay at least 40/100 of the contract price (or 50/100 in cases of a contract for a construction project awarded in an amount of less than 70/100 of the budget price) on behalf of the counter-party to the contract, if the counter-party fails to perform his/her contractual obligations).
(2) If the counter-party to a contract requests the head or a contracting officer of the competent central government agency to permit him/her to change the method for guaranteeing the performance of the contract, and where the performance of the contract has been guaranteed pursuant to the body of paragraph (1), the head or a contracting officer of the central government agency may permit the counter-party to change the method only once. <Newly Inserted by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 22282, Jul. 21, 2010>
1. through 3. Deleted. <by Presidential Decree No. 22282, Jul. 21, 2010>
(3) Deleted. <by Presidential Decree No. 22282, Jul. 21, 2010>
(4) The Minister of Strategy and Finance may determine necessary matters regarding the submission, etc. of a performance bond under paragraph (1). <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(5) Paragraphs (1) through (4) may apply mutatis mutandis to service contracts. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19483, May 25, 2006>
 Article 53 (Purchase of Non-life Insurance)
(1) If the head or a contracting officer of a central government agency deems it necessary in executing a contract, he/she may have the subject matter of the contract insured by non-life insurance (including the mutual aid program for damage under Article 56 (1) 5 of the Framework Act on the Construction Industry; hereinafter the same shall apply) or may require the counter-party to the contract to purchase the non-life insurance. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 20319, Oct. 10, 2007>
(2) The Minister of Strategy and Finance may determine necessary matters regarding the purchase of non-life insurance under paragraph (1). <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 54 (Supervision)
(1) "A contract specified by Presidential Decree" in the proviso to Article 13 (1) of the Act means either of the following contracts: <Amended by Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 25358, May 22, 2014>
1. A contract for a construction project that shall be performed compulsorily under construction management or supervision under Article 39 (2) of the Construction Technology Promotion Act, Article 12 of the Electric Technology Management Act, or any other statute regarding construction works;
2. A contract for manufacturing or any other work that cannot be performed under the supervision specified in Article 13 (1) of the Act because special knowledge or technology is required or due to other extenuating circumstances.
(2) In order to prevent defective performance of a contract for a construction project in an amount of less than 70/100 of the budget price, the head or a contracting officer of a central government agency may increase the number of supervisory public officials (referring to the number of construction managers or supervisors under the Construction Technology Promotion Act, etc. for contracts for a construction project, among the contracts referred to in paragraph (1)) by not more than 50/100 of the standard number of placements. <Newly Inserted by Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 25358, May 22, 2014>
(3) The expenses additionally incurred in supervision or consulting under paragraph (2) may be covered with the difference between the successful tender price and the budget for the relevant construction project (referring to the difference between the budget price and the successful tender price). <Newly Inserted by Presidential Decree No. 18155, Dec. 11, 2003>
 Article 55 (Inspection)
(1) An inspection under Article 14 (1) of the Act shall be completed within 14 days from the date on which the notice of completion of performance of the relevant contract is given by the counter-party to the contract: Provided, That the period for inspection may be extended by not more than seven days in cases specified by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(2) If an inspection under paragraph (1) is conducted on a service contract for research and designing, an examination shall be also conducted to ascertain whether the total project cost for the research and designing project computed by the counter-party to the service contract is reasonable;
(3) “A contract specified in Presidential Decree” in the proviso to Article 14 (1) of the Act means a contract defined in any subparagraph of Article 54 (1). <Amended by Presidential Decree No. 18155, Dec. 11, 2003>
(4) When an inspection is conducted on the performance of working design services under paragraph (1), where contracts have been executed separately for basic plans (including works relating to a feasibility study; hereinafter the same shall apply) and working plans, the comparison between the total project cost on the basic plans and the total project cost on the working plans shall be made to find whether the total project cost computed on the working plans is reasonable. In such cases, if there is any difference between the total project cost on the basic plans and the total project cost on the working plans, the counter-party to the service contract for the working plans shall be required to submit data explaining the reasons therefor.
(5) If an inspection is not completed within the period specified in the provisions of paragraph (1) due to natural disaster or any other force majeure event, the inspection shall be completed within three days from the date on which such event ceases to exist.
(6) When the head or a contracting officer of a central government agency discovers as a result of an inspection conducted pursuant to Article 14 (1) of the Act that the performance of the counter-party to a contract violates all or some of terms and conditions of the contract or is inappropriate, he/she shall require the counter-party to take measures necessary for rectification without delay. In such cases, the period specified in paragraph (1) shall begin on the date on which the notice of completion of rectification is given by the counter-party.
(7) An inspection of work progress for the progress payment under the Article 58 (3) may be substituted by the confirmation of supervision records prepared by a person that performs supervision under Article 13 of the Act: Provided, That such inspection shall be conducted in the manner of the inspection under Article 14 of the Act once every three times. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999>
 Article 56 (Omission of Preparation of Inspection Record)
The cases for which preparing inspection records may be omitted under the proviso to Article 14 (2) of the Act are as follows: <Amended by Presidential Decree No. 16548, Sep. 9, 1999>
1. Where the contract price is not more than 30 million won;
2. Where the contract is for a sale;
3. Where it is not necessary to prepare inspection records in the nature of contract, such as a contract for the supply of electricity, gas, or water.
 Article 56-2 (Goods Subject to Exemption from Inspection)
The goods that may be exempted from inspection under Article 14 (3) of the Act are as follows: Provided, That the foregoing shall not apply where a contract contains the condition that inspections shall be conducted on the grounds that it is necessary to inspect goods for the protection of life, safety, and health of citizens or to examine the quality due to the use of defective materials or discovery of many defects: <Presidential Decree No. 27401, Jul. 28, 2016; Presidential Decree No. 27807, Jan. 26, 2017>
1. A product certified pursuant to Article 15 of the Industrial Standardization Act;
2. A product manufactured by an enterprise, etc., and an individual selected as a prize winner pursuant to Article 31-4 (2) of the Industrial Standardization Act;
3. A product manufactured by a person that meets the standards publicly notified by the Administrator of the Public Procurement Service for the evaluation of capabilities of quality control pursuant to Article 3-4 of the Government Procurement Act.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 57 (Concurrent Performance of Supervision and Inspection)
No person shall concurrently perform the supervision under Article 54 and the inspection under Article 55: Provided, That the foregoing shall not apply to any of the following cases: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 18155, Dec. 11, 2003>
1. Where it is significantly impracticable to authorize any person other than a person that performs supervision to conduct inspections, where such inspections require a special technique;
2. Where it is hard to confirm performance unless an inspection is conducted without delay after the contract for a construction project is performed for maintenance or repair;
3. Where the contract is for the manufacture of goods or for a construction project, the contract price of which is not more than 300 million won;
4. Where the contract is for a construction project specified in Article 54 (1) 1;
5. Where a work progress inspection is substituted with confirmation of supervision records under Article 55 (7).
 Article 58 (Payment of Price)
(1) The price for a contract that imposes a burden on the National Treasury under Article 15 (2) of the Act shall be paid within five days from the date on which the counter-party to the contract submits an invoice therefor after the inspection under Article 55 is completed. In such cases, parties to a contract may agree on a special condition that the deadline for payment of a price may be extended by not more than five days. <Amended by Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 21578, Jun. 29, 2009>
(2) If it is impossible to pay a price by the deadline for payment due to a natural disaster or any other force majeure event, the price shall be paid within three days from the date on which the event ceases to exist. <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
(3) Where the price for each portion already performed or supplied shall be paid under Article 15 of the Act, such price shall be paid once at least every 30 days, taking into account the contract quantity, prospects of performance, the period of performance, etc., notwithstanding paragraph (1). <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
(4) In order to pay a price under paragraph (3), the counter-party to the contract may be required to submit an invoice for the payment of the price by not later than the date the inspection is completed under Article 55, and the price shall be fixed and paid within five days from the completion date of the inspection, according to the results of the inspection: Provided, That if the counter-party to a contract submits an invoice for the payment of a price after the completion date of inspection, the price shall be paid within five days from the date the invoice is submitted. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 21578, Jun. 29, 2009>
(5) If the head or a contracting officer of a central government agency finds that an invoice submitted for the payment of a price under paragraph (1) or (4) is completely or partially wrong, he/she may return the invoice to the counter-party to the contract, clearly stating the reasons for returning it. In such cases, the period from the date of return and the date on which another invoice is submitted shall not be included in the period for payment specified in paragraph (1) or (4). <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
(6) Official holidays and Saturdays shall be excluded from the period calculated pursuant to paragraph (1) or (2). <Newly Inserted by Presidential Decree No. 19782, Dec. 29, 2006>
 Article 59 (Interest on Past Due Payment of Price)
If the head or a contracting officer of a central government agency fails to pay a price by the deadline for the payment of the price under Article 58 after he/she receives an invoice for the payment of the price (or within 20 days from the date on which the relevant budget is allocated under the National Finance Act after the commencement of the following fiscal year, in cases of a contract imposing obligations on the National Treasury), he/she shall pay an amount computed by multiplying the payable amount by the number of days from the date immediately following the deadline for payment until the date on which the price is paid (hereinafter referred to as "the number of days during which payment is delayed”) and the average interest rate for loans from financial institutions at the time when the delay occurs (referring to the average interest on loans according to the Monthly Report of Statistics published by the Bank of Korea) as interest therefor. <Amended by Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 19806, Dec. 29, 2006>
 Article 60 (Warranty Period for Defects under Contract for Construction Project)
(1) Where the head or any contracting officer of a central government agency executes a contract for a construction project, he/she shall determine the warranty period for defects, during which the repair of defects in the relevant construction project shall be guaranteed for the period, specified by Ordinance of the Ministry of Strategy and Finance, of at least one year, but not exceeding ten years from the date he/she acquires the complete possession of the subject matter of the contract or the date the final inspection is completed, whichever comes first (referring to the date he/she acquires the partial possession of the subject matter of the contract or the date he/she begins to manage and use the subject matter in accordance with public announcement, whichever comes first, where the subject matter of the contract for the construction project has been managed or used after the partial completion of the contract for the construction project): Provided, That the foregoing shall not apply to cases specified by Ordinance of the Ministry of Strategy and Finance where the repair of defects is unnecessary in the nature of a construction project. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 25033, Dec. 30, 2013; Presidential Decree No. 25679, Nov. 4, 2014>
(2) In cases of a long-term continuing project, the warranty period for defects under paragraph (1) shall be stipulated for each annual contract: Provided, That in cases of a construction project in which it is impracticable to identify the liability for defects for each annual contract, the warranty period for defects shall be stipulated for the entire construction project when the initial contract is executed. <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999>
 Article 61 (Inspection of Defects)
(1) The head or a contracting officer of a central government agency shall inspect defects not less than twice a year on a regular basis during the warranty period for defects under Article 60 or shall delegate his/her authority to public officials in the government agency to conduct inspections.
(2) If an inspection of defects under the provisions of paragraph (1) requires special knowledge or technology or such an inspection is conducted on a facility specified in subparagraph 1 of Article 2 of the Special Act on the Safety Control and Maintenance of Establishments and built through a construction project awarded for the contract price of less than 86/100 of the budget price, the head or a contracting officer of the competent central government agency shall request a specialized institution to conduct inspections as necessary. <Amended by Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 28586, Jan. 16, 2018>
(3) A person who inspects defects pursuant to paragraph (1) or (2) shall make a defect inspection report: Provided, That a defect inspection report may be omitted in cases of a contract for a construction project, if the contract price is not more than 30 million won. <Amended by Presidential Decree No. 16548, Sep. 9, 1999>
 Article 62 (Warranty Bond)
(1) A warranty bond under Article 18 of the Act shall not be less than 2/100 nor more than 10/100 of the contract price, as prescribed by Ordinance of the Ministry of Strategy and Finance: Provided, That a contractor may be exempted from the payment of a warranty bond in cases specified by Ordinance of the Ministry of Strategy and Finance as cases for which the repair of defects is not necessary in the nature of a construction project. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(2) The head or a contracting officer of a central government agency shall require a contractor to pay the warranty bond under paragraph (1) until before the price for the relevant construction project is paid after the final inspection of the construction project and shall keep the warranty bond during the warranty period for defects under Article 60.
(3) In cases of a long-term continuing project, the warranty bond under paragraphs (1) or (2) shall be paid for each annual contract: Provided, That in cases of a construction project where it is impracticable to identify the liability for defects for each annual contract, the contractor shall be required to pay the warranty bond after the final inspection on the entire construction project is completed. <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999>
(4) The cases where a person may be exempted from a warranty bond under the proviso to Article 18 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
1. Deleted; <by Presidential Decree No. 22282, Jul. 21, 2010>
2. Where a contract is made with a person specified in Article 37 (3) 1 through 4.
(5) Articles 37 (2) and (4) and 38 shall apply mutatis mutandis to the payment of a warranty bond and the forfeiture of a warranty bond to the National Treasury. <Amended by Presidential Decree No. 15614, Feb. 2, 1998>
 Article 63 (Direct Use of Warranty Bonds)
(1) When it is intended to use a warranty bond directly for the repair of relevant defects under the proviso to Article 18 (3) of the Act, the warranty bond may be managed separately in accounts for non-revenue and non-expenditure without necessarily transferring it into a revenue account. <Amended by Presidential Decree No. 26829, Dec. 31, 2015>
(2) The procedure for the direct use of warranty bonds under paragraph (1) shall be prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 64 (Adjustment of Contract Price According to Price Fluctuation)
(1) In any of the following cases, the head or a contracting officer of a central government agency shall adjust the amount of a contract (referring to the amount of the entire construction project or the total production, etc. additionally stated in the intial contract: hereafter the same shall apply in this Chapter) after 90 days from the date on which a contract that imposes a burden on the National Treasury (referring to the initial contract in cases of a contract for a long-term continuing project or the long-term continuing manufacture, etc.) is made under Article 19 of the Act, as prescribed by Ordinance of the Ministry of Strategy and Finance. In such cases, the contract price shall not be adjusted again within 90 days from the reference date of adjustment (referring to the date on which the cause of adjustment arises; hereafter the same shall apply in this Article). <Amended by Presidential Decree No. 15661, Feb. 24, 1998; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 18359, Apr. 6, 2004; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 20720, Feb. 29, 2008>
1. Where the adjustment rate of goods, computed in accordance with a formula prescribed by Ordinance of the Ministry of Strategy and Finance on the tender date as reference date (referring to the date of execution of a contract in cases of a negotiated contract or the immediately preceding reference date of adjustment in cases of adjustment of a contract price for the second and subsequent contracts; hereafter the same shall apply in this paragraph and paragraph (6)), increases or decreases by not less than 3/100;
2. Where the index adjustment rate, computed by the formula prescribed by Ordinance of the Ministry of Strategy and Finance on the tender date as its reference date, increases or decreases by not less than 3/100.
(2) When the head or a contracting officer of a central government agency adjusts a contract price pursuant to paragraph (1), he/she shall apply one of the methods specified in paragraph (1) to an identical contract and shall clearly stipulate in the written contract that the contract price shall be adjusted by the method specified in paragraph (1) 1, unless the counter-party to the contract wants to apply the method specified in paragraph (1) 2. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005>
(3) If an advance payment has been made to the counter-party to a contract under the provisions of Article 40 of the Enforcement Decree of the Management of the National Funds Act, the amount calculated by the formula prescribed by Ordinance of the Ministry of Strategy and Finance shall be deducted from the increased amount computed in accordance with paragraph (1). <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17824, Dec. 30, 2002; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 20720, Feb. 29, 2008>
(4) If it is impracticable to procure goods by applying paragraph (1) when the head or a contracting officer of a central government agency purchases goods, the highest selling price of which shall be publicly notified in accordance with relevant statutes, or in any other case, he/she may prescribe provisions different from paragraph (1) regarding the adjustment of a contract price at the time of execution of the contract. <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999>
(5) If it is deemed impracticable to perform a contract due to a natural disaster or rapid rise of raw material prices in applying paragraph (1), unless the contract price is adjusted within the period during which the adjustment is restricted, the contract price may be adjusted within 90 days from the date of execution of the contract or from the immediately preceding reference date of adjustment, notwithstanding the aforementioned paragraph. <Newly Inserted by Presidential Decree No. 18359, Apr. 6, 2004; Presidential Decree No. 19035, Sep. 8, 2005>
(6) Notwithstanding paragraph (1), the head or a contracting officer of a central government agency shall adjust the contract price only for the material concerned, if the increase or decrease rate of the price for the material, computed on the tender date as its reference date due to the fluctuation of the price for the material in particular specifications (applicable only to a material, the cost of which exceeds 1/100 of the aggregate of material cost, labor cost, and expenses that constitute the project cost) for the contract for a construction project is not less than 15/100. <Amended by Presidential Decree No. 19806, Dec. 29, 2006; Presidential Decree No. 22282, Jul. 21, 2010>
(7) The head or a contracting officer of a central government agency shall adjust a contract price, when the requirements for the adjustment of the contract price under paragraph (1) are met due to foreign exchange fluctuation. <Newly Inserted by Presidential Decree No. 21202, Dec. 31, 2008>
(8) Notwithstanding paragraph (1), the head of each central government agency or a contracting officer shall adjust the contract price for simple labor services prescribed by Ordinance of the Ministry of Strategy and Finance, only with respect to labor cost for which unit wages have changed after the budget price is made. <Newly Inserted by Presidential Decree No. 28690, Mar. 6, 2018>
 Article 65 (Adjustment of Contract Price due to Design Modification)
(1) Where the volume of construction works increases or decreases as a result of a design modification in the contract for a construction project, the head or any contracting officer of the competent central government agency shall adjust the contract price in accordance with Article 19 of the Act: Provided, That no contract price shall be altered, if a person intending to participate in a tendering procedure submits a bill of quantity prepared by him/herself pursuant to the proviso to Article 14 (7), along with a calculation sheet with a unit price entered by him/herself, and the design is modified due to an omission or error in the bill of quantity. <Amended by Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 22282, Jul. 21, 2010>
(2) Where a contracting officer intends to adjust the contract price for a construction project, which was successfully tendered at less than 86/100 of the budget price, by increasing the contract price pursuant to paragraph (1), and the increased amount (referring to the aggregate of the amount already adjusted by a decrease or increase due to previous design modifications and the amount by which the contract price is to be increased, in cases of the second or subsequent adjustment of the contract price) is at least 10/100 of the contract price of the initial contract (referring to the amount of the entire construction project additionally stated pursuant to Article 69 (2) in cases of a long-term continuing project), he/she shall undergo an examination by the Contracting Council under Article 94 (1), the Budget Execution Council under Article 49 of the Enforcement Decree of the National Finance Act, or the Technology Advisory Committee under Article 19 of the Enforcement Decree of the Construction Technology Promotion Act (hereinafter referred to as the "Technology Advisory Committee"), and then shall obtain approval therefor from the head of the central government agency to which he/she belongs. <Amended by Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 19806, Dec. 29, 2006; Presidential Decree No. 25358, May 22, 2014; Presidential Decree No. 26321, Jun. 22, 2015>
(3) The adjustment of a contract price under paragraph (1) shall be made in accordance with the following guidelines: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 19035, Sep. 8, 2005>
1. The unit price for the increased or decreased volume of construction works shall remain the same as the unit price on the calculation sheet submitted pursuant to Article 14 (6) or (7) (hereinafter referred to as “agreed unit price”): Provided, That if the agreed unit price is greater than the budget unit price under Article 9 (hereinafter referred to as “budget unit price”) and the quantity increases, the unit price applicable to the increased quantity shall be the budget unit price;
2. The unit price for a new item with no agreed unit price shall be computed by multiplying the unit price determined as at the time of design modification by the successful tender ratio;
3. Where the Government requests a design modification (including where design shall be modified due to a cause for which the counter-party to the contract is not liable), the unit price for the increased quantity or for a new item shall be stipulated by agreement between parties to the contract within the range of the unit price computed as at the time of the design modification and the amount computed by multiplying the unit price by the successful tender ratio, notwithstanding subparagraphs 1 and 2: Provided, That if parties to the contract fail to reach an agreement, 50/100 of the aggregate of the unit price computed as at the time of the design modification and the amount computed by multiplying the unit price by the successful tender ratio shall be determined as the applicable unit price.
(4) Where the head or any contracting officer of the competent central administrative agency modifies the design at the request of the counter-party to the contract, as he/she acknowledges that the counter-party to a contract can significantly reduce construction cost or shorten the construction period by using a new technology or construction method, he/she shall adjust the contract price by reducing it by an amount equivalent to 30/100 of the reduced cost. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 18155, Dec. 11, 2003; Presidential Decree No. 21202, Dec. 31, 2008>
(5) Where an objection is raised with regard to the scope and extent of new technologies, construction methods, etc. in cases falling under paragraph (4), the objection shall be referred to the Technology Advisory Committee for examination (referring to the Construction Technology Deliberation Committee under Article 5 of the Construction Technology Promotion Act, if no Technology Advisory Committee has been established). In such cases, the scope and extent of new technologies, construction methods, etc., the method for the settlement of objections, and procedures therefor in detail shall be determined by the head of each central government agency. <Amended by Presidential Decree No. 21202, Dec. 31, 2008; Presidential Decree No. 25358, May 22, 2014>
(6) Overhead expenses, profits, etc. for the increase or decrease in a contract price shall be determined by the ratios of overhead expenses, profits, etc. on the calculation sheet submitted pursuant to Article 14 (6) or (7) but shall not exceed the ratios specified by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(7) Paragraphs (1) through (6) may apply mutatis mutandis to the adjustment of a contract price in cases of a contract for manufacturing or services, etc.
 Article 66 (Adjustment of Contract Price Following Amendment to Terms and Conditions of Contract)
(1) If it is necessary to adjust a contract price due to an amendment to terms and conditions of the contract, such as a change in the construction period or the distance of transportation, with regard to a contract for a construction project or for manufacturing, etc. under Article 19 of the Act, except for the cases under Articles 64 and 65, the head or a contracting officer of the competent central administrative agency shall adjust the contract price according to the change within the extent of not exceeding actual expenses. <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
(2) The head of each central government agency or a contracting officer shall adjust the contract price for simple labor services prescribed by Ordinance of the Ministry of Strategy and Finance, where it is deemed that the initial contract price (including cases where the contract price is adjusted under Article 64 (8)) is not sufficient to pay the minimum wages raised according to the amendment to the Minimum Wage Act, the cases which fulfill the requirements prescribed by the Minister of Strategy and Finance. <Newly Inserted by Presidential Decree No. 28690, Mar. 6, 2018>
(3) Article 65 (6) shall apply mutatis mutandis to the cases under paragraph (1). <Amended by Presidential Decree No. 28690, Mar. 6, 2018>
 Article 67 (Contracting Before Beginning of Fiscal Year)
When the head or a contracting officer of a central administrative agency intends to execute a contract before a fiscal year starts pursuant to Article 20 of the Act, he/she shall ensure that the contract takes effect on or after the fiscal year starts.
[This Article Wholly Amended by Presidential Decree No. 19035, Sep. 8, 2005]
 Article 68 (Prohibition of Division of Contract for Construction Project)
(1) The head or a contracting officer of a central administrative agency shall not divide a construction project for identical structures specified by the Minister of Strategy and Finance or a single construction project with the entire construction works fixed by design documents, etc. to make partial contracts based on construction periods or based on the volume of construction works: Provided, That the foregoing shall not apply to construction works specified in any of the following: <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17688, Jul. 30, 2002; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 25033, Dec. 30, 2013>
1. Construction works specified by any other Act as construction works that may be separated from different types of construction works;
2. Construction works that can be performed efficiently by division in light of the nature or scale of the construction works;
3. Any of the following construction works, for which it is easy to identify persons liable for defects, no impediment to manage the work progress exists, and a separate execution of the works is deemed more efficient:
(a) Construction works, the design document of which is formulated separately;
(b) Construction works, which are by its nature clearly identified according to their types, in terms of the subject matter, period, and place of construction and other relevant matters.
(2) The head of a central government agency shall examine the feasibility of concluding a contract by division or separation in accordance with paragraph (1), beginning in the planning phase of a project, including budget formation and basic designing. <Newly Inserted by Presidential Decree No. 25033, Dec. 30, 2013>
 Article 69 (Long-Term Continuing Contracts and Contracts by Continuing Expenditure)
(1) Where it is intended to execute a long-term contract specified in any of the following subparagraphs pursuant to Article 21 of the Act, a contract for a unit price may be executed with approval from the head of the competent central government agency: <Amended by Presidential Decree No. 25679, Nov. 4, 2014>
1. A service contract for transportation, storage, testing, research, land survey, or management of facilities or a lease contract;
2. A contract for supply of electricity, gas, water, or other utilities;
3. A contract for maintenance and repair of equipment, an information system, and software.
(2) A contract for a long-term continuing construction project shall be made for the first phase of the construction project for the pertinent year within the limit of the budget for the pertinent year, in which the amount of the entire construction project determined according to a successful tender shall be additionally stated. In such cases, parties to the contract shall agree on the additional condition that contracts for the second and subsequent phases shall be made for an amount not exceeding the amount computed by subtracting the amount of the contract executed from the amount of the entire construction project additionally stated in the contract (referring to the adjusted amount of the entire construction project, where the contract price is adjusted pursuant to Articles 64 through 66).
(3) Paragraph (2) shall apply mutatis mutandis to the method for executing a contract for the long-term manufacture, etc. of goods and the project for construction of an information system (including where a contract is executed embracing project for operation, maintenance and repair of the relevant information system together with the project for construction thereof). <Amended by Presidential Decree No. 25679, Nov. 4, 2014>
(4) The contract price for the first phase and the second and subsequent phases under paragraphs (2) and (3) shall be determined with the agreed unit price for the entire construction project or for total production, etc.
(5) Where a contract for a construction project to be executed with the budget for continuing expenditure is made, terms and conditions regarding the entire construction project and annual phases of the project shall be clearly stipulated.
 Article 70 (Contract by Rough Estimate)
(1) When the head or a contracting officer of a central government agency intends to execute a contract by rough estimate pursuant to Article 23 of the Act, he/she shall determine a roughly estimated price in advance. <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
(2) When the head of a central government agency intends to execute a contract by rough estimate pursuant to the provisions of paragraph (1), he/she shall determine guidelines, procedures, etc. necessary for the examination of costs before calling for tenders, taking into consideration the characteristics of the subject matter of the contract, the quantity of contract, the period of performance, etc., and shall make such guidelines, procedures, etc. available for inspection to persons intending to participate in tendering. <Amended by Presidential Decree No. 15186, Dec. 31, 1996>
(3) When a contracting officer of a central government agency executes a contract by rough estimate pursuant to the provisions of paragraph (1), he/she shall notify the Board of Audit and Inspection of the contract and shall settle the accounts for the contract in accordance with the guidelines, etc. under the provisions of Article 9 and paragraph (2) with approval from the head of the competent central government agency therefor after the contract is completely performed. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996>
 Article 71 (Consolidated Contract)
If the Minister of Strategy and Finance deems it necessary for executing a consolidated contract pursuant to Article 24 of the Act, he/she may determine the method for executing the consolidated contract and other necessary matters. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 72 (Joint Contract)
(1) The method for executing a joint contract and other necessary matters under Article 25 of the Act shall be determined by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(2) Where the head or a contracting officer of a central government agency intends to execute a contract through a competition, he/she shall make a joint contract as far as possible, unless a joint contract is deemed inappropriate in light of the purpose or nature of the contract.
(3) When the head or a contracting officer of a central government agency executes a joint contract under paragraph (2) for either of the following projects, at least one person whose head office in the corporate register is located in the Special Metropolitan City, a Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province having jurisdiction over the project site shall be included in the contracting consortium as a member: Provided, That the foregoing shall not apply where the number of persons qualified as necessary for the performance of a construction project in the region is less than ten: <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17546, Mar. 25, 2002; Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 21578, Jun. 29, 2009; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 22660, Feb. 9, 2011; Presidential Decree No. 27475, Sep. 2, 2016>
1. A project, the estimated price of which is less than the publicly announced amount and that is deemed necessary for the balanced development of the construction industry, etc.;
2. A project publicly notified by the Minister of Strategy and Finance as deemed necessary particularly for the efficient promotion of low-carbon and green growth, the sustainable development of the national land, the revitalization of local economies, etc.: Provided, That projects in which foreign constructors (referring to foreigners or foreign corporations registered for construction business under Article 9 of the Framework Act on the Construction Industry) are included in the counter-party to a contract shall be excluded herefrom.
(4) In cases of a joint contract under paragraph (3), the business entities in the region where the project site is situated and business entities from other regions, among members of the contracting consortium, shall not be affiliated companies with one another prescribed in the Monopoly Regulation and Fair Trade Act. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005>
[Paragraph (3) 2 of this Article shall be effective until December 31, 2013 pursuant to Article 2 of the Addenda to Presidential Decree No. 22660 (Feb. 9, 2011): Provided, That with respect to the projects for which public notice of a tender is given by not later than December 31, 2013, the amended provisions of Article 72 (3) 2 shall apply until such projects end.]
 Article 72-2 (Joint Contract for Knowledge-Based Project)
Where participants in a tendering procedure intend to jointly participate in a complex project for which expertise in various fields is required, among knowledge-based projects, the head or a contracting officer of the central government agency shall permit their participation, except in any exceptional situation.
[This Article Newly Inserted by Presidential Decree No. 18155, Dec. 11, 2003]
 Article 73 (Contract Subject to Ex Post Facto Cost Review)
(1) If the head or a contracting officer of a central government agency is unable to determine the amount for some expense items, which constitute the budget price, before tendering, he/she may execute a contract subject to ex post facto cost review.
(2) When the head of a central government agency intends to execute a contract under paragraph (1), he/she shall determine guidelines, procedures, etc. necessary for ex post facto cost review before tendering, taking into consideration the characteristics of the subject matter of the contract, the quantity of contract, the period of performance, etc.. and shall make such guidelines, procedures, etc. available for inspection to persons intending to participate in tendering.
(3) Upon the completion of performance of a contract, payments therefor shall be settled after reviewing the cost thereof in accordance with the guidelines, etc. established pursuant to the provisions of Article 9 and paragraph (2).
[This Article Wholly Amended by Presidential Decree No. 15186, Dec. 31, 1996]
 Article 73-2 (Contract for Construction Management Services)
(1) If the head or a contracting officer of a central government agency deems it necessary, taking into consideration the characteristics and scale of the subject matter of a contract, the period of performance, etc., when he/she executes a contract for a construction project under the Framework Act on the Construction Industry, he/she may execute a contract for construction management services with a person that is capable of performing the construction management under subparagraph 8 of Article 2 of the Framework Act on the Construction Industry. <Amended by Presidential Decree No. 23282, Nov. 1, 2011>
(2) The method for executing a contract under paragraph (1) and other necessary matters shall be determined by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 19483, May 25, 2006]
 Article 74 (Penalty for Delay)
(1) If the counter-party to a contract (excluding state agencies and local governments) delays the performance of contractual obligations, the head or a contracting officer of the competent central government agency shall require the counter-party to the contract to pay the amount computed by multiplying the contract price (referring to an annual contract price in cases of a contract for a long-term continuing construction project, for the long-term continuing manufacture of goods, or for long-term continuing services; hereafter the same shall apply in this Article) by the rate prescribed by Ordinance of the Ministry of Strategy and Finance and the number of delayed days in cash as penalty for delay. In such cases, if it is found that the performance of a contract has been delayed due to a cause which is not attributable to the counter-party to the contract, the number of relevant days shall not be included in the number of delayed days. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20720, Feb. 29, 2008>
(2) If a portion already completed or supplied has been accepted through an inspection in cases of paragraph (1) (including portions managed and used without accepting them; hereafter the same shall apply in this Article), the calculation of the penalty for delay shall be based on the amount computed by subtracting the amount for such portion from the contract price. In such cases, the acceptance of a portion completed or supplied shall be limited to the acceptance of a completed portion of a construction project, goods, or services, which is divisible in the nature thereof. <Amended by Presidential Decree No. 16548, Sep. 9, 1999>
 Article 75 (Cancellation and Termination of Contract)
(1) Where the head or a contracting officer of a central government agency transfers a contract bond to the National Treasury to forfeit it under Article 12 (3) of the Act, he/she shall cancel or terminate the relevant contract, except as otherwise provided in the contract, and shall notify the counter-party to the contract of the reasons therefor.
(2) If a cause arises to collect a penalty for delay under Article 74 (1) and the amount of the penalty reaches the amount equivalent to the contract bond under Article 50 (1) (including an exempted contract bond), the head or a contracting officer of the competent central government agency may cancel, terminate, or maintain the relevant contract in accordance with either of the following subparagraphs: <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
1. If the counter-party to the contract is found evidently unable to perform the contract due to a cause which is attributable to the counter-party: The contract bond shall be forfeited to the National Treasury under Article 12 (3) of the Act and the relevant contract shall be cancelled or terminated;
2. If there is a possibility that the counter-party to the contract performs the contract in any case, other than the cases referred to in subparagraph 1 and it is found necessary to maintain the contract: The counter-party shall be required to pay an additional contract bond equivalent to the portion of the contract for which performance has not been completed and the contract shall be maintained. In such cases, Article 50 (6) through (8) and (10) shall apply mutatis mutandis to the additional payment of a contract bond.
 Article 76 (Restrictions on Qualification for Participation of Dishonest Business Operators in Tendering)
(1) "Persons prescribed by Presidential Decree" in Article 27 (1) 8 of the Act means persons classified as follows:
1. A person who falls under any of the following, who is likely to interfere with the fair supervision of competition:
(a) A person who forges or falsifies documents concerning tender or contract (where a tenderer submits a tender through the electronic procurement system pursuant to Article 39, including an accredited certificate under subparagraph 8 of Article 2 of the Digital Signature Act), uses such documents unlawfully or submits false documents;
(b) A person who intentionally submits a tender that becomes null and void;
(c) A person who has failed to participate in bidding (excluding bidding which requires bidders to submit a bid through the electronic procurement system or the data processing system designated and announced by the head of each central administrative agency pursuant to Article 39 (1)) at least three times during the relevant fiscal year without any justifiable reasons though he/she submitted an application for participation in bidding or a letter of acceptance of participation in bidding;
(d) A person who interferes with other bidders' participation in bidding, or interferes with the conclusion or performance of a contract by a successful bidder;
(e) A person who fails to submit all or some of documents necessary to examine the ability to perform a contract under Article 42 (1) without any justifiable reasons or decides not to undergo examination before a successful bidder is determined after having submitted documents;
(f) A person who fails to submit all or some of documents necessary for examination in the process of determining a successful bidder under Article 42 (1) without any justifiable reasons or decides not to undergo examination before a successful bidder is determined after having submitted documents;
(g) A person who fails to submit working drawings by the deadline without any justifiable reasons after he/she has been selected as a person eligible for working drawings where a successful bidder of a project on a turnkey basis is determined pursuant to Article 87;
2. A person who is likely to interfere with the reasonable performance of a contract, who falls under any of the following:
(a) A person who fails to enter into or perform a contract (including the implementation of matters concerning a subcontract management plan and a plan to fulfill working conditions of outsourced workers submitted for the examination of the ability to perform the contract under Article 42 (5) and matters concerning joint contracts under Articles 72 and 72-2), or violates important conditions of the contract specified in the tender notice and written contract (limited to cases where his/her qualification for participation in bidding may be restricted where he/she fails to fulfill conditions specified in the tender notice and written contract) without any justifiable reasons;
(b) A person who fails to calculate the amount of research and design, or the amount of cost accounting intentionally or by gross negligence in a research and design service contract or cost accounting service contract;
(c) A person who inflicts loss on an institution which has placed an order because he/she presented a poor feasibility study, such as in terms of demand forecasting, intentionally or by gross negligence in connection with a feasibility study service contract under Article 47 of the Construction Technology Promotion Act;
(d) A person who interferes with the performance of duties to exercise supervision or conduct tests;
(e) A person who replaces a construction project management engineer without adhering to reasons and procedures for replacing the construction project management engineer under Article 60 of the Enforcement Decree of the Construction Technology Promotion Act, a written contract, etc. when he/she enters into a construction project management service contract in the construction phase;
3. A person who is deemed inappropriate to participate in bidding because he/she violates other Acts and subordinate statutes, who falls under any of the following:
(a) A person who has inflicted harm on the general public because he/she was negligent in taking safety measures in the performance of a contract, or who has inflicted serious harm, such as death, on workers because he/she was negligent in taking safety and health measures under the Occupational Safety and Health Act at the workplace;
(b) A person who divulges information designated as information prohibited from divulgence in advance and specified in a written contract because the Government deems the divulgence of information about the head or a contracting officer of each central government agency to inflict damage on the Republic of Korea without permission among the information he/she has learned in the process of performing a contract for establishment, maintenance and repair of an information system under subparagraph 13 of Article 2 of the Electronic Government Act;
(c) A person who has access to an information system, etc. without permission, installs an unapproved program through which he/she may collect information without permission, or intentionally produces or leaves vulnerabilities in the information system, etc., which may be misused for such actions in the process of performing the relevant contract, such as the establishment, maintenance, repair, etc. of the information and communication network under subparagraph 10 of Article 2 of the Electronic Government Act, or the information system (hereafter referred to as "information system, etc." in this item) under subparagraph 13 of the aforesaid Article.
(2) The head of each central government agency shall immediately limit qualification for participation in bidding of persons who fall under any of the subparagraphs of Article 27 (1) of the Act (hereinafter referred to as "dishonest business operator"), who are the other party to a contract, bidders or persons who submit a quotation using the electronic procurement system (hereafter referred to as "other party to the contract" in this Article) pursuant to Article 30 (2), for not less than one month nor more than two years: Provided, That where a reason for limitation on qualification for participation in bidding arises because an agent, manager or other employee of the other party to the contract does an act falling under any of the subparagraphs of Article 27 (1) of the Act, in which case the other party to the contract, etc. has not neglected to pay reasonable attention to and exercise reasonable supervision over his/her agent, manager or other employees to prevent them from doing such act, the head of each central government agency shall not limit qualification for participation in bidding of the other party to the contract, etc.
(3) Matters concerning the period of limitation on qualification for participation in bidding under paragraph (2) shall be prescribed by Ordinance of the Ministry of Strategy and Finance in consideration of demerit points for poor workmanship or materials, percentage of defects, types of irregularities, whether any violations are committed intentionally or by gross negligence, the amount a bribe, the degree of damage inflicted on the Republic of Korea for each act falling under the subparagraphs of Article 27 (1) of the Act.
(4) Where a consortium of a joint contract under Article 25 of the Act falls under any of the subparagraphs of Article 27 (1) of the Act, paragraph (2) shall only apply to a person who provides grounds for limitation on qualification for participation in bidding.
(5) Where a person who falls under any of the following falls under any of the subparagraphs of Article 27 (1) of the Act, paragraph (2) shall also apply to persons falling under the classification:
1. Corporation or organization: The representative of a corporation or organization (where there are several representatives, limited to the representative who preside over affairs concerning the relevant bidding and contract);
2. Small and medium enterprise cooperative under the Small and Medium Enterprise Cooperatives Act: A member of the cooperative who has provided grounds for limitation on qualification for participation in bidding.
(6) The head or a contracting officer of each central government agency shall restrict a person in whose case his/her qualification for participation in bidding is limited pursuant to paragraphs (2), (4) and (5) from participating in bidding solicited by the relevant government agency during the limitation period.
(7) Where a person who is a successful bidder in the competitive bidding is placed under restrictions on qualification for participation in bidding pursuant to paragraph (2), (4) or (5) before he/she enters into a contract, the head or a contracting officer of each central government agency shall not enter into the contract with such successful bidder: Provided, That where a successful bidder of a long-term continuous contract under Article 21 of the Act is placed under restrictions on qualification for participation in bidding after he/she has entered into the first contract, in which case the head or a contracting officer of each central government agency enters into a yearly contract for the relevant long-term continuous contract, he/she may enters into a contract with the other party to the relevant contract.
(8) The head or a contracting officer of each central government agency shall also apply paragraphs (6) and (7) to a person who uses a person placed under restrictions on qualification for participation in bidding pursuant to paragraph (5) 1 as representative: Provided, That where there are several representatives and the relevant representative is not involved in bidding, the foregoing shall not apply.
(9) Where the head of each central government agency imposes restrictions on qualification for participation in bidding, he/she shall specify and publish the following matters on the electronic procurement system before the date of commencement of the period of restrictions on qualification for participation in bidding under subparagraph 2 so that the heads or contracting officers of other central government agencies may know such restrictions, as prescribed by Ordinance of the Ministry of Strategy and Finance:
1. Company (trade) name, domicile, name (where a business is a corporation, the name of the representative, and the corporate registration number), resident registration number, business registration number, license or registration number under the relevant Acts and subordinate statutes;
2. Period of restrictions on qualification for participation in bidding;
3. Specific reasons for restricting qualification for participation in bidding;
4. Where the execution of restrictions on qualification for participation in bidding is suspended, the fact that the suspension of the execution thereof is suspended and the suspension of the execution thereof is cancelled.
(10) Where the head of each central government agency imposes restrictions on qualification for participation in bidding, he/she shall disclose the following matters on the electronic procurement system before the date of commencement of the period of restrictions on qualification for participation in bidding pursuant to Article 27 (5) of the Act, as prescribed by Ordinance of the Ministry of Strategy and Finance:
1. Company (trade) name, name (where a business is a corporation, the name of the representative, and the corporate registration number), and business registration number;
2. Matters falling under paragraph (9) 2 through 4.
(11) The head or a contracting officer of each central government agency shall also restrict persons in whose case he/she is notified of the fact that they are placed under restrictions on qualification for participation in bidding pursuant to other Acts and subordinate statutes, such as the Act on Contracts to Which a Local Government Is a Party or the Act on the Management of Public Institutions, or who are published on the electronic procurement system from participating in bidding.
(12) The head or a contracting officer of each central government agency shall confirm the resident registration number, corporate registration number, license or registration number, etc. under the relevant Acts and subordinate statutes of tender participants in order to prevent those placed under restrictions on qualification for participation in bidding pursuant to paragraphs (2), (4) and (5), and those published on the electronic procurement system pursuant to paragraph (9) from participating in bidding within the period of restriction through the methods of changing the company name or the representative thereof.
(13) In addition to the matters provided for in paragraphs (9) through (12), matters concerning the notification of restrictions on qualification for participation in bidding shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Presidential Decree No. 27475, Sep. 2, 2016]
 Article 76-2 (Cases Subject to Imposition of Penalty Surcharges and Criteria therefor)
(1) “Cases prescribed by Presidential Decree, in which cases responsibility of a dishonest business operator is insignificant” in Article 27-2 (1) 1 of the Act means any of the following cases: Provided, That the foregoing shall not apply to persons who fall under Article 27 (1) 2 and 4 through 7 of the Act, Article 76 (1) 1 (a), (b) and (c), 2 (b) through (d), 3 (b) or (c) of this Decree: <Amended by Presidential Decree No. 25679, Nov. 4, 2014; Presidential Decree No. 27475, Sep. 2, 2016>
1. Where the cause is a natural disaster or any other similar event beyond control;
2. Where the cause is the deterioration of domestic or overseas economic situation or a radical change in economic conditions;
3. The cause is a change made by the authority awarding the contract in regard to an essential condition of the contract or an error in data distributed by the authority awarding the contract;
4. Where another joint contractor, a subcontractor, or a business entity involved is jointly liable for a violation;
5. Where the fairness of a tender and the propriety of performing a contract are not significantly impaired, where there is any ground in deeming that the improper businessman is not likely to recommit a violation as his/her responsibility is insignificant.
(2) “Cases specified by Presidential Decree as cases where it is evident that a competitive tendering procedure is not effectively completed due to restrictions on qualification for participation in tendering procedures” in Article 27-2 (1) 2 of the Act means where the number of tenderers is anticipated to be less than two persons. <Amended by Presidential Decree No. 25679, Nov. 4, 2014>
(3) The rate of a penalty surcharge imposed under Article 27-2 (1) of the Act and other necessary matters shall be prescribed by Ordinance of the Ministry of Strategy and Finance, taking into consideration the penalty points for poor performance, the ratio of defects, types of misconduct, whether committed intentionally or by negligence, etc. for each type of conduct falling under the subparagraphs of Article 27 (1). <Amended by Presidential Decree No. 27475, Sep. 2, 2016>
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-3 (Imposition and Payment of Penalty Surcharge)
(1) When the head of a central government agency intends to impose a penalty surcharge on a person under Article 27-2 of the Act, he/she shall give a person a written notice, in which the category of violation and the amount of the penalty surcharge are clearly stated.
(2) Upon receipt of a notice given under paragraph (1), a person shall pay the penalty surcharge to the receiving agency designated by the imposing authority within 60 days from the date on which the notice is delivered: Provided, That if it is impossible to pay a penalty surcharge within the specified period due to a natural disaster or any other event beyond control, the penalty surcharge shall be paid within 30 days from the date on which the event terminates.
(3) Upon receipt of a penalty surcharge under paragraph (2), a receiving agency shall issue a receipt to a person that pays the penalty surcharge.
(4) Upon receipt of a penalty surcharge under paragraph (2), the receiving agency authorized to receive penalty surcharges shall notify the imposing authority of the receipt without delay.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-4 (Extension of Deadline for Payment of Penalty Surcharge and Payment in Installments)
(1) If a penalty surcharge that an improper businessman shall pay in accordance with Article 27-2 of the Act exceeds ten percent of the contract price or a penalty surcharge imposed upon a small or medium business entity, under Article 2 of the Framework Act on Small and Medium Enterprises, exceeds one billion won and it is found that the person that shall pay the penalty surcharge is hardly able to pay the full amount of the penalty surcharge in a lump sum in any of the following cases, the head of the competent central government agency may extend the deadline for payment or may permit the person to pay it in installments:
1. Where the person has sustained a severe loss in his/her property due to a disaster, theft, or other event;
2. Where the person’s business is in a critical crisis due to the deterioration of business conditions;
3. Where the person is anticipated to face a severe hardship in financial situation if the person is forced to pay the penalty surcharge in a lump sum;
4. Where the person is in any other situation similar to those specified in subparagraphs 1 through 3.
(2) A person intending to apply for the extension of the deadline for the payment of a penalty surcharge or for the payment of a penalty surcharge in installments pursuant to paragraph (1) shall file an application with the head of the competent central government agency within 30 days from the date on which the person is notified of the payment of the penalty surcharge, along with documents proving the grounds for the extension of the deadline for the payment of the penalty surcharge or for the payment of the penalty surcharge in installments.
(3) The deadline for payment under paragraph (1) shall not be extended by more than one year from the date immediately after the deadline for payment.
(4) Where a person is permitted to pay a penalty surcharge in installments pursuant to paragraph (1), the interval between deadlines for payment in installments shall not exceed three months, and the number of installments shall not exceed three installments.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-5 (Composition of Committee for Imposition of Penalty Surcharges)
(1) The Committee for Imposition of Penalty Surcharges that shall be established pursuant to Article 27-3 of the Act (hereafter in this Chapter, referred to as the “Committee”) shall be comprised of not more than 15 members, including one chairperson.
(2) The Vice Minister II of the Ministry of Strategy and Finance shall serve as the chairperson of the Committee, while other committee members shall be comprised of the following persons, taking gender equality into account: <Amended by Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
1. One person each designated by the head of each competent government agency, from among public officials who belong to the Senior Civil Service Corps of the Ministry of Strategy and Finance, the Ministry of National Defense, the Ministry of the Interior and Safety, the Fair Trade Commission, and the Public Procurement Service: Provided, That the number of persons from the Public Procurement Service shall be two;
2. Not more than eight civilian members commissioned by the Minister of Strategy and Finance from among the following persons who have abundant knowledge and experience in a field related to contracting:
(a) A person that has served as an adjunct or higher-ranking professor in law, economics, or business administration in a university defined under the Higher Education Act;
(b) A person that holds a license as an attorney at law and has engaged or engages in a business related to the license for at least five years;
(c) A person that has abundant knowledge and experience in business affairs related to government procurement contracts and whose qualification is recognized as equivalent to the criteria prescribed in items (a) and (b) above.
(3) The term of office of a civilian member under paragraph (1) 2 shall be two years, but may be renewed consecutively.
(4) The term of office of a committee member newly commissioned due to the resignation of a committee member who is not a public official shall coincide with the remaining term of office of his/her predecessor.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-6 (Chairperson’s Duties)
(1) The chairperson shall represent the Committee and shall administer all business affairs of the Committee.
(2) If the chairperson is unable to perform his/her duties due to a cause beyond control, the committee member designated by the Minister of Strategy and Finance shall act on behalf of the chairperson.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-7 (Exclusion of, Challenge against, and Evasion of Committee Members)
(1) A committee member shall be excluded from deliberation on any of the following cases:
1. Where a committee member or a person who is or was the spouse of the committee member is the improper businessman at issue (including executive officers of the improper businessman, if the improper businessman is a corporation or organization; hereafter the same shall apply in this subparagraph and subparagraph 2) or a person that holds a right or owes an obligation jointly with the improper businessman;
2. Where a committee member is or was a relative of the improper businessman at issue;
3. Where a committee member or the institution or corporation to which a committee member belongs has given testimony, made a statement, given advice, conducted a study, provided services, or presented an expert opinion in connection with the case at issue;
4. Where the case at issue is related to a contract awarded by a committee member of the central government office to which a committee member belongs (referring to the bureau to which a committee member belongs in cases of the Public Procurement Service);
5. Where a committee member, as a public official of a central government agency, has conducted an investigation or examination in connection with the case at issue.
(2) If an improper businessman involved in a case has a ground to believe that it is hard to expect impartial deliberation by a committee member, he/she may file a challenge against the committee member. In such cases, the committee chairperson shall determine whether to accept the challenge without referring the challenge to the Committee for resolution.
(3) If a committee member finds that he/she might be excluded or challenged on the ground for exclusion under any subparagraph of paragraph (1) or the ground for challenge under paragraph (2), he/she shall voluntarily evade deliberation on the case at issue.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-8 (Withdrawal of Designation, Dismissal and Discharge of Members)
(1) Where a member of the Committee falls under any of the following cases, a person who has designated such member pursuant to the main sentence of Article 76-5 (2) 1 may withdraw the designation thereof:
1. Where the member becomes unable to perform his/her duties due to a mental or physical disability;
2. Where the member has committed irregularities in relation to his/her duties;
3. Where the member is deemed unfit to be a member due to dereliction of duty, injury to dignity, or for other reasons;
4. Where the member makes it clear that it is difficult for him/her to perform his/her duties;
5. Where the member fails to avoid deliberation though he/she falls under Article 76-7 (1) or (2).
(2) Where a nongovernmental member under Article 76-5 (2) 2 falls under any of the subparagraphs of paragraph (1), the Minister of Strategy and Finance may dismiss the relevant member.
[This Article Newly Inserted by Presidential Decree No. 27475, Sep. 2, 2016]
 Article 76-9 (Request for Deliberation)
(1) Where the head of a central government agency intends to request the Committee to deliberate on whether to impose a penalty surcharge or whether the amount of a penalty surcharge is appropriate pursuant to Article 27-2 (2) of the Act, he/she shall submit a written statement with the following descriptions therein to the Committee:
1. The name and address of the improper businessman at issue (referring to the name of the corporation, if the improper businessman is a corporation, its principal place of business, and the name of its representative);
2. Reasons why it is necessary to impose the penalty surcharge;
3. The amount of the penalty surcharge imposed and the ground for determining the amount.
(2) The written statement under paragraph (1) shall be accompanied by the following documents:
1. A document certifying the cause to impose restrictions on participation in tendering or penalty surcharge on the improper businessman and relevant facts;
2. Other evidential documents necessary for deliberation.
(3) If it is impracticable to determine whether to impose a penalty surcharge and whether the amount of a penalty surcharge is appropriate only with the documents specified in paragraphs (1) and (2), the Committee may request the head of the competent central government agency to supplement documents within a reasonable period set by the Committee. In such cases, the period required for the supplementation of documents shall not be included in the period specified for deliberation under Article 76-9 (1).
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-10 (Deliberation)
(1) The Committee shall notify the results of deliberation to the head of a central government office within 60 days from the date on which it receives a request for deliberation from the head of the central government agency: Provided, That the period may be extended by not more than 30 days in an exceptional situation.
(2) If necessary, the Committee may require an improper businessman and the head of the competent central government agency to submit documents relevant to the matter on which deliberation is requested and may request specialized institutions to present expert opinions and to conduct examinations, tests, etc.
(3) The Committee shall give opportunities to express opinions to the improper businessman at issue, the head of the competent central government agency, and their representatives before closing deliberation and making a decision, and if necessary, may summon the improper businessman, the head of the competent central government agency, their representatives, and witnesses or relevant experts to the Committee to hear their opinions.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-11 (Committee’s Meetings)
(1) The chairperson shall convene the Committee’s meetings and shall preside over the meetings.
(2) A meeting of the Committee shall be duly formed with the attendance of a majority of current members, and a resolution shall be adopted by concurring votes of a majority of members present at the meeting.
(3) The Committee shall appoint one secretary that shall carry out administrative affairs of the Committee.
(4) Except as otherwise provided in paragraphs (1) through (3), matters necessary for the operation of the Committee shall be determined by the chairperson of the Committee.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-12 (Subcommittees)
(1) In order to efficiently carry out business affairs of the Committee, it shall establish a subcommittee for construction projects and a subcommittee for goods and services (hereafter referred to as “subcommittees” in this Chapter).
(2) The subcommittee for construction projects shall take charge of deliberation on the imposition of penalty surcharges in connection with projects, such as projects for construction and telecommunications.
(3) The subcommittee for goods and services shall take charge of deliberation on the imposition of penalty surcharges in connection with the manufacture and purchase of goods and services.
(4) Each subcommittee shall be comprised of not more than ten members, including one chairperson.
(5) The chairperson and members of each subcommittee shall be appointed by the chairperson of the Committee, from among members of the Committee, but persons that are not members of the Committee may be appointed or commissioned as members of a subcommittee, if expertise in a matter on which deliberation is requested is required.
(6) The competent subcommittee shall first examine a case on which the Committee is requested to deliberate, prepare a draft decision, and present the draft decision to the Committee.
(7) Articles 76-10, 76-11 and 76-13 shall apply mutatis mutandis to the deliberation by a subcommittee, a subcommittee’s meetings, and allowances for members that attend a subcommittee. In such cases, the term “Committee” shall be construed as “subcommittee”, and the term “chairperson of the Committee” as “chairperson of a subcommittee.” <Amended by Presidential Decree No. 27475, Sep. 2, 2016>
(8) Except as otherwise provided in paragraphs (1) through (7), matters necessary for the operation of subcommittees shall be determined by the chairperson of the Committee.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 76-13 (Allowances)
Allowances may be paid to committee members and related experts that attend a meeting of the Committee within budgetary limits: Provided, That the foregoing shall not apply where a committee member that is a public official attends a meeting of the Committee in direct connection with an affair within the scope of his/her duties.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 77 Deleted. <by Presidential Decree No. 15614, Feb. 2, 1998>
CHAPTER VI CONTRACTS FOR LARGE CONSTRUCTION PROJECTS
 Article 78 (Scope of Application, etc.)
Contracts made through a tendering procedure for alternatives or for a turnkey project and contracts for a specific construction project, among contracts for large construction projects, shall be governed by the provisions of this Chapter, but matters not expressly provided for in this Chapter shall be governed by the provisions of other Chapters of this Decree. <Amended by Presidential Decree No. 16548, Sep. 9, 1999>
 Article 79 (Definitions)
(1) The terms used in this Chapter shall be defined as follows: <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007>
1. The term “large construction project” means a new construction project for the combination of different types of work, the total project cost of which is estimated to be at least 30 billion won;
2. The term “specific construction project” means a construction project that the head of a central government agency deems it more advantageous to implement through a tendering procedure for alternatives or for a turnkey project, among new construction projects for the combination of different types of work, the total project cost of which is estimated to be less than 30 billion won;
3. The term “alternative” means a design, in which a new construction method or new technology with equivalent or better functions or effects, which can substitute the design prepared by the Government without changing the basic policy, for substitutable types of work, among types of work in the working plans prepared by the Government, or the reduction of the construction period is reflected and with which the price in the relevant working plans for the relevant project can be reduced to a level lower than the working plans prepared by the Government, while the construction period does not exceed the period in the working plans prepared by the Government (in cases of the reduction of the construction period, alternatives shall be limited to those with which the construction period is reduced to a period shorter than the period in the working plans prepared by the Government);
4. The term “tendering procedure for alternatives” means a tendering procedure for a construction project for which a tender for an alternative under subparagraph 3 is permitted, at each tenderer’s will, separately in addition to a tender for the original design;
5. The term “tendering procedure for a turnkey project” means a tendering procedure under which a tenderer shall prepare design documents for the relevant project and other drawings and documents necessary for execution (hereinafter referred to as “drawings and documents”) in accordance with the master plan and guidelines presented by the Government for the construction project subject to the tendering procedure for a turnkey project and shall submit such drawings and documents along with tender documents when making a tender;
6. The term “tender for basic plans” means a tender made with basic plans and drawings and documents prepared in accordance with the basic plans, along with tender documents, according to the master plan and guidelines for a tendering procedure for a turnkey project, prior to working plans;
7. The term “tender guide” means documents containing a master plan, guidelines, etc. regarding the scope and scale of a construction project, standards for designing and construction, the management of quality and work progress, and other matters relating to tendering and performance of a contract, of which persons who intend to participate in tendering pursuant to subparagraphs 4 through 6 shall be well informed before participating in a tendering procedure for the relevant construction project;
8. The term “working plans” mean plans necessary for construction (including drawings and documents annexed to the plans), prepared in detail in accordance with a master plan, guidelines, and basic plans;
9. The term “large construction project with continuing expenditure” means a large project, the project cost of which is appropriated in the budget for continuing expenditure;
10. The term “general large construction project” means a large construction project, the project cost of which is not appropriated in the budget for continuing expenditure.
(2) If an objection is raised with regard to the scope and limits of a substitutable design in cases of paragraph (1) 3, the head of the competent central government agency shall determine the scope and limits through deliberation by the Central Construction Technology Deliberation Committee under Article 5 of the Construction Technology Promotion Act (including the Special Committee for Deliberation on Construction Technology; hereinafter referred to as the “Central Construction Technology Deliberation Committee”): Provided, That if the head of a central government agency (including the head of an agency affiliated to a central government agency; hereafter the same shall apply in this Chapter) has established and operates a Technology Advisory Committee, he/she may determine the scope and limits through deliberation by the Technology Advisory Committee. <Amended by Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 25358, May 22, 2014>
 Article 80 (Deliberation, etc. on Tendering Methods for Large Construction Projects)
(1) In cases of large construction projects and specific construction projects (hereafter referred to as "large construction project, etc." in this Article), the head of each central government agency shall go through deliberation on the following by the Central Construction Technology Deliberation Committee: order to call for tenders for a large construction project or a specific construction project (hereafter referred to as “large or specific construction project” in this Article), the head of a central government agency shall undergo deliberation by the Central Construction Technology Deliberation Committee on the tendering method: <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 27475, Sep. 2, 2016>
1. Matters concerning the method of bidding;
2. Matters concerning the method of determining a person eligible for detailed design under Article 85-2 (1);
3. Matters concerning the method of determining a successful bidder under Article 85-2 (2).
(2) When the head of a central government agency intends to go through deliberation by the Central Construction Technology Deliberation Committee pursuant to paragraph (1), he/she shall submit the master plan for the execution of large construction projects, etc. to be executed from the pertinent year onwards in following order, but matters regarding the method for formulating a master plan for the execution of large construction projects, etc. and the timing for submission of such master plan shall be prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 27475, Sep. 2, 2016>
1. A master plan for construction projects to be awarded through a tendering procedure for a turnkey project shall be formulated and submitted separately from a master plan for other construction projects before preparing basic plans;
2. With respect to construction projects on which a decision not to award through a tendering procedure for a turnkey project has been made, working plans shall be prepared and submitted for construction projects to be awarded through a tendering procedure for alternatives.
(3) When the Minister of Land, Infrastructure and Transport completely goes through deliberation by the Central Construction Technology Deliberation Committee on a master plan for the execution of large construction projects, etc. submitted pursuant to paragraph (2), he/she shall make a public announcement of large construction projects, etc. to be executed through the method of alternative bidding or bidding for a project on turnkey basis, and the method of determining a person eligible for the detailed design thereof or a successful bidder according to the results of deliberation. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 27475, Sep. 2, 2016>
(4) Deleted. <by Presidential Decree No. 19483, May 25, 2006>
(5) The head of a central government agency shall call for tenders for large construction projects, etc. in accordance with the method of bidding, and the method of determining a person eligible for the detailed design thereof or a successful bidder publicly announced pursuant to paragraph (3) unless there are exceptional circumstances. <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 27475, Sep. 2, 2016>
[This Article Wholly Amended by Presidential Decree No. 15614, Feb. 2, 1998]
 Articles 81 through 83 Deleted. <by Presidential Decree No. 15186, Dec. 31, 1996>
 Article 84 (Qualification for Participation in Tendering for Turnkey Projects, etc.)
(1) The head or a contracting officer of the competent central government agency shall only permit persons that meet all the following prerequisites to participate in a tendering procedure for a turnkey project or a tendering procedure for alternatives: Provided, That if persons that meet only either of the prerequisites under subparagraphs 1 and 2 join with one another to meet all the following prerequisites and intend to participate in a tendering procedure for a turnkey project or a tendering procedure for alternatives, the head or a contracting officer of the competent central government agency shall permit them to participate in the tendering procedure: <Amended by Presidential Decree No. 25358, May 22, 2014>
1. A person shall be the one registered as a construction business entity necessary for the execution of the relevant construction project pursuant to Article 9 of the Framework Act on the Construction Industry;
2. A person shall be the one reported as a business entity providing construction engineering services under Article 26 of the Construction Technology Promotion Act or a certified architect under Article 23 of the Certified Architects Act.
(2) In cases of a tendering procedure for alternatives, the head or a contracting officer of a central government agency shall permit a person that meets only the prerequisite prescribed in paragraph (1) 1 to participate in the tendering procedure, if the person makes a tender only for the original design without submitting an alternative.
[This Article Wholly Amended by Presidential Decree No. 19483, May 25, 2006]
 Article 84-2 Deleted. <by Presidential Decree No. 22282, Jul. 21, 2010>
 Article 85 (Tendering Procedures for Turnkey Projects, etc.)
(1) In cases of a tendering procedure for a turnkey project, tenders for basic plans shall be called for first, and then only persons selected as qualified for working plans under Article 87 (1) shall be permitted to submit working plans.
(2) Where a tenderer with an alternative intends to submit the alternative, along with a tender for the original design, he/she shall be required to submit the following drawing and documents with tender documents: Provided, That no person shall be permitted to submit two or more alternatives simultaneously: <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 25358, May 22, 2014>
1. An explanatory note in detail regarding the alternative design;
3. A calculation sheet that clearly states the unit price and quantity in a tender for the original design and in another tender for the alternative;
4. Documents that describe advantages of adopting the alternative and other matters for reference;
5. Deleted. <by Presidential Decree No. 19483, May 25, 2006>
(3) A tenderer for a turnkey project shall submit a tender for basic plans or a tender for working plans, along with the drawings and documents specified in either of the following subparagraphs: <Amended by Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 25358, May 22, 2014>
1. For a tender for basic plans:
(a) An explanatory note regarding basic plans;
(c) Other matters required in a public announcement;
2. For a tender for working plans:
(a) An explanatory note in detail regarding working plans;
(c) A calculation sheet clearly stating the unit price and quantity;
(d) Documents describing other matters for reference.
(4) Deleted. <by Presidential Decree No. 16548, Sep. 9, 1999>
(5) In any of the following cases, the head or a contracting officer of each central government agency shall request the Central Construction Technology Deliberation Committee to deliberate the appropriateness of the relevant design and to evaluate design points. In such cases, the Central Construction Technology Deliberation Committee shall examine technical feasibility and notify the head or a contracting officer of the relevant central government agency of the design points, along with a document clearly stating whether the design is appropriate (excluding cases where a tender for the original design is concerned): <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 27475, Sep. 2, 2016>
1. A tendering procedure for alternatives, where a tender for the original design and an alternative selected as qualified for a successful tender under Article 86 (1) is submitted;
2. A tendering procedure for a turnkey project, where a tender for basic plans or a tender for working plans under paragraph (3) is submitted;
3. Where only one bidder participates in bidding as a result of invitation to tender made again under Article 20 for a project on turnkey basis, in which case a bid with a basic design or detailed design of the bidder is submitted.
(6) The head or a contracting officer of a central government agency may substitute the deliberation on a design under paragraph (5) with deliberation by the Technology Advisory Committee: Provided, That the foregoing shall not apply to cases where no Technology Advisory Committee has been established. <Newly Inserted by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 25358, May 22, 2014>
(7) If the Central Construction Technology Deliberation Committee or the Technology Advisory Committee finds, as a result of the deliberation of a design under paragraphs (5) or (6), that the details of drawings and documents attached to a tender for an alternative, a tender for basic plans, or a tender for working plans are insufficient or ambiguous, it may require the tenderer to supplement such drawings and documents. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 25358, May 22, 2014>
 Article 85-2 (Selection of Persons Qualified for Working Plans in Tendering for Turnkey Projects or Methods for Determining Successful Tenderer)
(1) In the case of bidding for a project on turnkey basis, the head or a contracting officer of each central government agency shall determine a person eligible for detailed design through a method deemed by the Central Construction Technology Deliberative Committee most suitable for the relevant construction project among the following methods from among persons selected pursuant to Article 87 (1) in consideration of the purpose, characteristics, etc. of the relevant construction project: <Amended by Presidential Decree No. 22660, Feb. 9, 2011; Presidential Decree No. 27475, Sep. 2, 2016>
1. The method of determining a person whose design points (where a person under Article 84 (1) 2 makes an invalid bid pursuant to Article 39 (4), referring to points deducted as prescribed by the Minister of Strategy and Finance; hereafter the same shall apply in this Article) exceed the criteria standards prescribed by the head or a contracting officer of the competent central government agency within the extent prescribed by the Minister of Strategy and Finance and whose tender price is the lowest as a person qualified for working plans;
2. The method of determining a person whose tender price adjusted by dividing the tender price by design points is the lowest or the person whose design points adjusted by dividing the design points by his/her tender price are the greatest as a person qualified for working plans;
3. The method of determining a person whose points computed by adding a weight to design points and price points and aggregating the results respectively evaluated are the greatest as a person qualified for working plans;
4. The method of determining a person whose design points are the greatest as a person qualified for working plans, where the price of contract has been already fixed and a tenderer is required to submit only basic plans.
(2) In the case of alternative bidding, the head or a contracting officer of each central government agency shall determine a successful bidder through a method deemed by the Central Construction Technology Deliberative Committee most suitable for the relevant construction project among the following methods from among persons who have submitted bids based on original bid documents and persons who have submitted bids based on alternative adopted pursuant to Article 86 (2) through (4) in consideration of the purpose, characteristics, etc. of the relevant construction project: <Amended by Presidential Decree No. 27475, Sep. 2, 2016>
1. The method of determining a person that tenders the lowest price as a successful tenderer;
2. The method of determining a person whose tender price adjusted by dividing the tender price by design points is the lowest or a person whose design points adjusted by dividing the design points by his/her tender price are the greatest as a person qualified for working plans;
3. The method of determining a person whose points computed by adding a weight to design points and price points and aggregating the results respectively evaluated are the greatest as a person qualified for working plans.
(3) The head or a contracting officer of a central government agency shall clearly state the method for determining a person qualified for working plans or a successful tenderer under paragraphs (1) or (2) in the public notice of a tender.
(4) Where a person qualified for working plans is determined under paragraph (1) 4 in a tendering procedure for a turnkey project, the person shall not be required to submit a tender when tenders for basic plans are called for, notwithstanding Article 79 (1) 5 and 6.
(5) The methods and weights for computing design points and price points necessary for a method for determining a person qualified for working plans or a successful tenderer under any subparagraph of paragraphs (1) and (2), the formulas for adjusting designs and prices, and other necessary matters shall be determined by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 86 (Adoption of Alternatives in Tendering Procedure for Alternatives and Determination of Successful Tenderer)
(1) If a tender price for an alternative in a tender submitted pursuant to Article 85 (2) (including a tender price for an alternative after adjusted under paragraph (3) or (4)) meets all the following requirements, the head or a contracting officer of the competent central government agency shall determine the tender as qualified for a successful tender:
1. The tender price for an alternative is lower than the tender’s price for the original design;
2. The tender price for an alternative is not more than the budget price for the entire construction project, and the tender price for the alternative type of work is not more than the budget price for the alternative type of work.
(2) Upon receipt of the notice of whether alternative designs are appropriate and design points of alternative designs under Article 85 (5) with regard to tender documents for alternative designs selected as qualified for a successful tender under paragraph (1), the head or a contracting officer of the competent central government agency shall select not more than six alternatives with the highest design points (or all alternatives notified as qualified, if the number of alternatives notified as qualified is less than six), out of tender documents for the alternatives notified as qualified, and shall adopt an alternative with design points higher than the design points for the original design: Provided, That if the design points of an alternative for some types of work, among many alternative types of work, are lower than the design points of the original design, the alternative type of work for the relevant type of work shall not be adopted. <Amended by Presidential Decree No. 19782, Dec. 29, 2006>
(3) If any type of work is not adopted as an alternative under the proviso to paragraph (2), the head or a contracting officer of the competent central government agency shall wholly adjust the tender price of the alternative by substituting the tender price for the relevant type of work in the tender submitted by the tenderer of the alternative by the tender price for the relevant type of work in the calculation sheet submitted with the tender for the original design.
(4) Where it is required to inevitably modify any part of a design for a type of work adopted due to a type of work not adopted as an alternative under the proviso to paragraph (2) after undergoing the adjustment under paragraph (3), the head or a contracting officer of the competent central government agency may modify the design accordingly: Provided, That the tender price for the modified type of work shall not be increased.
(5) The head or a contracting officer of a central government agency shall determine a successful tenderer by applying a method chosen for determining the successful tenderer under Article 85-2 (2), from among tenderers for the original design and the persons that have submitted an alternative adopted under paragraphs (2) through (4). <Amended by Presidential Decree No. 20319, Oct. 10, 2007>
(6) If no person submits an alternative or no tenderer is determined as a successful tenderer under paragraph (5), the head or a contracting officer of the competent central government agency shall determine a person that has submitted a tender with the lowest price for the original design, which shall be not more than the budget price, as the successful tenderer by either of the following methods: <Amended by Presidential Decree No. 26829, Dec. 31, 2015>
1. A construction project, the estimated price of which is not less than 30 billion won: the tender prices of each tenderer, capabilities of performing a construction project and social responsibility, etc. shall be comprehensively examined in accordance with Article 42 (4) to determine the successful tenderer;
2. A construction project other than those specified in subparagraph 1: The capabilities of performing the contract shall be examined in accordance with Article 42 (1) to determine the successful tenderer.
(7) The determination of a successful tenderer under paragraphs (1) through (6) shall be completed within 80 days from the tendering date, except in extenuating circumstances.
(8) Where the head or a contracting officer of a central government agency intends to make an adjustment or modification under paragraph (3) or (4), he/she shall refer the case to the Central Construction Technology Deliberation Committee or the Technology Advisory Committee for deliberation. <Amended by Presidential Decree No. 25358, May 22, 2014>
[This Article Wholly Amended by Presidential Decree No. 19483, May 25, 2006]
 Article 87 (Selection of Successful Tender in Tendering for Turnkey Project)
(1) Upon receipt of the notice under Article 85 (5) in a tendering procedure for basic plans, the head or a contracting officer of the competent central government agency shall select not more than six tenderers with the highest design points (or all tenderers notified as qualified, if the number of tenderers notified as qualified is less than six), from among tenderers, and shall determine the successful tenderer by applying the method for determining a person chosen as qualified for working plans under Article 85-2 (1): Provided, That the number of persons qualified for basic plans under Article 85 (5) is not more than one person, the second public notice of the tender shall be given. <Amended by Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 19782, Dec. 29, 2006; Presidential Decree No. 20319, Oct. 10, 2007>
(2) Upon receipt of the notice of appropriateness of relevant working plans from the Central Construction Technology Deliberation Committee or the Technology Advisory Committee under Article 85 (5) or (6), the head or a contracting officer of a central government agency shall determine a person that submitted the working plans as a successful tenderer. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 25358, May 22, 2014>
(3) If the tender price of a tenderer determined as qualified for working plans under paragraph (1) for a large project by continuing expenditure exceeds the budget for continuing expenditure or if the tender price of such a tenderer for a general large project exceeds the budget for the entire construction project, the head or a contracting officer of the competent central government agency shall negotiate with the tenderer to adjust the price to budgetary limits and shall give the second public notice of the tender, if the parties fail to reach an agreement thereon. <Amended by Presidential Decree No. 16548, Sep. 9, 1999>
(4) The determination of a successful tenderer under paragraphs (1) and (2) shall be completed within 60 days from the date on which working plans are submitted, except in extenuating circumstances.
(5) If the head or a contracting officer of a central government agency deems it necessary due to the urgency of a construction project or any other extraordinary situation when he/she determines a successful tenderer under paragraph (2), he/she may require a person qualified for working plans under paragraph (1) to prepare working plans for each type of work according to the order of priority for the relevant construction project and may determine a person qualified for working plans as a successful tenderer and authorize the person to execute the construction project according to the order of priority, upon receipt of the notice of appropriateness of the relevant working plans from the Central Construction Technology Deliberation Committee or the Technology Advisory Committee. <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 25358, May 22, 2014>
(6) The head or a contracting officer of a central government agency shall require a person determined as a successful tenderer under the provisions of paragraph (5) to submit a calculation sheets for the entire construction project and for the construction project on which a notice of appropriateness of the relevant working plans has been given, before authorizing the person to execute the construction project, and shall execute a contract according to the calculation sheets. <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999>
(7) Upon receipt of the notice of appropriateness of the final working plans for the entire construction project, the head or a contracting officer of a central government agency shall require a person that has executed a contract pursuant to paragraph (6) to prepare calculation sheets again and shall replace the calculation sheets previously prepared with the new calculation sheets. In such cases, the contract price previously agreed shall not be increased. <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 17019, Dec. 27, 2000>
(8) Where the head or a contracting officer of a central government agency intends to determine a successful tenderer or execute a contract pursuant to paragraph (5) or (6), he/she shall clearly state the scope of works for which working plans shall be submitted first, the deadline for submission, matters regarding the preparation and submission of calculation sheets, etc. in the tender guide, etc. and shall ensure that persons intending to participate in the tendering procedure are informed thereof before making tenders. <Newly Inserted by Presidential Decree No. 16548, Sep. 9, 1999>
 Article 88 Deleted. <by Presidential Decree No. 16548, Sep. 9, 1999>
 Article 89 (Compensation for Design Cost)
(1) The head or any contracting officer of a central government agency may partially reimburse all or some of the following persons for design cost within budgetary limits: <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 25679, Nov. 4, 2014>
1. A person that has been selected, but fails to be determined as a successful tenderer under Article 86 (2) or 87;
2. A person that has participated in a tendering procedure for alternatives or for a turnkey project, which is revoked due to a cause for which the authority awarding the contract is liable.
(2) Necessary matters concerning the criteria, procedures, etc. for reimbursement for the design cost under paragraph (1) shall be determined by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
 Article 90 Deleted. <by Presidential Decree No. 19483, May 25, 2006>
 Article 91 (Restriction on Adjustment of Contract Price Following Design Modification)
(1) Even where a contract for a large construction project is to be amended due to design modification for a tendering procedure for alternatives or for a turnkey project, no contract price may be increased, except where the cause of such modification is a fault attributable to the Government, a natural disaster, or any force majeure event. <Amended by Presidential Decree No. 15186, Dec. 31, 1996; Presidential Decree No. 16548, Sep. 9, 1999>
(2) If working plans are modified in a tendering procedure for a turnkey project due to any of the following causes not attributable to a person qualified for the working plans before executing a contract therefor, the head or a contracting officer of the competent central government agency shall adjust the contract price according to the design modification immediately after executing the contract. <Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 25358, May 22, 2014>
1. Where it is necessary to modify working plans in connection with a civil complaint, an environmental impact assessment, a traffic impact assessment, or conditions of authorization or permission under a relevant statute;
2. Where the authority awarding the relevant contract requires to make a modification in connection with matters not stated or reflected in the master plan, tender guide, or basic plans presented by the authority awarding the contract;
3. Where the Central Construction Technology Deliberation Committee or the Technology Advisory Committee requires to make a modification in the course of deliberation on working plans.
(3) When it is intended to adjust a contract price in cases of paragraphs (1) or (2), such adjustment shall be made in accordance with the following criteria: <Amended by Presidential Decree No. 15614, Feb. 2, 1998; Presidential Decree No. 16548, Sep. 9, 1999; Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 20319, Oct. 10, 2007>
1. The unit price for the decreased quantity of construction works: The unit price on the calculation sheets submitted pursuant to Article 85 (2) or (3);
2. The unit price for the increased quantity of construction works: The unit price determined by agreement between parties to the contract within the maximum of the unit price calculated as at the time of design modification and the unit price on the calculation sheets under subparagraph 1: Provided, That if parties to the contract fail to reach an agreement, 50/100 of the aggregate of the unit price calculated as at the time of design modification and the unit price on the calculation sheets under subparagraph 1 shall be determined as the applicable unit price;
3. The unit price for a new expense item for which no unit price is specified in the calculation sheets under the provisions of subparagraph 1: The unit price calculated as at the time of design modification.
 Article 91-2 Deleted. <by Presidential Decree No. 19483, May 25, 2006>
 Article 92 (Evaluation)
After completion of the final inspection on a large construction project, the head or a contracting officer of a central government agency may organize an evaluation team and conduct an evaluation on the project plan, work process, performance, effects, etc. of the large construction project.
CHAPTER VII DISCLOSURE, ETC. OF INFORMATION ABOUT CONTRACTS
 Article 92-2 (Disclosure of Information about Contracts)
(1) The head or a contracting officer of a central government agency shall disclose matters prescribed by Ordinance of the Ministry of Strategy and Finance with regard to a quarterly plan for awarding a contract, specifications for the objects of contracts for which bids are invited, the conclusion of contracts, and the execution and amendment of contracts through the E-Procurement System or an information processing system designated and publicly notified by the head of the central government agency under the proviso to Article 39 (1): Provided, That the foregoing shall not apply to negotiated contracts made in connection with the relocation of military forces for an operation under Article 26 (1) 1 (a) or due to a cause specified in Article 26 (1) 1 (b) or 5 (d). <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 24728, Sep. 17, 2013; Presidential Decree No. 27475, Sep. 2, 2016>
(2) If a change occurs to any fact disclosed pursuant to paragraph (1), the head or a contracting officer of the competent central government agency shall disclose the changed fact without delay.
[This Article Newly Inserted by Presidential Decree No. 19035, Sep. 8, 2005]
 Article 93 (Reporting on Results of Contracts)
The head or a contracting officer of a central government agency shall submit a report on matters specified by Ordinance of the Ministry of Strategy and Finance with regard to the execution and amendment of contracts within 30 days after the execution or amendment of a contract: Provided, That the foregoing shall not apply to negotiated contracts made in connection with the relocation of military forces for an operation under Article 26 (1) 1 (a) or due to a cause specified in Article 26 (1) 1 (b) or 5 (d). <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22282, Jul. 21, 2010>
[This Article Wholly Amended by Presidential Decree No. 19035, Sep. 8, 2005]
 Article 94 (Establishment of Contracting Council)
(1) The head or any contracting officer of a central government agency may establish and operate a Contracting Council, which shall provide advice on the following matters in relation to goods, construction projects, services, etc. as requested: <Amended by Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 20319, Oct. 10, 2007; Presidential Decree No. 26321, Jun. 22, 2015>
1. Inquiries made by the authority awarding a contract with regard to the prerequisites for qualification for participation in tendering, restrictions on qualification of improper businessmen for participating in tendering, and other matters related to a contract;
2. Matters on which a tenderer or the counter-party to a contract asks questions or requests rectification in connection with tendering or the execution or performance of a contract;
3. Deleted. <by Presidential Decree No. 27475, Sep. 2, 2016>
(2) The Contracting Council under paragraph (1) shall be comprised of public officials of the competent government agency, persons with abundant knowledge and experience in contracting, persons recommended by non-governmental organizations (referring to non-profit, non-governmental organizations defined in Article 2 of the Assistance for Non-Profit, Non-Governmental Organizations Act), etc. taking their gender into consideration. <Amended by Presidential Decree No. 19035, Sep. 8, 2005; Presidential Decree No. 26321, Jun. 22, 2015>
(3) Necessary matters in detail regarding the formation and operation of a Contracting Council under paragraph (1) shall be determined by the head of each central government agency. <Amended by Presidential Decree No. 26321, Jun. 22, 2015>
[This Article Newly Inserted by Presidential Decree No. 17019, Dec. 27, 2000]
 Article 95 Deleted. <by Presidential Decree No. 19035, Sep. 8, 2005>
 Article 96 (Use of E-Procurement System)
(1) Deleted. <by Presidential Decree No. 24728, Sep. 17, 2013>
(2) Neither the head or a contracting officer of a central government agency nor the Administrator of the Public Procurement Service, who manages and operates the E-Procurement System, shall use information about restrictions on qualification of improper businessmen for participating in tendering under Article 76, reports on the results of contracts under Article 93, and other matters related to contracts, for any purpose other than the assigned duties. <Amended by Presidential Decree No. 24728, Sep. 17, 2013>
[This Article Newly Inserted by Presidential Decree No. 17688, Jul. 30, 2002]
CHAPTER VIII CONTRACTS MADE THROUGH TENDERING TECHNICAL PROPOSALS, ETC.
 Article 97 (Scope of Application, etc.)
The head or a contracting officer of a central government agency may execute a contract for the construction project for a facility through a tendering procedure for a technical proposal for working plans or for basic plans, if symbolic, commemorative, or artistic value is deemed necessary or a highly difficult technique is required for the construction project, in accordance with the provisions of this Chapter, but matters not expressly provided for in this Chapter shall be governed by the provisions of other Chapters of this Decree. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
1. and 2. Deleted. <by Presidential Decree No. 22282, Jul. 21, 2010>
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 98 (Definitions)
The terms used in this Chapter shall be defined as follows: <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
1. The term “technical proposal" means documents through which a tenderer proposes a plan for the reduction of construction cost, a plan for the reduction of the construction period, or a plan for the management of a construction project after reviewing design documents, etc. distributed by the authority awarding a contract;
2. The term "tendering procedure for a technical proposal for working plans“ means a tendering procedure in which a tenderer shall prepare a technical proposal under subparagraph 1 in accordance with the working plans and tender guide distributed by the authority awarding a contract and shall submit the proposal along with tender documents;
3. The term "tendering procedure for a technical proposal for basic plans“ means a tendering procedure in which a tenderer shall prepare a technical proposal under subparagraph 1 in accordance with the basic plans and tender guide distributed by the authority awarding a contract and shall submit the proposal along with tender documents.
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 99 (Deliberation, etc. on Methods for Tendering in Tendering Procedure for Technical Proposal for Basic Plans or Working Plans)
(1) Where the head or a contracting officer of each central government agency intends to invite tenders for a technical proposal for detailed design or for a technical proposal for basic design (hereinafter referred to as “bidding for a technical proposal for detailed design, etc.”) with respect to a construction project provided for in Article 97, he/she shall go through deliberation on the following by the Central Construction Technology Deliberation Committee: <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 27475, Sep. 2, 2016>
1. Matters concerning the method of bidding;
2. Matters concerning the method of determining a successful bidder under Article 102 (1);
3. Matters concerning the method of determining a person eligible for detailed design under Article 102 (2).
(2) When the head of a central government agency intends to undergo deliberation by the Central Construction Technology Deliberation Committee pursuant to paragraph (1), he/she shall submit a master plan for the execution of construction projects specified in Article 97, which shall be executed during and after the pertinent year, in the following order, but matters regarding the method for preparing a master plan for execution with regard to a tendering procedure for a technical proposal for working or basic plans, the timing to submit such master plan for execution, etc. shall be prescribed by Ordinance of the Ministry of Strategy and Finance: <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 25033, Dec. 30, 2013>
1. After basic plans are formulated, they shall be submitted for the construction projects which are to be awarded through a tendering procedure for a technical proposal for basic plans;
2. If it is determined not to award construction projects through a tendering procedure for a technical proposal for basic plans, working plans shall be prepared and submitted for construction projects which are to be awarded through a tendering procedure for a technical proposal for working plans.
(3) Article 80 (3) and (5) shall apply mutatis mutandis to a public announcement of tendering methods, etc.
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 100 (Qualification for Participation in Tendering Procedure for Technical Proposal for Working or Basic Plans)
Article 12 (1) shall apply mutatis mutandis to a tendering procedure for a technical proposal for working plans, and Article 84 (1) to a tendering procedure for a technical proposal for basic plans, respectively.
[This Article Wholly Amended by Presidential Decree No. 22282, Jul. 21, 2010]
 Article 101 Deleted. <by Presidential Decree No. 22282, Jul. 21, 2010>
 Article 102 (Selection of Methods, etc. for Determining Successful Bidders in Tendering Procedures for Technical Proposal for Working or Basic Plans)
(1) In a tendering procedure for a technical proposal for detailed design, the head or a contracting officer of the competent central government agency shall determine a successful tenderer through a method deemed by the Central Construction Technology Deliberative Committee to be most suitable for the relevant construction project among the following methods, from among persons selected pursuant to Article 104, taking into consideration the purposes, characteristics, etc. of the relevant construction project. <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 27475, Sep. 2, 2016>
1. Methods of determining the lowest tenderer as a successful tenderer;
2. Methods of determining the person whose tender price adjusted by dividing the tender price by points for his/her technical proposal is the lowest or the person whose tender price adjusted by dividing points for his/her technical proposal by his/her tender price is the greatest as a successful tenderer;
3. Methods of determining the person whose points computed by adding a weight to points for his/her technical proposal and price points and aggregating the results respectively evaluated are the greatest as a successful tenderer.
(2) In a tendering procedure for a technical proposal for basic design, the head or a contracting officer of each central government agency shall determine a person eligible for detailed design through a method deemed by the Central Construction Technology Deliberative Committee to be most suitable for the relevant construction project among the following methods, from among persons selected as qualified for a technical proposal pursuant to Article 106 (1), taking into consideration the purposes, characteristics, etc. of the relevant construction project. <Amended by Presidential Decree No. 22282, Jul. 21, 2010; Presidential Decree No. 27475, Sep. 2, 2016>
1. Methods of determining the lowest tenderer as a person qualified for working plans;
2. Methods of determining the person whose tender price adjusted by dividing the tender price by points for his/her technical proposal is the lowest or the person whose tender price adjusted by dividing points for his/her technical proposal by his/her tender price is the greatest as a person qualified for working plans;
3. Methods of determining the person whose points computed by adding a weight to points for his/her technical proposal and price points and aggregating the results respectively evaluated are the greatest as a person qualified for working plans.
(3) The head or a contracting officer of a central government agency shall clearly state the method selected pursuant to paragraph (1) or (2) for determining a successful tenderer or a person qualified for working plans in the public notice of a tender.
(4) The head of a central government agency shall determine the methods and weights for calculating points for a technical proposal and price points necessary for the method for determining a successful tenderer or a person qualified for working plans under paragraphs (1) or (2), the formula for adjusting technology and prices, and other necessary matters, so that persons intending to participate in a tendering procedure can inspect such information.
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 103 (Tendering Procedures for Technical Proposal for Working Plans)
(1) In a tendering procedure for a technical proposal for working plans, the head or a contracting officer of the competent central government agency shall require tenderers to submit a technical proposal that includes the following contents: Provided, That, the details may be partially modified, if necessary in light of characteristics, etc. of a construction project: <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
1. A plan for the reduction of construction cost by reviewing the efficiency in execution, etc.;
2. A plan for the improvement of the life cycle cost;
3. A plan for the reduction of the construction period;
4. A plan for the management of the construction project;
5. Calculation sheets in which the quantity and unit prices are clearly stated by reflecting the design documents distributed by the authority awarding the contract and the technical proposal submitted by each tenderer;
6. Other matters required in the public notice of a tender.
(2) The head of a central government agency shall determine detailed criteria for examination and evaluation of technical proposals submitted pursuant to paragraph (1) and shall make the criteria available for inspection to persons who intend to participate in tendering.
(3) Upon receipt of technical proposals under paragraph (1), the head or a contracting officer of a central government agency shall request the Central Construction Technology Deliberation Committee to examine whether the technical proposals are appropriate and evaluate points for such proposals, and the Central Construction Technology Deliberation Committee shall examine the feasibility of technical proposals as requested and shall dispatch documents that clearly states the appropriateness of the technical proposals and the evaluated points to the head or a contracting officer of the competent central government agency.
(4) The head or a contracting officer of a central government agency may substitute the examination of technical proposals and the evaluation of points under paragraph (3) with the examination and the evaluation of points by the Technology Advisory Committee. <Amended by Presidential Decree No. 25358, May 22, 2014>
(5) If the Central Construction Technology Deliberation Committee or the Technology Advisory Committee discovers that the details of a technical proposal is insufficient or ambiguous, compared with the master plan, guidelines, or design documents for the relevant tendering procedure while it examines technical proposals pursuant to paragraphs (3) or (4), it may require the tenderer concerned to supplement the proposal. <Amended by Presidential Decree No. 25358, May 22, 2014>
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 104 (Determination of Successful Tenderer in Tendering Procedure for Technical Proposal for Working Plans)
Upon receipt of the notice under Article 103 (3) in a tendering procedure for working plans, the head or a contracting officer of the competent central government agency shall select not more than six tenderers with the highest points for a technical proposal (or all tenderers notified as qualified, if the number of tenderers notified as qualified is less than six), from among tenderers, and shall determine a successful tenderer by applying the method for determining a successful tenderer selected under Article 102 (1): Provided, That the number of persons selected as qualified for working plans under Article 103 (3) is not more than one person, the second public notice of the tender shall be given. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 105 (Tendering Procedures for Technical Proposal for Basic Plans)
(1) In a tendering procedure for a technical proposal for basic plans, the head or a contracting officer of the competent central government agency shall require tenderers to submit a technical proposal that includes the following contents: Provided, That, the details may be partially modified, if necessary in light of characteristics, etc. of a construction project: <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
1. A plan for the reduction of construction cost by reviewing the efficiency, etc. in execution;
2. A plan for the improvement of the life cycle cost;
3. A plan for the reduction of the construction period;
4. A plan for the management of the construction project;
5. Other matters required in the public notice of a tender.
(2) The head of a central government agency shall determine detailed criteria for examination and evaluation of technical proposals submitted pursuant to paragraph (1) and shall make the criteria available for inspection to persons who intend to participate in tendering.
(3) The head or a contracting officer of a central government agency shall only require persons selected as qualified for working plans under Article 106 (1) to submit working plans and shall require to submit the following drawings and documents along with the working plans: <Amended by Presidential Decree No. 25358, May 22, 2014>
1. An explanatory note in detail regarding the working plans;
3. A calculation sheet that clearly states the unit price and quantity;
4. Documents describing other matters for reference;
(4) In cases falling under any of the following, the head or a contracting officer of a central government agency shall request the Central Construction Technology Deliberation Committee to examine whether the technical proposal or detailed design is appropriate and evaluate points for such proposal or detailed design, and the Central Construction Technology Deliberation Committee shall examine the feasibility of technical proposals or detailed design as requested and shall dispatch documents that clearly states the appropriateness of the technical proposals or detailed design and the evaluated points to the head or a contracting officer of the competent central government agency. <Amended by Presidential Decree No. 27475, Sep. 2, 2016>
1. Where he/she has received the technical proposal pursuant to paragraph (1) or detailed design pursuant to paragraph (3);
2. Where only one bidder has submitted a bid as a result of a call for bids made again under Article 30 for a construction project solicited for technical proposal for basic design, in which case the head or the contracting officer of the central government agency has received a technical proposal or detailed design.
(5) The head or a contracting officer of a central government agency may substitute the examination of technical proposals or working plans and the evaluation of points under paragraph (4) with the examination and the evaluation of points by the Technology Advisory Committee. <Amended by Presidential Decree No. 25358, May 22, 2014>
(6) If the Central Construction Technology Deliberation Committee or the Technology Advisory Committee discovers that the details of drawings and documents attached to a technical proposal or working plans are insufficient or ambiguous, compared with the master plan, guidelines, or basic plans for the relevant tendering procedure (including a technical proposal, if working plans are examined) while it examines technical proposals or working plans pursuant to paragraphs (4) or (5), it may require the tenderer concerned to supplement the proposal or plans. <Amended by Presidential Decree No. 25358, May 22, 2014>
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 106 (Selection of Successful Tenderer in Tendering Procedure for Technical Proposal for Basic Plans)
(1) Upon receipt of the notice under Article 105 (4) in a tendering procedure for a technical proposal for basic plans, the head or a contracting officer of the competent central government agency shall select not more than six tenderers with the highest design points for a technical proposal (or all tenderers notified as qualified, if the number of tenderers notified as qualified is less than six), from among tenderers, and shall determine a person qualified for working plans by applying the method for determining a person qualified for working plans under Article 102 (2): Provided, That the number of persons qualified for a technical proposal under Article 105 (4) is not more than one, the second public notice of the tender shall be given. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
(2) Upon receipt of the notice of appropriateness of relevant working plans from the Central Construction Technology Deliberation Committee or the Technology Advisory Committee under Article 105 (4) or (5), the head or a contracting officer of a central government agency shall determine a person that submitted the working plans as a successful tenderer. <Amended by Presidential Decree No. 25358, May 22, 2014>
(3) Article 87 (3) through (8) shall apply mutatis mutandis to the determination of a successful tenderer in a tendering procedure for a technical proposal for basic plans. <Amended by Presidential Decree No. 22282, Jul. 21, 2010>
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
 Article 107 (Reimbursement of Cost for Preparation of Tender Requiring Technical Proposal)
(1) The head or any contracting officer of the competent central government agency may partially reimburse all or some of the following persons for cost for the preparation of their proposals within budgetary limits:
1. A person that has been selected, but fails to be determined as a successful tenderer under Article 104 or 106 (1);
2. A person that has participated in a tender requiring a technical proposal, which is revoked due to a cause for which the authority awarding the contract is liable.
(2) Necessary matters concerning the criteria, procedures, etc. for the reimbursement payment under paragraph (1) shall be determined by the Minister of Strategy and Finance.
[This Article Newly Inserted by Presidential Decree No. 25679, Nov. 4, 2014]
 Article 108 (Adjustment of Contract Price according to Design Modification)
Where the adjustment of a contract price is required according to design modification, Article 65 shall apply mutatis mutandis to the contract for a construction project through a tendering procedure for a technical proposal for working plans, and Article 91 to the contract for a construction project through a tendering procedure for a technical proposal for basic plans, respectively.
[This Article Wholly Amended by Presidential Decree No. 22282, Jul. 21, 2010]
 Article 109 (Evaluation)
(1) After completion of the final inspection on a construction project under this Chapter, the head or a contracting officer of a central government agency may organize an evaluation team and conduct an evaluation on the appropriateness of the method for awarding the construction project, work process, performance, effects, etc. of the construction project.
(2) Matters regarding the formation and operation of an evaluation team and other matters necessary for evaluation shall be determined by the head of each central government agency.
[This Article Newly Inserted by Presidential Decree No. 20319, Oct. 10, 2007]
CHAPTER IX PETITIONS FOR OBJECTION AND STATE CONTRACT CONCILIATION COMMITTEE
 Article 110 (Standards for Minimum Amount of Government Procurement Contract Eligible for Petition for Objection)
(1) “The amount specified by Presidential Decree” in Article 28 (1) of the Act means any of the following amounts: <Amended by Presidential Decree No. 25679, Nov. 4, 2014>
1. In cases of a contract for a construction project: Seven billion won;
2. In cases of a contract for goods: 150 million won;
3. In cases of a service contract: 150 million won.
(2) "Matters specified by Presidential Decree" in Article 28 (1) 5 of the Act means the following matters: <Newly Inserted by Presidential Decree No. 25679, Nov. 4, 2014>
1. Matters concerning the adjustment of contract prices under Articles 64 through 66, 91, and 108;
2. Matters concerning the penalty for delay and the scope of inclusion in the number of delayed days under Article 74.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 111 (Members, etc. of State Contract Disputes Conciliation Committee)
(1) "Public officials who belong to central administrative agencies prescribed by Presidential Decree" in Article 29 (3) of the Act means public officials who belong to the Senior Executive Service of the Ministry of Strategy and Finance, the Ministry of Science and ICT, the Ministry of National Defence, the Ministry of the Interior and Safety, the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, the Public Procurement Service, and other central administrative agencies deemed necessary by the Minister of Strategy and Finance, who are one public official each designated by the head of the relevant agency. <Amended by Presidential Decree No. 28211, Jul. 26, 2017>
(2) Members of the State Contract Disputes Conciliation Committee (hereafter referred to as the "Committee" in this Chapter) under Article 29 (1) of the Act shall serve on a part-time basis.
(3) Articles 76-6 through 76-8 and 76-11 through 76-13 shall apply mutatis mutandis to duties of the chairperson, the operation of the Committee, allowances for its members, etc.
[This Article Wholly Amended by Presidential Decree No. 27475, Sep. 2, 2016]
 Article 112 (Examination)
(1) Upon receipt of the notice of a petition filed for examination and conciliation under Article 30 (1) of the Act, the head of a central government agency shall submit his/her opinion thereon in writing to the Committee within 14 days from the date on which he/she is notified thereof.
(2) The Committee may require a petitioner and the head of the competent central government agency to submit documents relevant to the issue regarding which examination and conciliation is requested and may request specialized institutions to conduct appraisals, examinations, or tests, if necessary.
(3) The Committee shall give opportunities to express opinions to a petitioner and the head of the competent central government agency before closing examination and conciliation and may summon the petitioner, the head of the competent central government agency, their representatives, and witnesses or relevant experts to the Committee to hear their opinions, if necessary.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 113 (Conciliation)
(1) The Committee shall prepare a draft conciliation agreement according to the results of examination of a petition for conciliation and shall notify the petitioner and the head of the competent central government agency thereof.
(2) If it is recognized when a draft conciliation agreement is prepared that a person has suffered disadvantage by an act specified in Article 28 (1) of the Act, the head or a contracting officer of the competent central government agency shall be required to revoke or rectify the act conducted by him/her or compensate the petitioner for the injury or loss inflicted by such act.
(3) The compensation for the injury or loss under paragraph (2) may be limited to expenses incurred in the courses of the preparation of a tender and the petition for conciliation.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 114 (Suspension of Conciliation)
If a lawsuit is pending in a court for the same case as the case for which a petition for conciliation has been filed to the Committee, the Committee may suspend the proceedings of examination and conciliation of the case. In such cases, the petitioner and the head of the competent central government agency shall be notified of the reasons for the suspension.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
 Article 115 (Bearing of Expenses)
(1) A petitioner shall bear expenses incurred in examination and conciliation by the Committee: Provided, That if the a petitioner and the head of a central government agency has agreed otherwise on expenses, such expenses shall be borne in accordance with the agreement.
(2) Further details regarding the bearing of expenses related to examination and conciliation by the Committee shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Newly Inserted by Presidential Decree No. 24601, Jun. 17, 2013]
CHAPTER X SUPPLEMENTARY PROVISIONS
 Article 116 (Handling of Identification Information)
If the head or a contracting officer of a central government agency deems it unavoidable for executing the following administrative affairs, he/she may handle data containing resident registration numbers under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act:
1. Administrative affairs related to qualification for participation in a competitive tendering procedure under Article 12;
2. Administrative affairs related to pre-examination of qualification for participation in tendering under Article 13;
3. Administrative affairs related to qualification for participation in a limited competitive tendering procedure under Articles 21 or 22;
4. Administrative affairs related to qualification for participation in a selective competitive tendering procedure under Article 24;
5. Administrative affairs related to contract bonds under Article 50;
6. Administrative affairs related to warranty bonds under Article 62;
7. Administrative affairs related to restrictions on qualification for participation in tendering under Article 76.
[This Article Newly Inserted by Presidential Decree No. 24317, Jan. 16, 2013]
 Article 117 (Re-Examination of Regulation)
The Minster of Strategy and Finance shall examine the appropriateness of the following matters every three years counting from each base date specified in the following subparagraphs (referring to the period that ends on the day before the base date of every third year) and shall take measures including improvement:
1. Place-limited competitive tendering under Article 21 (1) 6: January 1, 2014;
2. through 5. Deleted; <by Presidential Decree No. 27751, Dec. 30, 2016>
6. Restrictions on qualification for participation by improper businessmen in tendering under Article 76: January 1, 2014.
[This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
 Article 118 (Restrictions on Participation of Dishonest Business Operators in Bidding and Legal Fiction as Public Officials When Penalty Provisions Are Applied)
"Committees prescribed by Presidential Decree" in Article 27 (1) 7 and subparagraph 3 of Article 35 of the Act means the following committees: <Amended by Presidential Decree No. 26829, Dec. 31, 2015; Presidential Decree No. 27475, Sep. 2, 2016>
1. The Committee for Comprehensive Examination on Tendering System pursuant to Article 42 (7);
2. The committee for the evaluation of proposals established under Article 43 (8);
3. The Contracting Council established under Article 94 (1).
[This Article Newly Inserted by Presidential Decree No. 26321, Jun. 22, 2015]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on July 6, 1995. (Proviso Omitted.)
Article 2 Deleted. <by Presidential Decree No. 15186, Dec. 31, 1996>
Article 3 (Transitional Measure concerning Execution of Contracts, etc.)
The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by previous provisions.
Article 4 Omitted.
Article 5 (Relationship to Other Statutes)
Where Chapter VI of the Enforcement Decree of the Budget and Accounts Act or the provision of the said Chapter of the said Decree have been cited by other statutes at the time when this Decree enters into force, or where the Special Regulations of the Enforcement Decree of the Act on Budget and Accounts Related to Contracts for Large Scale Construction Work or the provisions of the aforementioned Special Regulations have been cited by other statutes, this Decree and Chapter VI of this Decree, or the corresponding provisions of this Decree shall be deemed to have been cited therein.
ADDENDA <Presidential Decree No. 14973, Apr. 8, 1996>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 15186, Dec. 31, 1996>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1997.
Article 2 (Applicability to Replacement of Deposit for Difference Paid in Cash with Letter of Guarantee)
(1) With respect to a construction project for which the deposit for a difference has been paid in cash pursuant to the proviso to Article 123 (1) of the Enforcement Decree of the Budget and Accounts Act, as amended by Presidential Decree No. 14295, (hereinafter referred to as the "former Enforcement Decree of the Budget and Accounts Act"), the head or a contracting officer of a central government agency may permit the person concerned to replace the full amount of cash already paid with a letter of guarantee for the same amount: Provided, That the foregoing shall not apply to a person subject to restrictions on participation in tendering on the ground specified in any provision of Article 76 (1) 1 through 5, 7, and 8. <Amended by Presidential Decree No. 15661, Feb. 24, 1998>
(2) The head or a contracting officer of a central government agency may permit a person to replace a letter of guarantee submitted pursuant to Article 123 (1) of the former Enforcement Decree of the Budget and Accounts Act with a letter of guarantee for the same amount as the deposit for a difference paid in cash.
(3) Necessary matters regarding the methods, procedures, etc. for the replacement of a letter of guarantee under paragraphs (1) and (2) shall be determined by the Minister of Finance and Economy. <Amended by Presidential Decree No. 15661, Feb. 24, 1998>
[This Article Wholly Amended by Presidential Decree No. 15614, Feb. 2, 1998]
Article 3 (Applicability to Disposal of Deposit for Difference Paid in Cash when Extending Contract Period)
Where the head or a contracting officer of the competent central government agency is paid a deposit for a difference in cash pursuant to the proviso to Article 123 (1) of the Enforcement Decree of the Budget and Accounts Act, as amended by Presidential Decree No. 14295, with a letter or guarantee or any similar instrument, he/she may permit a counter-party of the contract to replace it with a letter of guarantee or any similar instrument, which guarantees more than the same amount after the initial contract period expires, when the contract period is extended due to a cause for which the counter-party to the contract is not liable and the counter-party requests to permit him/her to replace the deposit for the difference.
Article 4 (Transitional Measure concerning Execution of Contracts, etc.)
The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by previous provisions.
ADDENDA <Presidential Decree No. 15433, Jul. 10, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 15581, Dec. 31, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1998. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 15582, Dec. 31, 1997>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 1998.
(2) Omitted.
ADDENDA <Presidential Decree No. 15614, Feb. 2, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That an amendments to Article 42 shall enter into force one year following the date of its promulgation.
Article 2 (Repeal of other Regulations)
The Regulations on the Contract Deliberation Committee shall be hereby repealed.
Article 3 (Applicability to Replacement of Deposit for Difference Paid in Cash with Letter of Guarantee)
(1) The amended provisions of Article 2 (1) of the Addenda to Presidential Decree No. 15186 shall apply to letters of guarantee submitted pursuant to previous provisions.
(2) The amended provisions of Article 2 (1) and (3) and Article 3 of the Addenda to Presidential Decree No. 15186 shall apply mutatis mutandis to contract bonds paid in cash pursuant to the proviso to the former Article 50 (7).
Article 4 (Transitional Measure concerning Execution of Contracts, etc.)
The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by previous provisions.
Article 5 Omitted.
ADDENDA <Presidential Decree No. 15661, Feb. 24, 1998>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability) The amended provisions of Article 64 shall also apply to contracts executed before this Decree enters into force.
ADDENDA <Presidential Decree No. 16308, May 13, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 16448, Jun. 30, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 1999.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 16548, Sep. 9, 1999>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.) <Amended by Presidential Decree No. 17019, Dec. 27, 2000>
(2) (Transitional Measure concerning Execution of Contracts, etc.) The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by previous provisions.
(3) (Transitional Measure concerning Contracts Awarded for Large Construction Projects Executed by Tendering on Turnkey Basis) Large construction projects, etc. publicly announced as to be executed by tendering on a turnkey basis under Article 80 before this Decree enters into force shall be governed by previous provisions.
(4) (Transitional Measure concerning the Korea Association of Electrical Engineers) The Korea Association of Electrical Engineers under paragraph (2) of the Addenda to the Electric Technology Management Act, as amended by Act No. 5784, shall be construed as the Association of Electrical Engineers publicly notified by the Minister of Commerce, Industry and Energy under the amended provisions of Article 37 (2) 4.
ADDENDA <Presidential Decree No. 16682, Dec. 31, 1999>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2000.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 16919, Jul. 27, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 29, 2000.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 16943, Aug. 5, 2000>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) and (3) Omitted.
ADDENDA <Presidential Decree No. 17019, Dec. 27, 2000>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
(2) (Applicability to Restrictions on Qualification of Improper Businessmen for Participation in Tendering) The amended provisions of Article 76 (1) 10 shall apply to cases where a cause arises to place restrictions after this Decree enters into force.
(3) (Transitional Measure concerning Execution of Contracts, etc.) The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by previous provisions.
ADDENDA <Presidential Decree No. 17344, Aug. 25, 2001>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 17546, Mar. 25, 2002>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Effective Period) The amended provisions of Article 19 and subparagraph 14 of Article 36 shall be effective until December 31, 2003.
(3) (Transitional Measure concerning Execution of Contracts, etc.) The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by previous provisions.
ADDENDA <Presidential Decree No. 17585, Apr. 20, 2002>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) through (4) Omitted.
ADDENDA <Presidential Decree No. 17688, Jul. 30, 2002>
(1) (Enforcement Date) This Decree shall enter into force on September 30, 2002. (Proviso Omitted.)
(2) (Transitional Measure concerning E-Procurement System) The head or a contracting officer of a central government agency may apply previous provisions to cases where it is impractical to use the E-Procurement System due to any exceptional situation until December 31, 2002, notwithstanding the amended provisions of Articles 22 and 33, subparagraph 12-2 of Article 36, and Articles 39, 40 (3) and 76 (6) through (8).
(3) (Transitional Measure concerning Execution of Contracts, etc.) The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by previous provisions.
ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 17824, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2003. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 18155, Dec. 11, 2003>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
(2) (Applicability to Restrictions on Qualification of Improper Businessmen for Participation in Tendering) The amended provisions of Article 76 (1) 15 shall apply to cases where a cause arises to place restrictions after this Decree enters into force.
(3) (Transitional Measure concerning Execution of Contracts, etc.) The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 18359, Apr. 6, 2004>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measure concerning Adjustment of Contract Price Due to Price Fluctuation) The amended provisions of Article 64 shall also apply to contract executed before this Decree enters into force.
ADDENDA <Presidential Decree No. 18666, Dec. 31, 2004>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 2005. (Proviso Omitted.)
(2) and (3) Omitted.
ADDENDA <Presidential Decree No. 18903, Jun. 30, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2005.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 19035, Sep. 8, 2005>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
(2) (Applicability to Methods for Payment of Tender Bonds and Exemption therefrom) The amended provisions of Article 37 (2) 4 and (3) 5 shall apply to tenders of which the deadline for submission comes due after this Decree enters into force.
(3) (Transitional Measure concerning Adjustment of Contract Price due to Price Fluctuation or Design Modification) The amended provisions of Articles 64 (1) and (5), 65 (2) and (3) 3, the proviso to Article 91 (2) 2 shall also apply to contracts executed before this Decree enters into force.
ADDENDA <Presidential Decree No. 19321, Feb. 8, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 19463, Apr. 28, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 30, 2006.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 19483, May 25, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Changes in Methods for Guaranteeing Performance of Contract)
The amended provisions of Article 52 (2) shall also apply to contracts executed before this Decree enters into force.
Article 3 (Applicability to Restrictions on Qualification of Improper Businessmen for Participation in Tendering)
The amended provisions of Article 76 (1) 4-2, 10, 14, 14-2, and 16 shall apply to cases where a cause arises to place restrictions after this Decree enters into force.
Article 4 (Transitional Measure concerning Interest on Delay in Payments)
The payment of interest on delay in payments under a contract executed before this Decree enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of Article 59.
Article 5 (Transitional Measure concerning Execution of Contracts, etc.)
The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by the previous provisions.
Article 6 Omitted.
ADDENDA <Presidential Decree No. 19494, May 30, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 19782, Dec. 29, 2006>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
(2) (Applicability to Payment of Price) The amended provisions of Article 58 (1) shall apply to cases for which an invoice is submitted after this Decree enters into force.
(3) (Applicability to Restrictions on Qualification of Improper Businessmen for Participation in Tendering) The amended provisions of Article 76 (1) 11 shall apply to cases where a cause arises to place restrictions after this Decree enters into force.
(4) (Transitional Measure concerning Execution of Contracts, etc.) The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by the previous provisions: Provided, That the amended provisions of Article 64 (6) shall also apply to contracts for a construction project that has not been completely performed at the time when this Decree enters into force (excluding contracts for a construction project that has been completely performed before January 1, 2009), if the inflation rate of the price for a material in particular specifications is not less than 15/100. In such cases, if a contract was concluded on or before December 29, 2006, December 29, 2006 shall be deemed the date of tender and the date of execution of the contract, while December 29, 2006 shall be deemed the date of tender, if a tender was made on or before December 29, 2006. <Amended by Presidential Decree No. 21202, Dec. 31, 2008>
ADDENDA <Presidential Decree No. 19806, Dec. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2007.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20319, Oct. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of the proviso to Article 14 (6) 3 and the proviso to Article 65 (1) shall enter into force on January 1, 2008.
Article 2 (Applicability to Restrictions on Qualification of Improper Businessmen for Participation in Tendering)
The amended provisions of Article 76 (1) 6 shall apply to cases where a cause arises to place restrictions after this Decree enters into force.
Article 3 (Applicability to Adjustment of Contract Price Following Design Modification in Contract for Large Construction Project)
The amended provisions of Article 91 (2) shall apply to cases where the contract price is adjusted after this Decree enters into force.
Article 4 (Transitional Measure concerning Change in Methods for Guaranteeing Performance of Contract)
The amended provisions of Article 50 (3) shall also apply to contracts executed before this Decree enters into force.
Article 5 (Transitional Measure concerning Execution of Contracts, etc.)
The tendering procedures, the determination of a successful tenderer, and the execution of a contract after this Decree enters into force according to the public notice of a tender given before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by the previous provisions.
ADDENDA <Presidential Decree No. 20323, Oct. 15, 2007>
Article 1 (Enforcement Date)
This Decree Shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 20789, May, 21, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 26, 2008.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21202, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 (Applicability to Adjustment of Contract Price Due to Change in Exchange Rate)
The amended provisions of Article 64 (7) shall also apply to any contract that is being performed as at the time this Decree enters into force, for which there are any factors for the adjustment of contract prices under Article 64 (1) before this Decree enters into force, as a result of the change in exchange rates.
Article 3 (Applicability to Restrictions on Qualification of Improper Businessmen for Participation in Tendering)
The amended provisions of Article 76 (10) shall apply to annual contracts executed after this Decree enters into force.
ADDENDA <Presidential Decree No. 21480, May 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 8, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21565, Jun. 26, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 30, 2009. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21578, Jun. 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Effective Period)
The amended provisions of Article 72 (3) 2 shall be effective until December 31, 2015: Provided, That the amended provisions of Article 72 (3) 2 shall apply to projects concerning which the public notice of a tender is given by not later than December 31, 2015 until such projects are completed. <Amended by Presidential Decree No. 25033, Dec. 30, 2013>
Article 3 (Applicability to Scope of Deposit for Cases subject to Payment of Tender Bond)
The amended provisions of Article 37 (2) shall apply to tender bonds paid on or after this Decree enters into force.
Article 4 (Applicability to Compulsory Regional Joint Contracts)
The amended provisions of Article 72 (3) shall apply to public notice of a tender given on or after this Decree enters into force.
Article 5 (Transitional Measure concerning Deadline for Payment of Price)
The cases where an invoice was delivered for the payment of a price pursuant to previous provisions before this Decree enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of Article 58 (1) and (4).
ADDENDA <Presidential Decree No. 21692, Aug. 18, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 23, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 21698, Aug. 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 23, 2009.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21834, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 22, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22282, Jul. 21, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 7-2 (2) (limited to tendering procedures for a technical proposal for basic plans), 72 (3) 1, Articles 97 through 100, 102 through 106, and 108 shall enter into force on the date of its promulgation; the amended provisions of Article 52 (excluding paragraph (1) with the exception of its subparagraphs), and Article 9 (4) of the Addenda shall enter into force on January 1, 2011; and the amended provisions of Article 42 (4) shall enter into force on January 1, 2016. <Amended by Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 25033, Dec. 30, 2013>
Article 2 (General Applicability)
This Decree shall apply to contracts of which the public notice of a tender is given on or after this Decree enters into force.
Article 3 (Applicability to Determination of Price Based on Quotation by One Person)
The amended provisions of Article 30 (1) 3 shall apply to contracts regarding which information is published through the E-Procurement System on or after this Decree enters into force.
Article 4 (Applicability to Additional Payment of Contract Bond)
The amended provisions of Article 75 (2) shall apply to cases where the amount of compensation for delay reaches an amount equivalent to the contract bond under Article 50 (1) on or after this Decree enters into force.
Article 5 (Applicability to Restrictions on Qualification of Improper Businessmen for Participation in Tendering)
The amended provisions of Article 76 (1) shall apply to a person that has a cause to place restrictions on or after this Decree enters into force.
Article 6 (Special Exceptions to Preparation of Calculation Sheets)
"30 billion won" prescribed in the amended provisions of Article 14 (7) 1 and 2 shall be construed as "100 billion won" until December 31, 2010 and as "50 billion won" from January 1 to December 31, 2011.
Article 7 (Transitional Measures following Abolition of Negotiated Contracts with Corporations Established pursuant to Special Act)
(1) Notwithstanding the amended provisions of Article 26, the head or a contracting officer of a central government agency may execute a negotiated contract with a Saemaul factory under the previous Article 26 (1) 6 (d) or a corporation with whom he/she may execute a negotiated contract under subparagraph 8 (c) of the aforementioned paragraph (hereafter referred to as "Saemaul factory or corporation" in this Article), within the limit of the following amounts: <Amended by Presidential Decree No. 25033, Dec. 30, 2013>
1. From January 1, 2011 until December 31, 2013: The annual average amount of negotiated contracts executed by the head of the competent central government agency with the competent Saemaul factory or corporation from January 1, 2008 until December 31, 2010;
2. From January 1 until December 31, 2014: The amount equivalent to 80 percent of the annual average amount of negotiated contracts executed by a Saemaul factory or corporation with the head or a contracting officer of a central government agency, from January 1, 2008 until December 31, 2010;
3. From January 1 until December 31, 2015: The amount equivalent to 50 percent of the annual average amount of negotiated contracts executed by the Saemaul factory or a corporation with the head or a contracting officer of a central government agency, from January 1, 2008 until December 31, 2010.
(2) Notwithstanding paragraph (1), the head or a contracting officer of a central government agency may execute a negotiated contract pursuant to the previous provisions until December 31, 2015 with the Association of the Persons who Performed Special Military Missions for the Republic of Korea established pursuant to Article 54 of the Act on Assistance to Persons who Performed Special Military Missions and Establishment of Related Organizations, among corporations with whom he/she may execute a negotiated contract under Article 26 (1) 8 (c).
(3) Notwithstanding the amended provisions of Articles 26 (3) and (5) and 30 (1), the former Article 26 (2) and (4) and the proviso to Article 30 (1) shall apply where a corporation permitted to execute a negotiated contract pursuant to the former Article 26 (1) 8 (c) executes a negotiated contract pursuant to paragraphs (1) or (2).
(4) The head of the competent Ministry in charge of instructing and supervising a Saemaul factory or corporation shall supervise such factory or corporation to make sure that it complies with the limit of amounts of negotiated contracts under paragraph (1) 2 and 3 and shall adjust the amount, and he/she may request the head of each central government agency for cooperation necessary in the process. In such cases, the head of each central government agency shall comply with such request, except in extenuating circumstances. <Newly Inserted by Presidential Decree No. 25033, Dec. 30, 2013>
Article 8 (Transitional Measure concerning Negotiated Contract for Products Manufactured with Technology Newly Developed, etc.)
The amended provisions of Article 26 (1) 3 and (2) shall also apply to the goods certified or designated and governed by the former Article 26 (1) 6 (f) and 7 (i). In such cases, for the purpose of applying the amended provisions of Article 26 (2) to the goods certified or designated and governed by the former Article 26 (1) 6 (f) and 7 (i), the relevant period shall be counted from the date this Decree enters into force.
Article 9 Omitted.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22525, Dec. 13, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Presidential Decree No. 22626, Jan. 17, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 22637, Jan. 24, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 24, 2011. (Proviso Omitted.)
Articles 2 through 23 Omitted.
ADDENDA <Presidential Decree No. 22638, Jan. 26, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 5, 2011. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22660, Feb. 9, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 (Effective Period)
The amended provisions of Article 72 (3) 2 shall be effective until December 31, 2017: Provided, That the amended provisions of Article 72 (3) 2 shall apply to projects of which the public notice of a tender is given by not later than December 31, 2017 until the project ends. <Amended by Presidential Decree No. 23477, Dec. 31, 2011; Presidential Decree No. 25033, Dec. 30, 2013: Presidential Decree No. 26829, Dec. 31, 2015>
Article 3 (Applicability to Payment of Tender Bonds)
The amended provisions of Article 37 (2) 4 (q) shall apply to tender bonds paid on or after this Decree enters into force.
Article 4 (Applicability of Full or Partial Exemption of Corporations, etc. Specializing in Green Business from Tender Bond and Contract Bond)
The amended provisions of Articles 37 (3) 5-2 and 50 (6) 1 shall apply to contracts of which the public notice of a tender is given on or after the amended provisions of Articles 37 (3) 5-2 and 50 (6) 1 enter into force under the proviso to Article 1 of the Addenda.
Article 5 (Applicability to Mandatory Restrictions on Qualification of Improper Businessmen for Participation in Tendering)
The amended provisions of the proviso to Article 76 (8) shall apply to persons who violate Article 76 (1) 10 on or after this Decree enters into force.
Article 6 (Applicability to Method for Determining Persons Qualified for Working Plans in Tendering Procedure for Turnkey Project)
The amended provisions of Article 85-2 (1) 1 shall to apply to projects of which the public notice of a tender is given on or after the amended provisions of Article 85-2 (1) 1 enter into force under Article 1 of the Addenda.
Article 7 (Special Cases to Compulsory Regional Joint Contracts)
With regard to projects implemented for the development of the Gwanju-Jeonnam Joint Innovation City, designated as a zone for the development of an innovation city pursuant to Article 2 of the Addenda to the Special Act on the Construction and Support of Innovation Cities Following Relocation of Public Agencies (Act No. 8238), among projects publicly notified by the Minister of Strategy and Finance pursuant to Article 72 (3) 2, principal place of business shall be deemed the same without separating the areas within the jurisdiction of Gwangju Metropolitan City and Jeollanam-do, notwithstanding the parts other than subparagraphs of Article 72 (3).
ADDENDA <Presidential Decree No. 23267, Oct. 28, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 29, 2011.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23282, Nov. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 23313, Nov. 23, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 23477, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 (Applicability to Method, etc. for Submitting Tender Documents)
The amended provisions of subparagraphs 12 and 12-2 of Article 36, Articles 39 (1) and (2), 40 (3), 76 (1) 11, and 92-2 (1) shall apply to contracts of which the public notice of a tender is given on or after this Decree enters into force.
Article 3 (Applicability to Reimbursement for Design Cost)
The amended provisions of Article 89 (1) shall apply to contracts of which the public notice of a tender is given on or after the amended provisions of Article 89 (1) enter into force under the proviso to Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 23778, May 14, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 (Transitional Measure concerning Negotiated Contract with Facilities, etc. for Welfare of Disabled Persons)
Negotiated contracts executed with a facility or organization for the welfare of disabled persons before July 27, 2012 shall be governed by previous provisions, notwithstanding the amended provisions of Article 26 (1) 4 (c).
ADDENDA <Presidential Decree No. 24130, Oct. 8, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 24317, Jan. 16, 2013>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 24441, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 24601, Jun. 17, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 19, 2013.
Article 2 (Applicability to Qualification for Participation in Competitive Tendering)
The amended provisions of Article 12 (2) shall apply to contracts of which the public notice of a tender is give on or after this Decree enters into force.
Article 3 (Applicability to Exemption for Inspection)
The amended provisions of Article 56-2 shall apply to contracts of which the public notice of a tender is give on or after this Decree enters into force.
Article 4 (Applicability to Qualification for Participation by Improper Businessmen in Competitive Tendering)
The amended provisions of Article 76 (1) 7 shall apply to cases where a cause arises to place restrictions on or after this Decree enters into force.
ADDENDA <Presidential Decree No. 24728, Sep. 17, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2013.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 25033, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014: Provided, That the amended provisions of Article 12 (3) through (6) shall enter into force on February 14, 2014.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 25358, May 22, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 23, 2014.
Articles 2 through 14 Omitted.
ADDENDA <Presidential Decree No. 25679, Nov. 4, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 76-2 (1) 5, the proviso to Article 76-2 (2), and Article 107 shall enter into force on January 1, 2015, and the amended provisions of Article 9 (1) 3 shall enter into force on March 1, 2015.
Article 2 (Applicability to Issuance of Letter of Guarantee, etc. as Tender Bond)
(1) The amended provisions of Article 37 (1) and (2) 4 (t) shall apply to the notice of a tender made after this Decree enters into force.
(2) The amended provisions of Article 37 (2) 4 (t) shall apply where a contract is executed after this Decree enters into force and a contract bond therefor is paid under Article 50 (7).
(3) The amended provisions of Article 37 (2) 4 (t) shall apply where a warranty bond is paid under Article 62 (5) after this Decree enters into force.
Article 3 (Applicability to Warranty Period for Defects under Contract for Construction Project)
The amended provisions of the main sentence of Article 60 (1) shall apply where a contract is executed after this Decree enters into force.
Article 4 (Applicability to Long-Term Continuing Contract for Project for Construction of Information System, etc.)
The amended provisions of Article 69 (3) shall apply where the notice of a tender is made or a negotiated contract is executed after this Decree enters into force.
Article 5 (Applicability to Cases subject to Imposition of Penalty Surcharges and Criteria therefor)
The amended provisions of Article 76-2 (1) 5 and the proviso to Article 76-2 (2) shall also apply to violations committed before January 1, 2015.
Article 6 (Applicability to Reimbursement of Cost for Preparation Tender Requiring Technical Proposal)
The amended provisions of Article 107 shall apply to the notice of a tender made on or after January 1, 2015.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended parts of the Presidential Decrees promulgated before this Decree enters into force, but the enforcement dates of which have not arrived yet among the Presidential Decrees amended pursuant to Article 5 of the Addenda shall enter into force on the enforcement dates of such Presidential Decrees, respectively.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26108, Feb. 23, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 26321, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 118 shall enter into force on July 1, 2015.
Article 2 (Applicability to Restrictions on Qualification for Participation by Improper Businessmen in Tendering)
The amended provisions of Article 76 (1) 10 shall apply where any cause for restriction occurs after this Decree enters into force.
Article 3 (Transitional Measures concerning Determination of Successful Tenderer in Small Amount Tender for Manufacture and Supply of Goods)
Any public notice of a tender made before this Decree enters into force shall be governed by the former provisions, notwithstanding the amended provisions of Article 42 (2).
ADDENDA <Presidential Decree No. 26829, Dec. 31, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2016.
Article 2 (Applicability concerning Small Negotiated Contract)
The amended provision of Article 26 (1) 5 (a) shall apply beginning from where the head or a contracting officer of the competent central government agency requires to submit a written quotation after this Decree enters into force.
Article 3 (Transitional Measures concerning Determination of Successful Tenderer In Competitive Tendering)
Notwithstanding the amended provisions of Article 14 (1), (6) and (7), Article 42 (4), (6) and (7), Article 47 (1), subparagraphs 10 and 14-2 of Article 76 (1), Article 86 (6) 1 and subparagraph 1 of Article 118, the former provision shall apply to the construction project, for which the head or a contracting officer of a central government agency makes a public notice of a tender before this Decree enters into force.
ADDENDA <Presidential Decree No. 26975, Feb. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 12, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27401, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27475, Sep. 2, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 3, 2016: Provided, That the amended provisions of Articles 80 (1), (3) and (5), 85-2 (1) and (2), 94 (1) 3, 99 (1), and 102 (1) and (2) shall enter into force on January 1, 2017.
Article 2 (Applicability to Details of Tender Notice)
The amended provision of subparagraph 15-2 of Article 36 shall apply beginning with cases where the tender notice is given after this Decree enters into force.
Article 3 (Applicability to Restrictions on Qualification for Participation of Dishonest Business Operators in Bidding)
(1) The amended provision of Article 76 (1) 2 (a) shall apply beginning with cases where the tender notice is given after this Decree enters into force.
(2) The amended provision of Article 76 (1) 3 (c) shall also apply to cases where any reason for restriction arises on a contract, which was concluded before this Decree enters into force, being performed at the time this Decree enters into force.
Article 4 (Applicability to Details of Tendering Procedures for Tendering for Project on Turnkey Basis, etc.)
The amended provisions of Articles 85 (5) 3 and 105 (4) shall apply beginning with cases where the head or a contracting officer of each central government agency intends to enter into a negotiated contract for a construction project, for which bidding on a turnkey basis or bidding of a technical proposal for basic design was solicited before this Decree enters into force, pursuant to Article 27 (1) after this Decree enters into force.
Article 5 (Applicability to Determination of Person Eligible for Detailed Design in Tendering for Project on Turnkey Basis, etc.)
The amended provision of Article 85-2 (1) 1 shall apply beginning with cases where any reason for deduction of points arises after the enforcement date under the proviso to Article 1 of the Addenda.
Article 6 (Applicability to Disclosure of Information Related to Contract)
The amended provision of Article 92-2 (1) shall apply beginning with cases where the execution of the contract is completed after this Decree enters into force.
Article 7 (Transitional Measures concerning Methods, etc. of Determining Successful Bidder in Tendering for Project on Turnkey Basis, etc.)
Notwithstanding the amended provisions of Articles 80 (1), (3) and (5), 85-2 (1) and (2), 94 (1) 3, 99 (1) and 102 (1) and (2), the former provisions thereof shall apply to a construction project for which a basic execution plan was submitted pursuant to Article 80 (2) or 99 (2) before the enforcement date under the proviso to Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 27524, Sep. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted).
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 27807, Jan. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 28, 2017.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27958, Mar. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2017.
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. Provided, That the provisions amending any Decree that was promulgated before this Decree enters into force but has yet to enter into force, among Presidential Decrees amended pursuant to Article 8 of the Addenda, shall enter into force on the respective date the relevant Decree enters into force.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28586, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018. (Proviso Omitted)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28690, Mar. 6, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 64 (8) and 66 (2) shall enter into force three months after this Decree is promulgated.
Article 2 (Applicability to Adjustment of Contract Price with Price Fluctuations, etc.)
The amended provisions of Articles 64 (8) and 66 (2) shall still apply where the budget price is made or contract price is set on the enforcement date prescribed in the proviso to Article 1 of the Addenda.