ENFORCEMENT RULE ON THE ACT ON CONTRACTS TO WHICH THE STATE IS A PARTY
Ordinance Of the Economy and Finance No. 511, Jul. 6, 1995
Amended by Ordinance Of the Economy and Finance No. 602, Dec. 31, 1996
Ordinance Of the Economy and Finance No. 682, Feb. 23, 1998
Ordinance Of the Economy and Finance No. 104, Sep. 9, 1999
Ordinance Of the Economy and Finance No. 174, Dec. 30, 2000
Ordinance Of the Economy and Finance No. 251, Mar. 25, 2002
Ordinance Of the Economy and Finance No. 274, Aug. 24, 2002
Ordinance Of the Economy and Finance No. 335, Dec. 12, 2003
Ordinance Of the Economy and Finance No. 460, Sep. 8, 2005
Ordinance Of the Economy and Finance No. 508, May 25, 2006
Ordinance Of the Economy and Finance No. 512, Jul. 5, 2006
Ordinance Of the Economy and Finance No. 536, Dec. 29, 2006
Ordinance Of the Economy and Finance No. 578, Oct. 10, 2007
Ordinance Of the Economy and Finance No. 58, Mar. 5, 2009
Ordinance Of the Economy and Finance No. 95, Aug. 31, 2009
Ordinance Of the Economy and Finance No. 161, Jul. 21, 2010
Ordinance Of the Economy and Finance No. 284, May 18, 2012
Ordinance Of the Economy and Finance No. 342, Mar. 23, 2013
Ordinance Of the Economy and Finance No. 352, jun. 19, 2013
Ordinance Of the Economy and Finance No. 355, jun. 28, 2013
Ordinance Of the Economy and Finance No. 360, Sep. 17, 2013
Ordinance Of the Economy and Finance No. 443, Nov. 4, 2014
Ordinance Of the Economy and Finance No. 444, Nov. 19, 2014
Ordinance Of the Economy and Finance No. 487, jun. 30, 2015
Ordinance Of the Economy and Finance No. 533, Feb. 1, 2016
Ordinance Of the Economy and Finance No. 573, Sep. 23, 2016
Ordinance Of the Economy and Finance No. 644, Dec. 28, 2017
CHAPTER I GENERAL PROVISIONS
The terms used in this Decree shall be defined as follows: <Amended by Ordinance of the Ministry of Finance and Economy No. 335, Dec. 12, 2003; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006>
| 1. | The term "contracting officer" means a public official to whom affairs related to the contracts which become sources of revenue are delegated by the head of a central government agency, a finance officer under Article 22 of the Management of the National Funds Act (including any acting finance officer, assistant finance officer, and acting assistant finance officer; hereinafter the same shall apply); a contracting officer under Article 6 (1) of the Act on Contracts to Which the State Is a Party (hereinafter referred to as the "Act") (including any acting contracting officer, assistant contracting officer, and acting assistant contracting officer; hereinafter the same shall apply), a public officer in charge of the accounts of agency operation expenses who performs causative acts of expenditure with funds received from an expenditure officer under Article 24 of the Management of the National Funds Act (including any acting public officer in charge of the accounts of agency operation expenses, assistant public officer in charge of the accounts of agency operation expenses, and acting assistant public officer in charge of the accounts of agency operation expenses; hereinafter the same shall apply), and a public officer who is in charge of funds other than revenue and expenditure or contracts which become grounds for disbursement and receipt of funds in accordance with other statutes; |
| Article 3 (Scope of Application) |
Except as otherwise expressly provided for in any other statute, the head or a contracting officer of a central government agency shall be governed by this Rule in handling the contract affairs.
| Article 4 (Preparation of Budget Price Report) |
The head or a contracting officer of a central government agency who intends to determine a budget price in accordance with Article 9 of the Decree shall prepare a budget price report in advance.
| Article 5 (Determination of Budget Price Based on Price of Actual Transactions and Standard Market Unit Price) |
| (1) | In determining a budget price based on the price of actual transactions referred to in Article 9 (1) 1 of the Decree, it shall be based on any of the following prices, and overhead expenses and profits prescribed in Article 6 (1) 4 and 5 shall not be added separately into the relevant price of actual transactions: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | The price investigated and notified by the Administrator of the Public Procurement Service; |
| 2. | The price investigated and publicly announced by an institution specialized in price investigation which meets the criteria specified by the Minister of Strategy and Finance and is registered with the Minister of Strategy and Finance; |
| 3. | The price confirmed by the head or a contracting officer of a central government agency after directly investigating the actual transactions of the relevant goods through at least two business entities. |
| (2) | In determining a budget price based on the standard market unit price referred to in Article 9 (1) 3 of the Decree, the price shall be computed based upon the market situation and performance of works, on the basis of the unit prices on the contract, unit prices on bids, unit prices of actual construction works, etc., for each type of construction works already implemented, and necessary matters in connection therewith shall be specified by the Minister of Strategy and Finance. <Amended by Rule No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 443, Nov. 4, 2014> |
| Article 6 (Determination of Budget Price Based on Cost Accounting) |
| (1) | In determining a budget price for a construction project, or manufacture or purchase (excluding purchase of imported goods) of goods, or services by cost accounting pursuant to Article 9 (1) 2 of the Decree, the following items shall be included in the budget price: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | Material cost: An amount calculated by multiplying the quantity of material classified by specification to manufacture, construct, provide services, etc. of subject matters of the contract by the price per unit; |
| 2. | Labor cost: An amount calculated by multiplying the quantity of labor for each type of work required to manufacture, construct, provide services, etc. of subject matters of the contract by the unit cost of wage; |
| 3. | Expenses: Total amount of expenses for each item incurred for the manufacture, construction, service, etc. of subject matters of the contract; |
| 4. | Overhead expenses: An amount calculated by multiplying the total amount of material cost, labor cost, and expenses by the rate of overhead expenses prescribed in Article 8 (1) (excluding subparagraph 10); |
| 5. | Profits: An amount calculated by multiplying the total amount of labor cost, expenses (excluding the cost of items specified by the Minister of Strategy and Finance), and overhead expenses by the profit rate prescribed in Article 8 (2) (excluding subparagraph 3). |
| (2) | In determining a budget price for purchase of any import goods at a price calculated by cost accounting, the following items shall be included in the budget price: |
| 1. | Cost of imported goods denominated in foreign currencies; |
| 2. | Customs clearance fee; |
| 3. | Bonded warehouse charges; |
| 5. | Inland transport charge; |
| 6. | Charge for issuing a letter of credit; |
| 7. | Overhead expenses: An amount calculated by multiplying the total amount of items prescribed in subparagraphs 1 through 6 by the rate of overhead expenses prescribed in Article 8 (1) 10; |
| 8. | Profits: An amount calculated by multiplying the total amount of items prescribed in subparagraphs 2 through 7 by the profit rate prescribed in Article 8 (2) 3. |
| (3) | In determining a budget price pursuant to paragraph (1) or (2), the head or a contracting officer of a central government agency shall specify the matters prescribed in subparagraphs of paragraph (1) or (2), in the budget price report. |
| (4) | Items of material cost, labor cost, and expenses shall be separately specified by the Minister of Strategy and Finance. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| Article 7 (Standards for Price per Unit in Cost Accounting) |
| (1) | In conducting cost accounting under Article 6 (1), the price per unit means any of the following prices, and order of application shall be as follows: <Amended by Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | The price of actual transactions or the price investigated and publicly announced by an institution designated under Article 15 of the Statistics Act: Provided, That where the Minister of Strategy and Finance has determined the price per unit separately or where the head of a central government agency has investigated and publicly announced the price per unit consulting separately with the Minister of Strategy and Finance, the relevant price; |
| 2. | A price referred to in subparagraphs 1 through 3-1 of Article 10. |
| (2) | In applying the price prescribed in paragraph (1) 1, the head or a contracting officer of a central government agency may add an amount not exceeding 15/100 of the unit cost of wage to the relevant unit cost of wage, in any of the following cases: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| 1. | Where he/she intends to particularly use a person who has obtained a certificate of technical qualification in a skill area, from among persons who have passed national technical qualification examinations referred to in Article 10 of the National Technical Qualifications Act; |
| 2. | Where the construction project is to be implemented in an island area (including Jeju Special Self-Governing Province). |
| Article 8 (Rate of Overhead Expenses and Profit Rate in Determining a Budget Price by Cost Accounting) |
| (1) | In determining a budget price by cost accounting, the rate of overhead expenses shall not exceed the rate classified as follows: <Amended by Ordinance of the Ministry of Strategy and Finance No. 487, Jun. 30, 2015> |
| 1. | Construction projects: 6/100; |
| 2. | Manufacture or purchase of beverages and groceries: 14/100; |
| 3. | Manufacture or purchase of textiles, garments or leather products: 8/100; |
| 4. | Manufacture or purchase of wood or wooden products: 9/100; |
| 5. | Manufacture or purchase of paper, paper products, or printed publications: 14/100; |
| 6. | Manufacture or purchase of chemicals, oil, coal, rubber, or plastic products: 8/100; |
| 7. | Manufacture or purchase of nonmetallic mineral products: 12/100; |
| 8. | Manufacture or purchase of primary metal products: 6/100; |
| 9. | Manufacture or purchase of assembly metal products, machinery or equipment: 7/100; |
| 10. | Purchase of imported goods: 8/100; |
| 11. | Manufacture or purchase of other goods: 11/100; |
| 12. | Waste disposal or recycling service: 10/100; |
| 13. | Services regarding management, security guard, or cleaning of facilities: 9/100; |
| 14. | Event management or other services supporting projects: 8/100; |
| 15. | Services regarding travel, accommodation, transportation or insurance: 5/100; |
| 16. | Services regarding maintenance and repair of equipment: 10/100; |
| 17. | Other services: 6/100. |
| (2) | In determining a budget price at a price calculated by cost accounting, the profit rate shall not exceed any of the following rates: Provided, That where any extenuating circumstance makes it impracticable to attain the objective of a contract by applying the following profit rate, the head of a central government agency may determine the profit rate in excess of such profit rate in consultation with the Minister of Strategy and Finance: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | Construction projects: 15/100; |
| 3. | Purchase of imported goods: 10/100; |
| Article 9 (Preparation, etc. of Cost Accounting Bill) |
| (1) | In determining a budget price at a price calculated by cost accounting, a cost accounting bill shall be prepared: Provided, That where the head or a contracting officer of a central government agency directly prepares a budget price report based upon cost accounting, the cost accounting bill may not be prepared. |
| (2) | Where it is difficult to conduct cost accounting for himself/herself due to the special details, nature, etc. of subject matters of the contract, the head or a contracting officer of a central governmental agency may outsource the cost accounting to a cost accounting service agency which fulfills the requirements specified by the Minister of Strategy and Finance, as any of the following institutions (hereinafter referred to as "cost accounting service agency"): <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 3. | A corporation incorporated with permission, etc. of the competent authority under the Civil Act or any other statutes; |
| (3) | Where cost accounting is outsourced pursuant to paragraph (2), the head or a contracting officer of a central government agency shall cause the cost accounting service agency prepare a cost accounting bill as prescribed by this Rule and the Minister of Strategy and Finance. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| (4) | Deleted. <by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999> |
| Article 10 (Determination of Budget Price Based on Appraised Price, etc.) |
The appraised price, the price of actual transactions of similar cases, or a quoted price under Article 9 (1) 4 of the Decree means any of the following prices, and order of application shall be as follows: <Amended by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 355, Jun. 28, 2013> | 2. | Price of actual transactions of similar cases: A price of actual transactions of goods, the functions and use of which are mutually similar; |
| 3. | Quoted price: The price directly received from the other party to the contract or a third party. |
| Article 11 (Adding of Tax Amount, etc. in Determining Budget Price) |
| (1) | A budget price shall include the following amount tax: <Amended by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| (2) | For the purposes of paragraph (1), where it is intended to determine a budget price at a price calculated by cost accounting, the budget price shall be calculated by adding up the total amount of tax prescribed in subparagraphs of paragraph (1) and the amount calculated pursuant to Article 6 (1) or (2). In such cases, the price per unit of raw materials by item of cost accounting shall be the supply value after deduction of the amount tax prescribed in subparagraphs of paragraph (1), and value-added tax under paragraph (1) 1, shall be calculated by multiplying the supply value of subject matters of the contract, by the rate of value-added tax. |
| (3) | For the purposes of paragraph (2), where it is intended to determine a budget price to execute a contract with a person who supplies goods or service exempted from value-added tax pursuant to Article 26 (1) of the Value-Added Tax Act or Article 106 (1) of the Restriction of Special Taxation Act, the amount equivalent to the input amount of value-added tax of raw materials by item to be borne by the other party to the relevant contract shall be added to the amount calculated pursuant to Article 6 (1). <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 355, Jun. 28, 2013> |
| Article 12 (Determination of Budget Price When Tendering for Desired Quantity) |
| (1) | A budget price for a tender for a desired quantity under Article 17 of the Decree shall be determined based upon the unit price of the relevant goods. |
| (2) | In cases falling under paragraph (1), if the tender is for the manufacture or purchase of goods which imposes a burden on the National Treasury, the unit price of the relevant goods shall be determined on the basis of the budget price report, the basis of which is the total quantity of the goods which are the subject matters of the tender. |
| Article 13 (Change of Budget Price) |
Where there is no tenderer or successful tenderer even after making a second public announcement of a tender under Article 20 (2) of the Decree, and therefore it is impossible to execute a negotiated contract under Article 27 (1) of the Decree at the original budget price, the head or a contracting officer of a central government agency may change the budget price and call for a competitive tender according to a new procedure.
CHAPTER III METHOD OF CONTRACTING
| Article 14 (Verification of Qualification Requirements to Participate in Tendering) |
| (1) | "Requirements prescribed by Ordinance of the Ministry of Strategy and Finance" in Article 12 (1) 4 of the Decree means where a business registration certificate or a specific number for the relevant business is received pursuant to Article 168 of the Income Tax Act, Article 111 of the Corporate Tax Act, or Article 8 of the Value-Added Tax Act. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 355, Jun. 28, 2013> |
| (2) | The head or a contracting officer of a central government agency shall require each person who intends to participate in a competitive tender, to verify his/her fulfillment of the requirements under paragraph (1), by submitting a certified copy of his/her business registration certificate or specific number, and the requirements under Article 12 (1) 2 and 3 of the Decree by submitting a document issued by related institutions (including organizations, such as related associations, established under any statutes), respectively. <Amended by Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007> |
| (3) | A person who has registered his/her qualification to participate in a competitive tendering procedure pursuant to Article 15 may verify his/her qualification as prescribed in paragraph (2), by submitting a certificate of qualification to participate in a competitive tendering procedure only within the range of the items of business or goods registered. <Amended by Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002> |
| Article 15 (Registration of Qualification to Participate in Tendering) |
| (1) | In order to facilitate affairs of competitive tendering, the head or a contracting officer of a central government agency, may require interested persons to pre-register their qualification to participate in a competitive tendering procedure. This shall also apply to the alteration of any registered matters. |
| (2) | A person who intends to register his/her his/her qualification to participate in a competitive tendering procedure pursuant to paragraph (1) shall submit documents classified as follows: <Amended by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013; Ordinance of the Ministry of Strategy and Finance No. 487, Jun. 30, 2015; Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| 1. | For registration for construction works, the following documents: |
| (a) | Application for registration; |
| (b) | Documents substantiating relevant permission, authorization, license, registration, reports, etc. (only if necessary); |
| (c) | and (d) Deleted; <by Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006> |
| 2. | For registration for the manufacture or purchase of goods, the following documents: |
| (a) | Application for registration; |
| (b) | Documents substantiating relevant permission, authorization, license, registration, reports, etc. (only if necessary); |
| (c) | and (d) Deleted; <by Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006> |
| (f) | A certificate of personal seal impression or a certificate of authenticity of signature; |
| 3. | For registration for services, the following documents: |
| (a) | Application for registration; |
| (b) | Documents substantiating relevant permission, authorization, license, registration, reports, etc. (only if necessary); |
| (c) | and (d) Deleted; <by Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006> |
| (e) | A certificate of personal seal impression or a certificate of authenticity of signature. |
| (3) | The head or a contracting officer of a central government agency in receipt of an application for registration of qualification to participate in tendering under paragraph (2), shall verify the corporation registration certificate, certificate of factory registration (limited to registration for manufacture), and the following documents by sharing administrative information under Article 36 (1) of the Electronic Government Act: Provided, That if a person who intends to apply for registration of qualification to participate in a competitive tendering procedure fails to give consent to verify documents, he/she shall require the applicant to append the relevant documents (in cases of the business registration certificate, referring to a photocopy thereof): <Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010; Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012> |
| 1. | Business registration certificate, a document verifying a specific number or certification of business registration; |
| 2. | A certified copy of resident registration card (limited to individual persons); |
| 3. | Deleted. <by Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012> |
| (4) | The head or a contracting officer of a central government agency shall issue a certificate of registration of qualification to participate in tendering procedure in attached Form 1. <Amended by Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006> |
| (5) | Upon receipt of an application for registration pursuant to paragraph (1), the head or a contracting officer of a central government agency shall post such fact on the integrated national electronic procurement system defined in subparagraph 4 of Article 2 of the Electronic Procurement Utilization and Promotion Act (hereinafter referred to as "E-Procurement System"). In such cases, registered matters posted on the electronic procurement system shall also be deemed registered with the heads or contracting officers of other central government agencies. <Amended by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013; Ordinance of the Ministry of Strategy and Finance No. 487, Jun. 30, 2015> |
| (6) | The head or a contracting officer of a central government agency may allow registration of qualifications to participate in a competitive tendering procedure, to use it only for the affairs of competitive tenders under the jurisdiction of the relevant agency. In such cases, paragraph (5) shall not apply. <Amended by Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006> |
| (7) | The head or a contracting officer of a central government agency shall post the following matters related to the registration of qualification to participate in a competitive tendering procedure on the E-Procurement System: <Amended by Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013> |
| 1. | The purport such registration of qualification to participate in a competitive tendering procedure can be filed in advance; |
| 2. | Documents necessary for the registration; |
| 3. | The purport that, where any alteration is made to any matter specified in the registration of qualification to participate in a competitive tendering procedure, such alteration shall be pre-registered before participating in a tendering procedure. |
| (8) | The Administrator of the Public Procurement Service may grant a separate grace period for the registered matters posted on the E-Procurement System pursuant to paragraph (5). <Newly Inserted by Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013; Ordinance of the Ministry of Strategy and Finance No. 487, Jun. 30, 2015> |
[This Article Wholly Amended by Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002]
| Article 16 (Verification, etc. of Documents concerning Qualification to Participate in Tendering) |
| (1) | The head or a contracting officer of a central government agency shall verify whether participants in a tendering procedure is qualified and whether any of them are subject to the restriction on qualification to participate in tendering procedures under Article 76 of the Decree. |
| (2) | When any content of documents for qualification are found to be false as a result of the verification performed under paragraph (1), the head or a contracting officer of a central government agency shall notify the submitter of the relevant documents thereof and take appropriate measures necessary for supplementation, etc. of documents. |
| Article 17 (Prohibition of Unfair Restriction on Qualification to Participate in Tendering Procedures) |
Except as otherwise expressly provided for in the Decree, this Rule or any other statutes, the head or a contracting officer of a central government agency shall not restrict the participation in tendering procedures by specifying any other requirement than qualification to participate in a competitive tendering procedures under Article 12 of the Decree.
| Article 18 (Exclusion from Registration, etc. of Qualification Requirements to Participate in Tendering) |
In any of the following cases, Articles 14 through 16 shall not apply: Provided, That the same shall not apply to the verification as to whether a restriction is to be imposed on a qualification to participate in tendering pursuant to Article 76 of the Decree: <Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> | 2. | Where it is intended to execute a contract which becomes a source of revenue. |
| Article 19 (Scope of Subject Matters of Tendering for Desired Quantity) |
Cases eligible for competitive tendering for a desired quantity under Article 17 of the Decree, are specified as follows: | 1. | Where it is intended to have a large quantity of the same goods manufactured or to purchase such quantity, deemed impossible or impracticable to supply taking into account the capability or production capacity of one person; |
| 2. | Where it is intended to sell a large quantity of the same goods, deemed impossible or impracticable to supply taking into account the capability of one person; |
| 3. | Where it is intended to manufacture, purchase, or sell a large quantity of the same goods, for which division of contract to a number of suppliers or purchasers is deemed beneficial to the State in light of the price, quality, and other conditions. |
| Article 20 (Public Announcement of Competitive Tenders for Desired Quantity) |
In making public announcement of competitive tendering to be performed by the method of competitive tender for a desired quantity, the following matters shall be specified:
| 1. | The fact that it is a general competitive tendering for a desired quantity; |
| 3. | Matters concerning the adjustment between the quantity tendered and the quantity to be awarded under Article 47 (2); |
| 4. | Other matters necessary for competitive tendering for a desired quantity. |
| Article 21 (Competitive Tendering for Desired Quantity of Two or More Kinds of Goods) |
Where it is intended to call for competitive tendering for a desired quantity of at least two kinds of goods, the head or a contracting officer of a central government agency shall arrange to invite tenders for unit price and quantity of each kind of goods.
| (1) | In conducting an auction pursuant to Article 10 (2) of the Decree, the head or a contracting officer of a central government agency shall arrange to invite tenders by presenting the budget price, and after announcing the highest tender amount, he/she shall repeat the tendering procedure until no other tenderers exist, and determine a person who has tendered the highest price as the successful tenderer. |
| (2) | In cases of a tender performed under paragraph (1), the amount of tender bond shall be at least 5/100 of the budget price. |
| Article 23 (Factors to Be Considered in Evaluating Level of Fidelity to Performance of Contracts) |
[This Article Wholly Amended by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010]
| Article 23-2 (Procedures for Preliminary Examination to Grant Qualification to Participate in Tendering Procedures) |
| (1) | Period for inspection and issuance under the main sentence of Article 13 (4) of the Decree shall be from the date of public announcement of the tender to the closing date of application for preliminary examination to grant qualification to participate in a tendering procedure. |
| (2) | Application for a preliminary examination to grant qualification to participate in a tendering procedure under paragraph (1) shall commence from the date at least seven days pass from the date of public announcement of the tender, and the period for application shall be at least ten days, and such period for application shall be specified in the public announcement of the tender. |
| (3) | Where any content of documents submitted for an application for a preliminary examination to grant qualification to participate in a tendering procedure is ambiguous or if any document is missing, the head or a contracting officer of a central government agency may require the submitter thereof to supplement it setting a period not exceeding three days. |
| (4) | The head or a contracting officer of a central government agency shall conduct a preliminary examination to grant qualification to participate in a tendering procedure and post the results thereof on the E-Procurement System within ten days from the date the period for application referred to in paragraph (2) or the period for supplementation referred to in paragraph (3), passes. <Amended by Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013> |
| (5) | Where a person who has applied for a preliminary examination to grant qualification to participate in a tendering procedure has an objection to the result of the preliminary examination conducted under paragraph (4), he/she may request the head or a contracting officer of a central government agency to conduct a re-examination by not later than three days before the date of holding an on-site presentation session under Article 14-2 of the Decree. In such cases, the head or a contracting officer of a central government agency shall notify the result of the re-examination within three days from the date the request is received. |
[This Article Newly Inserted by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010]
| Article 23-3 (Subject Matters to Be Excluded from Tendering in Two-Step Competitions, etc.) |
"Services specified by Ordinance of the Ministry of Strategy and Finance" in Article 18 (1) and (3) of the Decree means any of the following services: <Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> | 2. | Meter-reading service; |
| 3. | Simple security service or management service not dependant on any security system; |
| 4. | Human resources supplying service, such as supply of event assistants; |
| 5. | Other services similar to those prescribed in subparagraphs 1 through 4, which are specified by the Minister of Strategy and Finance. |
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006]
| Article 24 (Subject Matters of Limited Competitive Tendering) |
| (1) | "Construction project in the amount prescribed by Ordinance of the Ministry of Strategy and Finance" in Article 21 (1) 1 of the Decree means a construction project with at least the following estimated price: <Amended by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| (2) | "Amount specified by Ordinance of the Ministry of Strategy and Finance" in Article 21 (1) 6 of the Decree means any of the following amounts: <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 335, Dec. 12, 2003; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | In cases of construction works: The following amount: |
| 2. | In cases of manufacture or purchase of goods, service, or other cases: Publicly notified amount. |
| Article 25 (Criteria for Limitation on Limited Competitive Tendering) |
| (1) | The head or a contracting officer of a central government agency who intends to impose limitations on the eligibility of participants in a limited competitive tendering procedure pursuant to Article 21 (1) of the Decree shall properly take into account the level of difficulty in performing the contract, the scale of the size, the status of supply and demand, etc. |
| (2) | Where the head or a contracting officer of a central government agency imposes a limitation on the eligibility of persons who intend to participate in a limited competitive tendering procedure on the basis of the past records of performance of construction works, manufacture of goods, or provision of services, or capabilities of construction as prescribed in Article 21 (1) 1 through 3 and 5 of the Decree; such past records and capabilities of construction shall be based on the following criteria: <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 644, Dec. 28, 2017> |
| 1. | In cases of a construction project, manufacture, service, etc., the following past records: Provided, That except where the achievement of the purpose of the contract is expected to be hindered, past records prescribed in item (a) shall be applied preferentially: |
| (a) | Where the limitation is to be imposed based upon the size or quantity of past records of construction works, manufacture, services, etc. (limited to contracts, the estimated price of which is equal to or higher than the publicly notified amount, in the case of manufacture or service) within a size or quantity not exceeding that of subject matters of the relevant contract; |
| (b) | Where the limitation is to be imposed based upon the amount of past records of construction works, manufacture, services, etc. (limited to contracts, the estimated price of which is equal to or higher than the publicly notified amount, in the case of manufacture or service), within an amount not exceeding the estimated price of subject matters of the relevant contract (where any other statute, such as the Framework Act on the Construction Industry, includes price for materials supplied by the Government when applying the capability for construction, referring to the estimated price; hereafter in this paragraph, the same shall apply); |
| 2. | In cases of capability for construction, within two times the relevant estimated price. |
| (3) | In imposing a limitation on the eligibility of persons who intend to participate in a limited competitive tendering procedure based on the location of the head office on the corporate registration cards pursuant to Article 21 (1) 6 of the Decree (in cases of an individual business entity, referring to the location of a place of business specified in the business registration certificate or in documents related to permission, authorization, license, registration, report, etc.; hereinafter the same shall apply), the limitation shall be imposed so as to allow only the persons whose head offices on the corporate registration cards are located within the jurisdiction of the Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do or Special Self-Governing Province (in cases of a joint innovation city under Article 31 of the Special Act on the Construction and Support of Innovation Cities Following Relocation of Public Agencies, referring to the whole area under the jurisdiction of a joint subject of construction of the relevant joint innovation city) to participate in such procedure. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012; Ordinance of the Ministry of Strategy and Finance No. 487, Jun. 30, 2015; Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| (4) | Where a Special Metropolitan City, Metropolitan City or Special Self-Governing City is newly established within the jurisdiction of a Metropolitan City, Special Self-Governing City or Do (excluding where it is incorporated into such City or Do), paragraph (3) shall apply deeming that the jurisdiction of the former Metropolitan City, Self-Governing City or Do and the jurisdiction of a newly established Special Metropolitan City, Metropolitan City or Self-Governing City are not separated from each other for three years from the date of new establishment. <Amended by Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012> |
| (5) | In limiting the eligibility of persons who intend to participate in a limited competitive tendering procedure pursuant to Article 21 (1) of the Decree, the head or a contracting officer of a central government agency shall not impose duplicate limitations on the matters prescribed in subparagraphs of the same paragraph or the matters prescribed in a same subparagraph: Provided, That where a limitation is imposed pursuant to the matter prescribed in Article 21 (1) 6 of the Decree, duplicated limitations may be imposed together with the matter prescribed in subparagraph 2 of the same paragraph; and where a limitation is imposed pursuant to the matter prescribed in Article 21 (1) 8 of the Decree, duplicated limitations may be imposed together with the matters prescribed in subparagraphs of the same paragraph. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| (6) | In determining criteria for limitation by classifying construction projects according to the nature and scale of each project into categories pursuant to Article 22 of the Decree, the head or a contracting officer of a central government agency need not impose a limitation in accordance with paragraph (2). |
| Article 26 (Notification of Qualification to Participate in Limited Competitive Tendering Procedures) |
| (1) | In giving notice for participation in a tendering procedure pursuant to Article 21 (3) or 22 (2) of the Decree to persons qualified to participate in a tendering procedure, the head or a contracting officer of a central government agency shall give notice for participation in a competitive tendering procedure in attached Form 2. |
| (2) | Notice for participation in a tendering procedure under paragraph (1) shall be given not later than seven days before the date of the on-site presentation session (where no on-site presentation session is held, not later than seven days before closing the tenders): Provided, That the notice may be given not later than five days before closing tenders in cases of emergency. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996> |
| Article 27 (Criteria for Designation of Participants in Selective Competitive Tendering Procedures) |
In designating participants in a selective competitive tendering procedure pursuant to Article 23 (1) 1 through 3, 6 or 9 of the Decree, the head or a contracting officer of a central government agency shall grant designation in accordance with the following criteria, and ensure that the principle of competition shall be properly applied: <Amended by Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> | 1. | Construction projects: |
| (a) | Where designation is to be based on capability for construction, Article 25 (2) 2 shall apply mutatis mutandis to the designation; |
| (b) | Designation of business entities shall be granted on the basis of their credit, past records, and management condition; and where any special technology is required, persons with such technology shall be designated; |
| (c) | Deleted; <by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999> |
| 2. | Manufacture, purchase, repair, processing, etc. of goods: Where it is necessary to assign a person equipped with special technology, machinery, equipment, production facility, etc. to perform the captioned matter, persons equipped with such special technology, machinery, equipment, production facility, etc. shall be designated. |
| Article 28 Deleted. <by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999> |
| Article 29 (Reporting Documents, etc. on Contracts subject to Selective Competitive Tendering Procedures) |
| (1) | A contracting officer who intends to file a report on a contract subject to a selective competitive tendering procedure pursuant to Article 23 (2) of the Decree (hereinafter referred to as "contract subject to a selective competitive tendering procedure"), shall submit a copy of the written contract executed pursuant to Article 49 (1) or (3) (including documents that should be appended to the relevant written contract; hereafter in this Article, the same shall apply), and the documents specifying the following matters to the head of the central government agency to which he/she belongs: <Amended by Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> |
| 1. | Objective of the contract; |
| 3. | Provisions of the statute applied, and the detailed grounds for applying them; |
| 4. | and 5. Deleted; <by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> |
| 6. | Other reference details. |
| (2) | When the head of a central government agency notifies the Board of Audit and Inspection of the details of a written contract subject to a selective competitive tendering procedure pursuant to Article 23 (2) of the Decree, he/she shall submit a copy of the written contract along with the documents referred to in paragraph (1). <Amended by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> |
| (3) | The head or a contracting officer of a central government agency shall receive from persons designated as participants in a selective competitive tendering procedure, and keep documents substantiating that they meet the criteria for designation prescribed in Article 27. |
| Article 30 (Notification of Qualification to Participate in Selective Competitive Tendering Procedures) |
Article 26 shall apply mutatis mutandis to notice for participation in a tendering procedure, to be given to persons qualified to participate in a selective tendering procedure.
| Article 31 Deleted. <by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| Article 32 (Determination of Other Party to Contract When Executing Negotiated Contract after Making Second Public Announcement) |
The head or a contracting officer of a central government agency who intends to execute a negotiated contract pursuant to Article 27 (1) 2 of the Decree, shall determine a person who tenders a price which is the most beneficial to the State as the other party to the contract. <Amended by Ordinance of the Prime Minister No. 682, Feb. 23, 1998>
| Article 33 (Determination of Price, etc. Based on Quotations) |
| (1) | "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 proviso to Article 30 (2) of the Decree means any of the following: <Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013> |
| 1. | Cases of specialized academic research service; |
| 2. | Cases where the freshness and quality should be considered preferentially, such as purchase of agro-fishery products or foods (including the materials thereof); |
| 3. | Other cases specified by the Minister of Strategy and Finance, where it is impractical to submit a quotation through the E-Procurement System. |
| (2) | Where the head of a contracting officer of a central government agency imposes a limitation on submission of quotations on the basis of the location of the head office on the corporate registration cards pursuant to Article 30 (4) of the Decree, the limitation may be imposed so as to allow only the persons whose head office on the corporate registration cards is located within the jurisdiction of the Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do or Special Self-Governing Province to submit quotations: Provided, That if there are at least five persons qualified to perform the relevant contract within a Si (including any administrative Si; hereafter in this paragraph, the same shall apply) or Gun (referring to a Gun within the jurisdiction of a Do; hereafter in this paragraph, the same shall apply), such limitation may be imposed so as to allow only the persons within the jurisdiction of a Si or Gun. <Amended by Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006; Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012; Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| (3) | "Cases specified by Ordinance of the Ministry of Strategy and Finance" in Article 30 (7) of the Decree means the following cases: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | A contracts on the supply of electricity, gas, water, etc.; |
| 2. | A contract for the manufacture, purchase or rental of goods, or service, the estimated price for which is less than one million won. |
| Article 34 (Tenders for Desired Quantity and Negotiated Contracts) |
Where any person fails to execute a contract among successful tenderers for a desired quantity, the head of a central government agency shall execute the contract at a price not exceeding the price of the relevant successful tenderer if it is a negotiated contract for the manufacture or purchase of goods, or at a price not lower than the price of the relevant successful tenderer if it is a negotiated contract for the sale of goods under Article 28 of the Decree.
| Article 35 (Reporting Documents, etc. on Negotiated Contracts) |
| (1) | A contracting officer of a central government agency who intends to file a report on a negotiated contract pursuant to Article 26 (5) of the Decree, shall submit a copy of the written contract executed pursuant to Article 49 (1) or (3) (including documents that should be appended to the relevant contract; hereafter in this Article, the same shall apply), and the documents specifying the following matters to the head of the central government agency to which he/she belongs: <Amended by Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| 1. | Objective of the contract; |
| 3. | Provisions of the statute applied, and the detailed grounds for applying them; |
| 4. | through 6. Deleted; <by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> |
| 7. | Other reference details. |
| (2) | When the head of a central government agency notifies the Board of Audit and Inspection of the details of a negotiated contract pursuant to Article 26 (5) of the Decree, he/she shall submit a copy of the written contract together with the documents referred to in paragraph (1). <Amended by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| Article 36 (Documents Substantiating Grounds for Application of Negotiated Contracts) |
[This Article Wholly Amended by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010]
| Article 37 (Application Mutatis Mutandis of Provisions regarding Competitive Contracts) |
Article 14 (1) and (2) shall apply mutatis mutandis to negotiated contracts. [This Article Wholly Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009]
CHAPTER IV TENDERING PROCEDURE AND PROCEDURES FOR DETERMINING SUCCESSFUL TENDER
| Article 38 Deleted. <by Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002> |
| Article 39 (Notification, etc. for Participation in Tendering Procedure) |
When the head or a contracting officer of a central government agency gives notice for participation in a tendering procedure to persons qualified to participate in the relevant tendering procedure in accordance with Article 13 or 34 of the Decree, he/she shall give notice for participation in a competitive tendering procedure in attached Form 2.
| Article 40 (Application to Participate in Tendering Procedure) |
| (1) | The head or a contracting officer of a central government agency who intends to call for a competitive tendering procedure shall require applicants to participate in the tendering procedure, to submit the following documents: Provided, That persons whose qualifications are registered pursuant to Article 15 may pay a tender bond in lieu of the submission of the following documents: |
| 1. | An application to participate in the tendering procedure; |
| 2. | Documents substantiating the applicant's qualification to participate in the tendering procedure; |
| 3. | Other documents required by the public announcement of a tender or the notification of designation. |
| (2) | When an applicant to participate in a tendering procedure has submitted the documents prescribed in subparagraphs of paragraph (1), the head or a contracting officer of a central government agency may receive them after examining the details of the documents and conduct fact-finding investigation into necessary matters. |
| (3) | Upon receipt of an application to participate in a tendering procedure, the head or a contracting officer of a central government agency shall issue a certificate of application to participate in the tendering procedure in attached Form 4: Provided, That in cases of tendering by post, such certificate need not be issued, if deemed unnecessary. |
| (4) | The deadline date for submission of application documents to participate in a tendering procedure under the main sentence of paragraph (1) shall be the date immediately preceding the closing date of the tenders. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996> |
| Article 41 (Preparation of Documents Related to Tendering) |
| (1) | "Documents specified by Ordinance of the Ministry of Strategy and Finance" in Article 14 (1) 3 of the Decree means the following documents: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| 1. | Public announcement of a tender or notice for participation in the tendering procedure; |
| 2. | Introductions to tenderers; |
| 3. | Forms of an application to participate in the tendering procedure, tender, and contract; |
| 4. | General conditions and special conditions of the contract; |
| 4-2. | Deleted; <by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| 6. | A tender guide, in cases of a construction project subject to Chapter VI or VIII; |
| 7. | Other documents specifying reference details. |
| (2) | "Documents specified for tendering by Ordinance of the Ministry of Strategy and Finance" in the main sentence of Article 16 (1) of the Decree means the following documents: <Amended by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| 1. | Documents prescribed in paragraph (1) 1 through 4; |
| 3. | Task orders in cases of a service contract; |
| 4. | Documents specifying reference details, other than the documents prescribed in subparagraph 1 through 3. |
[This Article Wholly Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996]
| Article 41-2 (Exception to Holding of On-Site Presentation Session) |
"Where it is hard to access the site or any ground exists specified by Ordinance of the Ministry of Strategy and Finance" in the proviso to Article 14-2 (2) of the Decree means where it is deemed impracticable to access the site of a construction project on the date of an on-site presentation session due to the occurrence of a disaster defined in Article 3 of the Framework Act on the Management of Disasters and Safety as at the time the public announcement of a tender is made, or where a construction project is to be implemented in any of the following areas, access to its site of which is impracticable due to geographical features of the construction site: <Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> | 1. | An area adjacent to the enemy; |
| 2. | A remote or uninhabited island distant from the mainland; |
| 3. | An area in the backwoods; |
| 4. | An area similar to one prescribed in subparagraphs 1 through 3, which is specified by the Minister of Strategy and Finance. |
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006]
| Article 42 (Tendering Methods) |
| (1) | The head or a contracting officer of a central government agency shall require each person who intends to participate in a competitive tendering procedure to submit a tender in attached Form 5 (attached Form 6, where the tendering procedure and determination of a successful tenderer are to be processed through a computer system). |
| (2) | The number of tenders to be submitted under paragraph (1) shall be one per person. |
| (3) | Where a person who intends to participate in a tendering procedure designates an agent for his/her tender or replaces the designated agent for his/her tender during the period from submission of his/her application to participate in the tendering procedures in attached Form 3, to the commencement of the tender, the head or a contracting officer of a central government agency may allow the relevant agent to participate in the relevant tender. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999> |
| (4) | Upon receipt of a tender, the head or a contracting officer of a central government agency shall affix a seal of confirmation on the relevant tender and keep the tender unopened until the time for opening tenders. |
| (5) | A personal seal impression used in the tender submitted under paragraph (1) shall be the same as the personal seal impression reported when submitting an application for participating in a tendering procedure. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| (6) | When the head or a contracting officer of a central government agency intends to execute a contract for the manufacture or purchase of goods pursuant to Article 44 (1) of the Decree, he/she shall require each tenderer to submit a manifestation of the quality, functions, efficiency, etc. of the relevant goods (hereinafter referred to as "manifestation of quality, etc.") along with a tender when submitting a tender. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000> |
| Article 43 (Payment of Tender Bond) |
| (1) | The head or a contracting officer of a central government agency shall require participants in a tendering procedure to submit a tender bond referred to in Article 37 of the Decree, in accordance with the prescribed formalities along with an application to participate in a tender in attached Form 3 by no later than the closing date of the application to participate in the tendering procedure: Provided, That in cases of a letter of guarantee which ensures the payment of tender bonds for all tenders (limited to tenders for construction projects) invited during one fiscal year, among letters of guarantee prescribed in Article 37 (2) 4 of the Decree, he/she may require them to submit it at the beginning of each year. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| (2) | A document promising payment of the amount equivalent to a tender bond pursuant to Article 37 (4) of the Decree shall be submitted when an application to participate in a tendering procedure is submitted in accordance with an application to participate in a tender in attached Form 3 or when a tender is submitted. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012> |
| Article 44 (Invalidation of Tenders ) |
| (1) | Tenders to be invalidated under Article 39 (4) of the Decree shall be as follows: <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 251, Mar. 25, 2002; Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013; Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016; Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| 1. | A tender submitted by a person without qualification to participate in the tendering procedure; |
| 1-2. | A tender submitted through a representative for whom the period of limitation on the qualification to participate in tendering procedures under Article 76 (5) of the Decree has not passed; |
| 2. | A tender submitted without paying a predetermined amount of tender bond by the deadline date and time; |
| 3. | A tender which has not arrived at the predetermined place of tender by the closing time of tenders; |
| 4. | At least two tenders submitted by a same person for a same matter (where any person is the representative of a number of corporations, all of the relevant corporations shall be deemed the same person); |
| 5. | Deleted; <by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> |
| 6. | A tender submitted without a calculation sheet for a construction project referred to in Article 14 (6) of the Decree, a tender, in cases of which the amount of the tender and the amount on the calculation sheet are mutually different, or any other tender which falls under any ground for invalidation of a tender specified by the Minister of Strategy and Finance; |
| 6-2. | Deleted; <by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| 6-3. | A tender submitted without registration of alteration of any of the following matters, to be registered pursuant to Article 15 (1): |
| (a) | Trade name or name of the corporation; |
| (b) | Name of the representative (where several representatives are appointed, names of all representatives); |
| (c) | and (d) Deleted; <by Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006> |
| 7. | Deleted; <by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 7-2. | Where tenders are required to be submitted through the E-Procurement System or an information processing system designated and publicly notified by the head of a central government agency pursuant to Article 39 (1) of the Decree, a tender submitted failing to comply with the method prescribed in the relevant provisions; |
| 7-3. | Where the purport that only the persons who have participated in a presentation session regarding the request for proposal, etc. will be eligible to participate in the contract, is specified in the public announcement of a tender while explaining the request for proposal, etc. pursuant to Article 43 (5) of the Decree, a tender submitted by a person who has not participated in the presentation session regarding the request for proposal; |
| 8. | A tender referred to in under Article 44 (1) of the Decree, for which no manifestation of quality, etc. required to be submitted along with a tender pursuant to Article 42 (6) has been submitted; |
| 10. | In cases of a tendering procedure for alternatives defined in Article 79 of the Decree, a tender submitted jointly by persons who have designed or supervised the original design; |
| 10-2. | In cases of a tendering procedure for a technical proposal for working plans defined in subparagraph 2 of Article 98 of the Decree or a tendering procedure for a technical proposal for basic plans defined in subparagraph 3 of the same Article, a tender submitted jointly by persons who have designed or supervised the original design; |
| 11. | Except as otherwise expressly provided for in subparagraphs 1 through 10, a tender in contravention of the introductions to tenderers specified by the Minister of Strategy and Finance. |
| (2) | Notwithstanding paragraph (1), where any person who is a member of a tenderer other than its representative who has organized a contracting consortium pursuant to Article 72 of the Act, falls under any ground prescribed in subparagraphs of paragraph (1), only the tender portion of the relevant member shall be invalidated. <Newly Inserted by Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| Article 45 (Indication of Grounds for Invalidation of Tenders) |
The head or a contracting officer of a central government agency who invalidates any tender shall indicate and notify the grounds and the purport for the invalidation, to the tenderers participating in the opening of the tenders at a place where tenders are opened, except in extenuating circumstances, such as where it takes a long time to verify its validity: Provided, That where it is required to submit tenders through the E-Procurement System or an information processing system designated and publicly notified by the head of a central government agency pursuant to Article 39 (1) of the Decree, he/she shall specify the grounds for the invalidation of the tender and notify the purport thereof to the tenderers in accordance with the procedure and method specified in the public announcement of the tender. <Amended by Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000; Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002; Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013>
| Article 46 (Determination of Successful Tenderer for Manufacture or Purchase of Specific Goods according to Quality, etc.) |
In determining a successful tenderer in accordance with Article 44 (1) of the Decree, the head or a contracting officer of a central government agency shall evaluate manifestations of quality, etc. submitted together with tenders under Article 42 (6), in accordance with the criteria for evaluation referred to in Article 44 (2) of the Decree; and shall determine the successful tenderer within ten days from the tender date or date of opening tenders except in special circumstances.
| Article 47 (Determination of Successful Tenderers in Tender for Desired Quantity) |
| (1) | In determining successful tenderers in a tender for a desired quantity pursuant to Article 45 or 46 of the Decree, the head or a contracting officer of a central government agency shall select preferentially a person who has tendered the highest quantity as a successful tenderer if at least two tenderers have submitted the same price at which the successful tenderer will be determined; and if the tendered quantities are identical, the successful tenderer shall be determined by drawing lots, applying mutatis mutandis Article 47 of the Decree. |
| (2) | In determining successful tenderers pursuant to paragraph (1), if the aggregate quantity submitted by the last-ranked successful tenderer and the quantity submitted by other successful tenderers exceeds the demand or sales quantity, such excess quantity shall not be deemed included in the successful tender. |
| Article 48 (Declaration of Opening Tenders and Successful Tender) |
| (1) | Upon receipt of tenders until the designated time, the head or a contracting officer of a central government agency shall declare the closing of the receipt of tenders and open tenders in the presence of tenderers: Provided, That where it is required to submit tenders through the E-Procurement System or an information processing system designated and publicly notified by the head of a central government agency pursuant to Article 39 (1) of the Decree, he/she shall close the receipt of tenders and open them in accordance with the procedure and method specified in the public announcement of the tender. <Amended by Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000; Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002; Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013> |
| (2) | Where tenders for specifications and pricing or for technology and pricing are simultaneously called for pursuant to Article 18 (3) of the Decree, the head or a contracting officer of a central government agency may open tenders for pricing even if only one person is confirmed as a person qualified in the aspect of specifications or technology as a result of opening the tenders for specification or technology which have become effective with valid tenders of at least two persons pursuant to Article 11 of the Decree. <Amended by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| (3) | Deleted. <by Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000> |
CHAPTER V EXECUTION AND PERFORMANCE OF CONTRACTS
| Article 49 (Preparation of Written Contracts) |
| (1) | Upon determining the other party to a contract, the head or a contracting officer of a central government agency shall execute a contract without delay using a standard contract form specified in attached Form 7, 8 or 9. |
| (2) | The head or a contracting officer of a central government agency may execute a contract by specifying special agreement necessary for the relevant contract, in addition to general conditions of contract specified in the standard contract. |
| (3) | Where it is deemed impractical to use a form referred to in paragraph (1), the head or a contracting officer of a central government agency may execute a contract using a separate, different contract form. |
| (4) | Where the head or a contracting officer of a central government agency, fully or partially exempts a person from the contract bond pursuant to Article 50 (6) 1 through 3 or 5 of the Decree, he/she shall specify in the contract, the grounds therefor and the amount exempted, and require him/her to submit a memorandum of payment of contract bond to append it to the contract. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Finance and Economy No. 335, Dec. 12, 2003> |
| Article 50 (Cases Where Preparation of Written Contract Is Omitted) |
The head or a contracting officer of a central government agency who omits the preparation of a written contract pursuant to Article 49 of the Decree shall receive documents which can serve as evidence of the formation of the contract, such as an invoice, memorandum, agreement, and agreed matters, from the other party to the contract and keep them: Provided, That the same shall not apply to forms separately specified by the Minister of Strategy and Financing relating to financing and accounting. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009>
| Article 51 (Payment of Contract Bond) |
| (1) | When the head or a contracting officer of a central government agency intends to execute a contract, he/she shall require the successful tenderer or the other party to the contract, to pay a contract bond referred to in Article 50 of the Decree in accordance with the prescribed formalities and submit a statement on the payment of a contract bond in attached Form 10, before executing the contract. |
| (2) | When the other party to a contract requests to substitute the tender bond paid pursuant to Article 43 for a contract bond in accordance with an application for substitution of a tender bond for a contract bond in attached Form 11, the head or a contracting officer of a central government agency, shall arrange for such substitution for contract bond. |
| Article 52 (Payment of Warranty Bond) |
Upon finishing the completion inspection of a construction project, the head or a contracting officer of a central government agency shall require the other party to the contract to pay a warranty bond pursuant to Article 62 of the Decree and submit a statement on the payment of warranty bond in attached Form 12 before the making the final payment of the price for the relevant construction project.
| Article 53 (Payment of Bonds in Cash) |
When a participant in a tendering procedure or the other party to a contract pays a bond referred to in Article 43, 51 or 52 in cash, the head or a contracting officer of a central government agency shall require a public official in charge of disbursing and receiving cash other than the revenue and expenditure, to receive it in accordance with the Rule on Handling of Money under the Government's Custody.
| Article 54 (Payment of Bonds by Securities) |
| (1) | When a participant in a tendering procedure or the other party to a contract pays a bond referred to in Article 43, 51 or 52 by securities referred to in Article 37 (2) 2 of the Decree, the head or a contracting officer of a central government agency shall require a public official in charge of securities to receive them in accordance with the Regulations on Handling of Securities under the Government's Custody. <Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| (2) | When the other party to a contract pays a bond referred to in Article 43, 51 or 52 as any registered State bond among State bonds, the head or a contracting officer of a central government agency shall require him/her to submit written consent to create a pledge right in attached Form 13 along with notice on completion of registration of State bonds, etc. and require a public official in charge of securities, to keep it in accordance with the Regulations on Handling of Securities under the Government's Custody. |
| (3) | Upon receipt of notice on completion of registration of State bonds and written consent for the establishment of a pledge right pursuant to paragraph (2), a public official in charge of securities shall take measures for creating a pledge right establishing himself/herself as the pledgee without delay, except in extenuating circumstances. |
| Article 55 (Payment of Bonds by Guarantee Insurance Policies, etc.) |
| (1) | When a participant in a tendering procedure or the other party to a contract, intends to pay a bond referred to in Article 43, 51 or 52 by a letter of guarantee for payment, guarantee insurance policy, or letter of guarantee referred to in Article 37 (2) 1, 3 or 4 of the Decree (hereinafter referred to as "guarantee insurance policy, etc."), the head or a contracting officer of a central government agency shall require him/her to submit it satisfying the following requirements, to a public official in charge of securities: <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006> |
| 1. | The name of the warrantee shall be the Government of the Republic of Korea; |
| 2. | The amount of guarantee to be paid shall be at least the amount of bond; |
| 3. | The period of guarantee of each bond shall be as follows: |
| (i) | The commencement date of the guarantee period: A date that falls on or before the closing date of tenders; |
| (ii) | The expiration date of the guarantee period: A date that falls not earlier than 30 days from the date following the closing date of tenders: Provided, That in cases of a tender for a construction project under Article 78 of the Decree, it shall be a date that falls at least 90 days from the date following closing date of tenders; |
| (i) | The commencement date of the guarantee period: A date the period of contract commences; |
| (ii) | The expiration date of the guarantee period: A date that falls on or after the expiration date of the contract period; |
| (i) | The commencement date of the warranty period: A date the subject matter is acquired or the date completion inspection is finished, whichever is earlier; |
| (ii) | The expiration date of the warranty period: A date that falls on or after the expiration date of the warranty period for defects; |
| 4. | The details of guarantee specified in the guarantee insurance policy, etc. shall guarantee the same content as the duties to be performed by the participant in the tendering procedure or the other party to the contract; |
| 5. | In cases of a guarantee insurance policy, it shall contain special agreement on guaranteeing the amount to be devolved on the National Treasury notwithstanding the grounds for exemptions specified in the general terms and conditions of the guarantee insurance policy. |
| (2) | A public official in charge of securities in receipt of a guarantee insurance policy, etc. shall verify the matters prescribed in subparagraphs of paragraph (1) and others and keep it in accordance with the Regulations on Handling of Securities under the Government's Custody. |
| Article 56 (Payment of Bonds by Term Deposit Certificates, etc.) |
| (1) | When a participant in a tendering procedure or the other party to a contract, intends to pay a bond referred to in Article 43, 51 or 52 by a term deposit certificate or beneficiary certificate referred to in Article 37 (2) 5 through 7 of the Decree (hereinafter referred to as "term deposit certificate, etc."), the head or a contracting officer of a central government agency shall require a public official in charge of securities to receive it in accordance with the Regulations on Handling of Securities under the Government's Custody. |
| (2) | Provisions concerning the submission of written consent to create a pledge right, keeping of registered State bonds, and creating a pledge right among provisions of Article 54 (2) and (3), shall apply mutatis mutandis to the payment of a bond by a term deposit certificate, etc. under paragraph (1). |
| Article 57 (Payment of Bond in Stocks) |
| (1) | When a participant in a tendering procedure or the other party to a contract intends to pay a bond in stocks (referring to a deposit certificate, where the stocks are substituted with a deposit certificate pursuant to Article 171 (4) of the Financial Investment Services and Capital Markets Act), the head or a contracting officer of a central government agency shall require him/her to pre-pay it to the bank designated for dealing with securities under the Regulations on Handling of Securities under the Government's Custody (hereinafter referred to as "bank dealing with securities") and to submit the deed of assignment of the relevant stocks and a memorandum in attached Form 14 to a public official in charge of securities, together with notice on completion of payment of securities under the Government's custody issued under the Regulations on Handling of Securities under the Government's Custody. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016> |
| (2) | Upon receipt of notice on completion of payment of securities under the Government's custody and stocks under paragraph (1), the bank dealing with securities shall verify the type, face value, mark, serial number, number of certificates, etc. of stocks and as to whether they are listed stocks; and enter the name of the holder (in cases of registered stocks, the last assignee) of the relevant stocks by stock, in a remarks column of notice on completion of payment in securities under the Government's custody issued under the Regulations of the Bank of Korea on Handling of Securities under the Government's Custody, and issue it to the person who has submitted the relevant stocks. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016> |
| Article 58 (Deed of Assignment of Stocks) |
A deed of assignment of stocks to be submitted pursuant to Article 57, shall be prepared as follows: | 1. | No name of the assignee or date of transfer shall be specified; |
| 2. | The personal seal of the assignor shall be accompanied by a seal verifying the correctness thereof, affixed by the company that has issued the relevant stocks; |
| 3. | When the issuing company has submitted many kinds of stocks which are mutually different, it shall be a deed of assignment of stocks issued by each company that has issued the stocks. |
| Article 59 (Confirmation of Payment of Bond) |
Upon receipt of a bond referred to in Article 43, 51 or 52, a public official in charge of disbursing and receiving cash other than the revenue and expenditure or a public official in charge of securities, shall affix a seal verifying the payment on the statement on the payment of bond and send it without delay to the head or a contracting officer of a central government agency to which he/she belongs.
| Article 60 (Obligations during Guarantee Period) |
The head or a contracting officer of a central government agency shall perform the following obligations imposed on the insured person under terms and conditions or special agreement of the relevant guarantee insurance contract, etc. or the Commercial Act during the guarantee period: <Amended by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005> | 4. | Obligation to allow investigation based on the terms and conditions; |
| 5. | Other obligations specified in the terms and conditions or special agreement. |
| Article 61 (Extension of Guarantee Period of Guarantee Insurance Policy, etc.) |
The head or a contracting officer of a central government agency who intends to postpone the date for executing a contract or extend the period for performing a contract or warranty period for defects, shall require the other party to the contract to submit, within the original guarantee period, to a public official in charge of securities a guarantee insurance policy, etc., which meets the provisions of Article 55 and its period is extended by aggregating the intended extension period.
| Article 62 (Adjustment, Additional Payment, etc. of Deposit When Contract Price Is Altered) |
When a contract price is adjusted pursuant to Article 64 through 66 of the Decree, the head or a contracting officer of a central government agency, shall require the other party to the contract to pay the corresponding amount additionally or return it at the request of the other party to the contract.
| Article 63 (Return of Bonds) |
| (1) | When the objective of guarantee of a bond paid pursuant to Article 37, 50 or 62 of the Decree is attained, the head or a contracting officer of a central government agency shall return it immediately at the request of the other party to the contract. |
| (2) | In cases of a construction project in which types of mutually different works are combined, the warranty bond for each type of works, the objective of the guarantee of which is attained by the expiration of the warranty period for defects by type of work under Article 70, shall be returned immediately at the request of the other party to the contract. |
| Article 64 (Devolvement of Deposits, etc. on National Treasury) |
| (1) | Where any cause for devolving the bonds paid pursuant to Article 43, 51 or 52 should be devolved on the National Treasury as prescribed in Article 38 (1) of the Decree arises, the head or a contracting officer of a central government agency, shall manage the relevant deposit as follows: <Amended by Ordinance of the Ministry of Finance and Economy No. 335, Dec. 12, 2003> |
| 1. | If the deposit is cash, he/she shall request a public official in charge of disbursing and receiving cash, other than the revenue and expenditure and the competent revenue collection officer, to collect it while notifying the purport thereof; |
| 2. | If the deposit is securities, he/she shall request a public official in charge of securities, to manage them as securities owned by the Government in accordance with the Regulations on Handling of Securities under the Government's Custody by notifying the purport thereof. In such cases if they are registered State bonds, the purport thereof shall be notified to the bank dealing with securities and a public official in charge of securities; |
| 3. | If the deposit is a guarantee insurance policy, etc., he/she shall notify the purport thereof to the competent revenue collection officer, a public official in charge of securities, and to the guarantor; and shall require them to take necessary measures to collect the relevant bond as revenue; |
| 4. | If the deposit is a term deposit certificate, he/she shall notify the purport thereof to the competent revenue collection officer, a public official in charge of securities, and the relevant financial institution and require them to take necessary measures to collect the relevant bond as revenue. |
| (2) | Deleted. <by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| Article 65 (Devolvement of Tender Bond for Competitive Tender for Desired Quantity) |
Where it is intended to devolve the deposit of the last-ranked successful tenderer on the National Treasury due to his/her failure to perform his/her obligations, if Article 47 (2) applies to the quantity awarded to the relevant successful tenderer, only the amount of tender bond in proportion to the awarded quantity shall be devolved on the National Treasury.
| Article 66 (Performance Bonds for Contracts for Construction Projects) |
| (1) | Deleted. <by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| (2) | If the other party to a contract fails to perform his/her contractual obligation, where a performance bond for a construction project is submitted pursuant to Article 52 of the Decree, the head or a contracting officer of a central government agency shall request, without delay, the institution which has issued the performance bond for the construction project to perform its obligation. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| (3) | The head or a contracting officer of a central government agency shall take prior necessary measures when executing a contract, so that when a company designated by the institution which has issued the performance bond for a construction project (hereinafter referred to as "guarantee-obligor company") performs its duties on request under paragraph (2), an amount corresponding to the portion performed by the guarantee-obligor company can be paid to the institution which has issued a performance bond for the construction project. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| (4) | Where a person who has become a guarantee-obligor company pursuant to paragraph (1) or (3), is deemed unqualified, the head or a contracting officer of a central government agency may request the institution which has issued the performance bond for the construction project to replace it. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| (5) | Paragraphs (1) through (4) may apply mutatis mutandis to a service contract. <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996> |
| (6) | Deleted. <by Ordinance of the Prime Minister No. 602, Dec. 31, 1996> |
| Article 67 (Supervision and Inspection) |
Where the details of the performance of the contract do not comply with the details of the original contract as the result of supervision or inspection, the person who has performed supervision or inspection pursuant to Article 13 or 14 of the Act shall state his/her opinion on such fact and necessary measures to be taken on a report on supervision or inspection and submit it to the head or a contracting officer of a central government agency to which he/she belongs.
| Article 68 (Detailed Matters concerning Supervision and Inspection) |
Where deemed necessary, the head of a central government agency may determine detailed guidelines for supervision or inspection.
| Article 69 (Verification When Supervision or Inspection Is Outsourced) |
Where supervision or inspection is outsourced to a specialized institution pursuant to the proviso to Article 13 (1) or 14 (1) of the Act, the head or a contracting officer of a central government agency shall receive the result thereof in writing and verify it.
| Article 70 (Warranty Period for Defects) |
| (1) | When executing a contract for a construction project pursuant to the main sentence of Article 60 (1) of the Decree, the head or a contracting officer of a central government agency shall determine the warranty period for defects, according to the type of works classified as follows: Provided, That in cases of a complex construction project, where it is impossible to distinguish defects liability among types of works excluding subparagraph 7, the warranty period for defects shall be determined based on the type of the main works: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 443, Nov. 4, 2014> |
| 8. | Construction works for the installation of facilities for the development and utilization of groundwater under the Groundwater Act, or other construction works under construction-related statutes: One year. |
| (2) | Construction works for which no warranty period for defects is to be determined pursuant to the proviso to Article 60 (1) of the Decree shall be those prescribed in subparagraphs of Article 72 (1). <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999> |
| Article 71 (Inspection of Defects) |
| (1) | A person who inspects defects under Article 61 of the Decree shall inspect defects at least twice annually regularly during the warranty period for defects under Article 70, and shall conduct a separate inspection without delay when the warranty period for defects expires. |
| (2) | Where the head or a contracting officer of a central government agency outsources inspection of defects to a specialized institution pursuant to Article 61 (2) of the Decree, he/she shall be notified of the result thereof in writing and verify it. |
| (3) | When any defect is discovered in the course of an inspection of defects performed pursuant to paragraph (1) or (2), the head or a contracting officer of a central government agency shall take necessary measures without delay. |
| (4) | When the head or a contracting officer of a central government agency inspects defects, he/she shall keep a register of defects maintenance and record and keep the following matters: |
| 1. | Name of the construction project and contract price; |
| 2. | The other party to the contract; |
| 3. | Date of completion of construction works; |
| 4. | Details of defects occurring and measures taken; |
| 5. | Other reference details. |
| Article 72 (Rate of Warranty Bond) |
| (1) | Pursuant to the main sentence of Article 62 (1) of the Decree, the head or a contracting officer of a central government agency shall determine the ratio of the warranty bond to the contract price according to the type of works (in cases of a complex construction project, where it is impossible to distinguish defects liability among types of works, referring to the type of main works) classified as follows, when executing the contract for a construction project: |
| 1. | Construction works of important structures, such as railroads, dams, tunnels, steel bridges, power generation facilities, bridges, and water and sewage structures, and landscaping works: 5/100; |
| 2. | Construction works for airports and harbors, installation of cable ways, breakwater works, anti-erosion works, or reclamation works: 4/100; |
| 3. | Construction works for irrigation canals and roads (including road-paving works), landfill works, water and sewage pipe works, river works, and general construction works: 3/100; |
| 4. | Construction works, other than those referred to in subparagraphs 1 through 3: 2/100. |
| (2) | Construction projects exemptible from the payment of a warranty bond under the proviso to Article 62 (1) of the Decree shall be as follows: <Amended by Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 352, Jun. 19, 2013; Ordinance of the Ministry of Strategy and Finance No. 443, Nov. 4, 2014> |
| 2. | Construction works which do not objectively require defect repairs in its nature, such as simple bedrock-cutting works and sand and gravel collecting works; |
| 3. | Construction works of a contract price not exceeding 30 million won (excluding landscaping works). |
| Article 73 (Direct Use of Defects Warranty Bond) |
| (1) | The head or a contracting officer of a central government agency who intends to use a warranty bond directly pursuant to Article 63 of the Decree, shall notify the purport thereof to a public official in charge of disbursing and receiving cash other than the revenue and expenditure or a public official in charge of securities and take measures necessary to repair defects. |
| (2) | When a defects warranty bond is made payable by a guarantee insurance policy, etc. referred to in Article 37 (2) of the Decree, notice for payment of the amount guaranteed shall be given to the relevant guarantor simultaneously with the notification referred to in paragraph (1). |
| (3) | A public official in charge of securities in receipt of notification under paragraph (1) shall take the following measures with respect to the securities, etc. kept by him/her: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | Where a guarantee insurance policy, etc. referred to in Article 37 (2) of the Decree, is maintained as a defects warranty bond, he/she shall request the relevant guarantor immediately to perform the guaranteed obligation; |
| 2. | Where stocks are kept as a defects warranty bond, he/she shall sell them as prescribed in the statutes related to State property, and pay the sales commission from the proceeds from the sale: Provided, That they shall not be sold, if the proceeds from the sale are deemed to fall short of the amount corresponding to the amount of the defects warranty bond; |
| 3. | Where any bond, the redemption date of the principal and interest of which is fixed, such as a listed State bond or local government bond securities, bond the payment of which is guaranteed by the State, or debenture, is kept as a defects warranty bond, he/she shall sell them as prescribed in the statutes related to State property, and pay the sales commission from the proceeds from the sale: Provided, That they shall not be sold, if the proceeds from the sale of the relevant listed securities are deemed to fall short of the amount corresponding to the amount of the defects warranty bond, or if the last redemption date of the principal and interest of the relevant listed securities arrives within 30 days from the date it is intended to sell them; |
| 4. | Where any term deposit certificate referred to in Article 37 (2) 5 of the Decree, is kept as a defects warranty bond, he/she shall request the relevant financial institution to pay it in cash. |
| (4) | When a public official in charge of securities sells securities, etc. that he/she has kept, pursuant to paragraph (3), or when the relevant guaranteed obligation is performed, he/she shall require the guarantor, etc. to pay the relevant amount directly to a public official in charge of disbursing and receiving cash other than the revenue and expenditure. |
| (5) | When the head or a contracting officer of a central government agency incurs expenditure for direct use of a defects warranty bond, he/she shall send documents related to the relevant incurring of expenditure to a public official in charge of disbursing and receiving cash other than the revenue and expenditure; however, he/she shall not incur expenditure when the listed securities submitted as a defects warranty bond are not sold as prescribed in paragraph (3) 2 or 3. |
| (6) | When a public official in charge of disbursing and receiving cash other than the revenue and expenditure, receives documents related to incurring of expenditure pursuant to paragraph (5), he/she shall pay the price for the repair of the defect from the relevant defects warranty bond. |
| (7) | Where there is any remaining balance after paying the price pursuant to paragraph (6) during the warranty period for defects referred to in Article 70 (1), the head or a contracting officer of a central government agency shall handle it in accordance with Article 64 (1). <Amended by Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000> |
| Article 74 (Adjustment of Contract Price according to Price Fluctuation) |
| (1) | The adjustment rate of goods under Article 64 (1) 1 of the Decree and the relevant increase rate or decrease rate shall be computed according to the following formula. In such cases, the goods, items, contract price, etc. to be applied therefor, shall be the portions to be fulfilled on or after the reference date of adjustment; and "agreed unit price" means the agreed price of each item of goods or item prescribed in Article 65 (3) 1 of the Decree, "price as at the time of price fluctuation" means the price of each item of goods or item computed as at the time of price fluctuation, and "price as at the time of tender" means the price of each item of goods or item computed as of the date of closing the tenders: <Amended by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005> |
| 1. | Adjustment rate of goods = Sum of amount calculated by multiplying quantity of each item of goods or item by the fluctuation width / Contract price; |
| 2. | Fluctuation width = Agreed unit price x Fluctuation rate; |
| 3. | Fluctuation rate = (Price as at the time of price fluctuation - price as at the time of tender) / Price as at the time of tender. |
| (2) | Where a contract is executed based on the budget price referred to in Article 9 (1) 1 of the Decree, the sum of amount calculated by multiplying the quantity of each item of goods or item by the fluctuation width in the formula prescribed in paragraph (1) 1, shall include overhead expenses, profits, etc. which increase or decrease in proportion to such sum. |
| (3) | The fluctuation width referred to in paragraph (1) 1 shall be computed in accordance with the following guidelines: <Amended by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005> |
| 1. | The fluctuation width when the price as at the time of price fluctuation exceeds the agreed price and the same agreed price is exceeding the price as at the time of tender, shall be calculated by deducting the agreed price from the price as at the time of price fluctuation; |
| 2. | The fluctuation width when the price as at the time of price fluctuation is exceeding the price as at the time of tender and is lower than the agreed price, shall be nil. |
| (4) | The index adjustment rate referred to in Article 64 (1) 2 of the Decree shall be computed according to the fluctuation rates of the item groups which constitute the calculation details of the contract price (referring to the contract price for the portion to be performed on or after the reference date of adjustment), the following indices, etc.: <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| 1. | Producer price index (basic classification) or import price index surveyed and publicly announced by the Bank of Korea; |
| 3. | Average index of prices surveyed and publicly announced under Article 7 (1) 1; |
| 4. | Other indices similar to those prescribed in subparagraphs 1 through 3, specified by the Minister of Strategy and Finance. |
| (5) | In adjusting a contract price pursuant to Article 64 (1) of the Decree, the portion, the amount of adjustment of which is to be calculated by multiplying by the price for the portion to be performed on or after the reference date of adjustment, out of the contract price (hereinafter referred to as "price subject to price fluctuation") by the adjustment rate of goods or index, but the performance thereof should be completed before the reference date of adjustment on the contract, shall be excluded from the price subject to price fluctuation: Provided, That where the performance is delayed due to any cause attributable to the Government or a force majeure, such as a natural disaster or calamity, it shall be included in the price subject to price fluctuation. |
| (6) | The amount to be deducted pursuant to Article 64 (3) of the Decree when advance payment is made, shall be computed according to the following formula. In such cases, the price subject to price fluctuation in a contract for a long-term ongoing construction project, contract for the long-term manufacture of goods, contract to be executed with the budget for ongoing expenditure, etc. referred to in Article 69 (2), (3) or (5) of the Decree, shall be based on the portion of contract executed in the relevant year or the amount fulfilled in the relevant year: |
Amount to be deducted = Price subject to price fluctuation x (Adjustment rate of goods or index) x Rate of advance payment.
| (7) | In computing a price as at the time of price fluctuation under paragraph (1), the same base and the method applied at the time the price as at the time of tender is computed, shall be applied: Provided, That in extenuating circumstances, such as a natural disaster or calamity, or a rapid increase in prices, the method applied to the computation of a price as at the time of tender may apply differently. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| (8) | In computing a fluctuation rate under paragraph (1), the fluctuation rate of labor cost on service contracts prescribed in the subparagraphs of Article 23-3 (limited to contracts executed on or before May 25, 2006, following public announcement of tenders) shall be calculated by applying the minimum wage under the Minimum Wage Act. <Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010> |
| (9) | The head or a contracting officer of a central government agency who intends to adjust the contract price by increasing it pursuant to paragraph (1) through (7), shall adjust it within 30 days from the date he/she receives a request for the adjustment thereof from the other party to the contract. In such cases, in extenuating circumstances, such as delay of budget allocation, he/she may extend the deadline for adjustment in consultation with the other party to the contract; and where no budget funds are available to increase the contract price, he/she may pay the price by adjusting the quantity of works, production amount, etc. <Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005> |
| (10) | The Minister of Strategy and Finance may determine necessary details concerning the adjustment of a contract price according to the price fluctuation, such as the guidelines for computation of the adjustment rate of index under paragraph (4). <Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| Article 74-2 (Adjustment of Contract Price due to Design Modification) |
| (1) | Design modification under Article 65 of the Decree shall be completed before commencing construction of the part requiring design modification: Provided, That when it is necessary to perform the construction works urgently in such cases as delayed implementation of procedure is likely to cause deterioration of quality, etc., the head or a contracting officer of a central government agency may allow the execution of construction works preferentially before completing the design modification, after setting a specific time, etc. for the design modification, in consultation with the other party to the contract. |
| (2) | Article 74 (9) and (10) shall apply mutatis mutandis to the adjustment of a contract price under paragraph (1). |
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999]
| Article 74-3 (Other Adjustment of Contract Price Following Amendment to Terms and Conditions of Contract) |
| (1) | Amending the terms and conditions of a contract, such as altering the construction period or the distance of transportation, under Article 66 of the Decree, shall be completed before commencing to perform the contract: Provided, That when it is necessary to perform the construction works urgently in such cases as delayed implementation of procedure is likely to cause deterioration of quality, etc., the head or a contracting officer of a central government agency may preferentially allow the execution of construction works before completing the design modification, after setting a specific time, etc. for the design modification in consultation with the other party to the contract. |
| (2) | Article 74 (9) and (10) shall apply mutatis mutandis to the adjustment of a contract price under paragraph (1). |
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999]
| Article 75 (Rate of Penalty for Delay) |
The rate of penalty for delay under Article 74 (1) of the Decree shall be as follows: <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010; Ordinance of the Ministry of Strategy and Finance No. 443, Nov. 4, 2014; Ordinance of the Ministry of Strategy and Finance No. 644, Dec. 28, 2017> | 1. | A construction project: 0.5/1,000; |
| 2. | Manufacture or purchase of goods (including where tenders are called for goods and services on a turnkey basis for a software project pursuant to Article 16 (3) of the Decree; hereafter in this subparagraph, the same shall apply): 0.75/1,000: Provided, That the rate shall be 0.5/1,000 where the design and manufacture is performed on a turnkey basis after the execution of the contract, and approval from the head of the central government agency which has called for tenders for the design, is needed therefor; |
| 3. | Repair, processing, rental of goods, services (excluding any service falling under the case where tenders are called for the goods and services on a turnkey basis for a software project pursuant to Article 16 (3) of the Decree), or others: 1.25/1,000; |
| 4. | Manufacture or purchase of beverages and food for military use: 1.5/1,000; |
| 5. | Transportation, storage, or processing of grains: 2.5/1,000. |
| Article 76 (Criteria for Restricting Qualification for Participation of Inappropriate Business Entities in Tendering Procedures) |
Detailed criteria for restricting qualification for participation of inappropriate business entities in tendering procedures under Article 76 (3) of the Decree shall be as specified in attached Table 2. [This Article Wholly Amended by Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016]
| Article 77 (Publication of Restriction on Qualification for Participation of Inappropriate Business Entities in Tendering Procedures) |
| (1) | If any person is deemed to be an inappropriate business entity referred to in Article 27 (1) of the Act, a contracting officer shall report such fact without delay to the head of the central government agency to which he/she belongs. <Amended by Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| (2) | Deleted. <by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999> |
| (3) | Publication under Article 76 (9) of the Decree shall be made by publishing a written verification of restriction on an inappropriate business entity in attached Form 15 on the E-Procurement System. <Amended by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013; Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| (4) | The head of a central government agency shall verify through the E-Procurement System whether participants' qualification to participate in tendering procedures is restricted. <Amended by Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013> |
| (5) | Disclosure under Article 76 (10) of the Decree shall be made by disclosing the written verification of restriction on an inappropriate business entity in attached Form 15 on the E-Procurement System during the period of restriction on participation in the tendering procedure. <Newly Inserted by Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| Article 77-2 (Cases subject to Imposition of Penalty Surcharges and Criteria Therefor) |
| (1) | The rates of penalty surcharges according to the types of offenses and the severity of violations subject to the imposition of penalty surcharges under Article 27-2 (1) of the Act and Article 76-2 of the Decree shall be as specified in attached Tables 3 and 4, classified as follows: |
| (2) | The head of a central government agency may reduce the amount of a penalty surcharge by up to one half thereof, taking into account the motive, details, frequency of the violation, etc. |
[This Article Newly Inserted by Ordinance of the Ministry of Strategy and Finance No. 352, Jun. 19, 2013]
CHAPTER VI CONTRACTS FOR LARGE CONSTRUCTION PROJECTS
| Article 78 (Submission of Master Plans to Execute Large or Specific Construction Projects) |
| (1) | The head of a central government agency shall prepare a master plan for the execution of large or specific construction projects including the following matters in accordance with Article 80 (2) of the Decree each year by no later than January 15 of the relevant year: Provided, That where a extenuating circumstance makes it impossible for him/her to submit it within the deadline, such as where the execution of the construction project is not confirmed, he/she shall prepare it immediately after such circumstance ceases to exist and submit it to the Minister of Land, Infrastructure and Transport: <Amended by Ordinance of the Prime Minister No. 602, Dec. 31, 1996; Ordinance of the Prime Minister No. 682, Feb. 23, 1998; Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 342, Mar. 23, 2013> |
| 1. | Name of each construction project; |
| 2. | Outline of each construction project; |
| 3. | Estimated price for each construction project; |
| 4. | Period of each construction project; |
| 5. | Location of each construction site; |
| 6. | Scheduled time to call for tenders; |
| 7. | Tendering methods (in cases of a tendering procedure for alternatives, matters or scope subject thereto); |
| 8. | Deleted; <by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> |
| 9. | Effects of each project; |
| 10. | Other reference details. |
| (2) | The head of a central government agency shall prepare a master plan for the execution of construction projects, dividing them into construction projects subject to tendering procedures for turnkey projects and construction projects not subject to tendering procedures for turnkey projects (hereinafter referred to as "other construction projects") before preparing master plans under Article 80 (2) 1 of the Decree; and in cases of construction projects, for which it is deemed necessary to call for tenders through a tendering procedure for alternatives after preparing working plans, among the construction projects deliberated on as other construction projects in accordance with Article 80 (3) of the Decree, he/she shall prepare a master plan for the execution of construction projects to request deliberation under paragraph (1). <Amended by Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007> |
| (3) | Notwithstanding paragraph (1), the Minister of National Defense may not submit to the Minister of Land, Infrastructure and Transport a master plan for the execution of construction projects, if the Special Deliberation Committee on Construction Technology referred to in Article 5 (2) of the Construction Technology Promotion Act is established under the jurisdiction of the Ministry of National Defense. <Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006; Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 342, Mar. 23, 2013; Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016> |
| Article 79 (Deliberation by Central Deliberation Committee on Construction Technology) |
| (1) | Upon receipt of a master plan for the execution of construction projects under Article 78 (1), the Minister of Land, Infrastructure and Transport shall require the Central Deliberation Committee on Construction Technology referred to in Article 5 (2) of the Construction Technology Promotion Act to deliberate on the tendering methods of the construction projects included in the master plan for the execution of construction projects: Provided, That he/she can require the same Committee to omit such deliberation in cases of other construction projects. <Amended by Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 342, Mar. 23, 2013; Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016> |
| (2) | When deliberation by the Central Deliberation Committee on Construction Technology is completed, the Minister of Land, Infrastructure and Transport shall notify the results of the deliberation for each construction project to the head of the relevant central government agency, as classified below: <Amended by Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 342, Mar. 23, 2013> |
| 1. | In cases of a master plan for the execution of construction projects submitted on or before January 15 each year: By not later than February 20 each year; |
| 2. | In cases of a master plan for the execution of construction projects submitted on or after later than January 16 each year: Not later than ten days from the completion of the deliberation. |
| (3) | The head of a central government agency shall adjust a master plan for the execution of construction projects in accordance with the result of the deliberation notified under paragraph (2), except in extenuating circumstances. <Amended by Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007> |
[This Article Wholly Amended by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006]
| Article 79-2 (Deliberation by Special Deliberation Committee on Construction Technology) |
Notwithstanding Article 79 (1), if the Special Deliberation Committee on Construction Technology referred to in Article 5 (2) of the Construction Technology Promotion Act is established, the Minister of National Defense shall require it to deliberate on the tendering methods of all construction projects specified in the master plan for the execution of construction projects. <Amended by Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007; Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016> [This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006]
| Article 80 Deleted. <by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006> |
| Article 81 (Public Announcement of Construction Projects subject to Tendering Procedures for Alternatives or Turnkey Projects) |
The Minister of Land, Infrastructure and Transport or the Minister of National Defense shall, upon completion of the deliberation by the Central Deliberation Committee on Construction Technology or the Special Deliberation Committee on Construction Technology under Article 79 (1) or 79-2, publicly announce the construction projects subject to the tendering procedures for alternatives or turnkey projects on a newspaper or the E-Procurement System. <Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 342, Mar. 23, 2013; Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013> [This Article Wholly Amended by Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006]
| Article 81-2 (Deliberation, etc. on Tendering Methods in Tendering Procedure for Technical Proposal for Working Plans, etc.) |
Articles 78, 79, 79-2, and 81 shall apply mutatis mutandis to the deliberation, etc. on tendering methods in the tendering procedure for a technical proposal for working plans. [This Article Wholly Amended by Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010]
CHAPTER VII DISCLOSURE, ETC. OF INFORMATION ABOUT CONTRACTS
| Article 82 (Disclosure of Information about Contracts) |
"Matters specified by Ordinance of the Ministry of Strategy and Finance" in the main sentence of Article 92-2 of the Decree means the following: <Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009; Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010; Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016; Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> | 1. | Quarterly plans for awarding contracts on goods, construction projects, services, etc. intended to be executed through competitive tendering procedures or negotiated contracts in the relevant year: |
| (a) | Objective of each contract; |
| (b) | Quantity or scale of each contract; |
| 2. | Matters concerning the specification of the subject matters of contracts subject to tendering procedures: |
| (a) | Contracts for the manufacture or purchase of goods: Conditions required for the subject matters of contracts, such as performance, materials, and specifications; |
| (b) | Service contracts: Details of services, etc. to be performed by the other party to each contract; |
| 3. | Matters concerning the execution of contracts: |
| (a) | Objective of each contract; |
| (b) | Tender dates and contract dates; |
| (c) | Estimated prices or budget prices; |
| (d) | Methods of execution of contracts (whether contracts will be executed through a general competitive tendering procedure, limited competitive tendering procedure, selective tendering procedure or by a negotiated contract, whether any limitation exists on places, and whether Article 72 (3) of the Decree applies); |
| (e) | Name of the other party to each contract (in cases of a corporation, name of the corporation); |
| (f) | Quantity or scale of each contract; |
| (g) | Contract prices (in cases of a long-term ongoing construction project, referring to the total contract price; hereinafter the same shall apply); |
| (h) | In cases of a contract subject to a selective competition tendering procedure or a negotiated contract, the grounds therefor; |
| (i) | In cases of a construction project, the successful tenderer of which is determined pursuant to Article 42 (4) of the Decree, the tender price of each tenderer; |
| 4. | Matters concerning the amendment of contracts: |
| (a) | Objective of each contract; |
| (b) | Terms and conditions of a contract before modifying the contract (quantity or scale of the contract and contract price); |
| (c) | Amended terms and conditions of a contract; |
| (d) | Grounds for amending a contract; |
| 5. | Matters concerning the performance of contracts: |
| (a) | Results of inspections and tallies; |
| (b) | Date of completion of performance of each contract. |
[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005]
| Article 82-2 (Report on Results of Contracts) |
"Matters specified by Ordinance of the Ministry of Strategy and Finance" in the main sentence of Article 93 of the Decree means the matters prescribed in subparagraphs 2 and 3 of Article 82. <Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> [This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005]
| Article 83 (Government Supply of Materials for Construction Projects) |
| (1) | The head of a central government agency who awards a contract for a construction project may directly supply materials necessary for the relevant construction project, in any of the following cases: <Amended by Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005> |
| 1. | Where the direct supply of materials is deemed efficient, taking into comprehensive account the quality and the supply and demand situation of materials, construction site, etc.; |
| 2. | Where the materials directly supplied are certified for its new technology recognized or designated by the competent Minister (including persons delegated by the competent Minister), and the identification of liabilities for defects from other part of the construction project is easy and there will be no impediment in managing progress of works. |
| (2) | Matters necessary for the operation and management of materials to be directly supplied by the head of a central government agency pursuant to paragraph (1) shall be specified by the Minister of Strategy and Finance. <Amended by Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999; Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002; Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009> |
| Article 84 (Government Supply of Software for Software Projects) |
| (1) | The head or a contracting officer of a central government agency who awards a contract for a software project defined in subparagraph 3 of Article 2 of the Software Industry Promotion Act, shall directly purchase and supply the software products publicly notified by the competent Minister. |
| (2) | Notwithstanding paragraph (1), the head or a contracting officer of a central government agency need not directly purchase and supply the software products in any of the following cases: |
| 1. | Where it is impossible to incorporate the software products into an existing information system or a newly installed information system, or where such incorporation causes remarkable increase of expenses; |
| 2. | Where it is likely to remarkably delay the relevant project preventing it from being within the project period, if the software products are directly supplied; |
| 3. | Other cases where it is deemed remarkably inefficient to directly purchase and supply the software products, not to mention the increase of administrative duties caused by separate award of contracts. |
| (3) | Where no software is directly purchased and supplied under paragraph (2), the grounds therefor shall be specified in the plan for awarding the contract and the public notice of the tender. |
[This Article Wholly Amended by Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009]
CHAPTER VIII PETITIONS FOR OBJECTION AND STATE CONTRACT CONCILIATION COMMITTEE
| Article 85 Deleted. <by Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016> |
| Article 86 (Scope of Bearing of Expenses Related to Examination and Conciliation and Settlement Thereof) |
| (1) | The scope of expenses to be borne by a petitioner for examination and conciliation pursuant to Article 115 of the Decree, shall be as follows: |
| 1. | Expenses incurred for appraisals, examinations or tests; |
| 2. | Expenses incurred in appointing a witness and gathering evidence; |
| 3. | Expenses incurred for the inspections and investigations; |
| 4. | Other expenses incurred for examination and conciliation, such as expenses for recording, stenographic records, and interpretation. |
| (2) | The Committee may require a petitioner to make an advance payment of the expenses to be incurred in the examination and conciliation prescribed in paragraph (1), if deemed necessary. |
| (3) | Where the Committee receives an advance payment of the expenses for the examination and conciliation under paragraph (2), it shall forward the petitioner of the statement of accounts as to the amount received in advance, within 30 days from the date a draft conciliation agreement was presented to the parties to the examination and conciliation: Provided, That where any agreement has been made between the petitioner and the head of the competent central government agency, the statement of accounts shall be forwarded in accordance with such agreement. |
[This Article Newly Inserted by Ordinance of the Ministry of Strategy and Finance No. 352, Jun. 19, 2013]
| Article 87 (Operation, etc. of Committee) |
Except as otherwise expressly provided for in this Rule, matters necessary for the operation of the Committee and the conciliation procedures shall be determined by the chairperson following a resolution by the Committee.
[This Article Newly Inserted by Ordinance of the Ministry of Strategy and Finance No. 352, Jun. 19, 2013]
ADDENDA
Article 1 (Enforcement Date)
This Rule shall enter into force on July 6, 1995.
Article 2 (Transitional Measures concerning Execution of Contracts, etc.)
Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force where the public announcement of tenders for which have been made before this Rule enters into force, and contracts to be executed after this Rule enters into force, awarded as a result of tenders conducted before this Rule enters into force, shall be governed by the former provisions.
Article 3 Omitted.
Article 4 (Relationship to Other Statutes)
Where any other statute cites any of the provisions of the Rule on the Handling of Contract Affairs as at the time this Rule enters into force, it shall be deemed to have cited the relevant provisions of this Rule.
ADDENDA <Ordinance of the Prime Minister No. 602, Dec. 31, 1996>
| (1) | (Enforcement Date) This Rule shall enter into force on January 1, 1997. |
| (2) | (Transitional Measures concerning Execution of Contracts, etc.) Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force, where public announcement of tenders for which have been made before this Rule enters into force, and contracts to be executed after this Rule enters into force, awarded as a result of tenders conducted before this Rule enters into force, shall be governed by the former provisions. |
ADDENDA <Ordinance of the Prime Minister No. 682, Feb. 23, 1998>
| (1) | (Enforcement Date) This Rule shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures) Where public announcement of any tender is made before this Rule enters into force, the tender thereof, determination of a successful tenderer, and execution of a contract, shall be governed by the former provisions. |
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 104, Sep. 9, 1999>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 23 (2) and subparagraph 7 of Article 44 enters into force on January 1, 2001. Article 2 (Applicability to Warranty Period for Defects)
The amended provisions of attached Table 1 concerning the warranty period for defects shall apply to contracts to be executed after this Rule enters into force.
Article 3 (Applicability to Period of Restriction on Qualification of Inappropriate Business Entities to Participate in Tendering Procedures)
The amended provision of attached Table 1 concerning the period of restriction on qualification of an inappropriate business entity shall apply where any ground for the restriction occurs after this Rule enters into force.
Article 4 (Special Provisions concerning Adjustment of Contract Price according to Price Fluctuation)
| (1) | In computing the fluctuation width (in cases of adjustment rate of index, referring to the fluctuation rate of each item group; hereinafter the same shall apply) of each item of goods or item pursuant to the amended provisions of Article 74 (4), if any ground for price reduction occurs with the arrival of reference date of adjustment, where tenders were called for on or before November 21, 1977 and a contract was executed on or after the same date, or where tenders were called for and a contract was executed during the period from November 21, 1997 to April 1, 1998, the fluctuation width shall be computed as follows: Provided, That the same shall not where any agreement has been reached between the parties to the contract: |
| 1. | Where the price as at the time of price fluctuation (in cases of fluctuation rate, referring to index; hereafter in this Article, the same shall apply) is lower than the price as at the time of execution of the contract and exceeds the price as at the time of tender, the fluctuation width shall be nil (fluctuation rate of index shall be 1); |
| 2. | Where the price as at the time of price fluctuation is lower than the price as at the time of execution of the contract and the price as at the time of tender, and the price as at the time of tender is lower than the price as at the time of execution of the contract, the fluctuation width shall be computed by comparing the price as at the time of tender and the price as at the time of price fluctuation. |
| (2) | Paragraph (1) may apply even where a contract price has already been adjusted due to price fluctuation before this Rule enters into force, if the performance of the contract is under way as of the enforcement date of this Rule. |
Article 5 (Transitional Measures concerning Execution of Contracts, etc.)
Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force where the public announcement of tenders for which have been made before this Rule enters into force, and contracts to be executed after this Rule enters into force after being awarded in tenders conducted before this Rule enters into force, shall be governed by the former provisions.
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 174, Dec. 30, 2000>
| (1) | (Enforcement Date) This Rule shall enter into force on the date of its promulgation. |
| (2) | (Applicability to Criteria for Restricting Qualification of Inappropriate Business Entities to Participate in Tendering Procedures) The amended provisions of attached Table 2 shall apply where any ground for imposing a restriction on qualification of an inappropriate business entity occurs after this Rule enters into force. |
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 251, Mar. 25, 2002>
| (1) | (Enforcement Date) This Rule shall enter into force on the date of its promulgation. |
| (2) | (Term of Validity) The amended provisions of Article 23 (2) and subparagraph 7 of Article 44 shall remain effective until December 31, 2003. |
| (3) | (Transitional Measures concerning Execution of Contracts, etc.) Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force, after making public announcement of tenders before this Rule enters into force; and contracts to be executed after this Rule enters into force after being awarded in tenders conducted before this Rule enters into force; shall be governed by the former provisions. |
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 274, Aug. 24, 2002>
| (1) | (Enforcement Date) This Rule shall enter into force on September 30, 2002: Provided, That the amended provisions of Articles 14 (3) and 83 shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures concerning Designated Data Processing System) Where it is impractical to use a designated data processing system in extenuating circumstances, the head or a contracting officer of a central government agency may handle the relevant matters in accordance with the former provisions until December 31, 2002, notwithstanding the amended provisions of Articles 15 and 38, subparagraphs 6-2 and 7-2 of Article 44, and Articles 45, 48 and 77. |
| (3) | (Transitional Measures concerning Execution of Contracts, etc.) Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force after making public announcement of tenders before this Rule enters into force, and contracts to be executed after this Rule enters into force after being awarded in tenders conducted before this Rule enters into force, shall be governed by the former provisions. |
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 335, Dec. 12, 2003>
| (1) | (Enforcement Date) This Rule shall enter into force on the date of its promulgation |
| (2) | (Applicability to Warranty Period for Defects) The amended provisions of subparagraph 2 of attached Table 1 concerning warranty periods for defects shall apply to contracts executed after this Rule enters into force. |
| (3) | (Applicability to Criteria for Restricting Qualification of Inappropriate Business Entities to Participate in Tendering Procedures) The amended provisions of subparagraph 1 (g), 3 (f) and 3 (k) of attached Table 2 shall apply where any ground for imposing a restriction on qualification of an inappropriate business entity occurs after this Rule enters into force. |
| (4) | (Transitional Measures concerning Execution of Contracts, etc.) Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force after making public announcement of tenders before this Rule enters into force, and contracts to be executed after this Rule enters into force, after being awarded in tenders conducted before this Rule enters into force, shall be governed by the former provisions. |
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 460, Sep. 8, 2005>
| (1) | (Enforcement Date) This Rule shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 27 and subparagraph (2) (c) shall enter into force on January 1, 2006. |
| (2) | (Applicability to Rate of Penalty for Delay) The amended provisions of subparagraph 2 and 3 of Article 75 shall also apply to contracts executed before this Rule enters into force. |
| (3) | (Applicability to Warranty Period for Defects) The amended provisions of attached Table 1 concerning warranty periods for defects, shall apply to contracts executed after this Rule enters into force. |
| (4) | (Transitional Measures concerning Restriction on Qualification of Inappropriate Business Entities to Participate in Tendering Procedures) Notwithstanding the amended provisions of subparagraph 2 (c) of attached Table 2, restriction on the qualification to participate in tendering procedures, for an offense committed before this Rule enters into force shall be governed by the former provisions. |
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 508, May 25, 2006>
| (1) | (Enforcement Date) This Rule shall enter into force on the date of its promulgation. |
| (2) | (Applicability to Reporting Documents, etc. on Contracts subject to Selective Competitive Tendering Procedures and Negotiated Contracts) The amended provisions of Articles 29 (1) and (2) and 35 shall apply to reports or notifications made after this Rule enters into force. |
| (3) | (Transitional Measures concerning Restriction on Qualification of Inappropriate Business Entities to Participate in Tendering Procedures) Notwithstanding the amended provisions of Article 76 and attached Table 2, restriction on the qualification to participate in tendering procedures, for an offense committed before this Rule enters into force shall be governed by the former provisions. |
| (4) | (Transitional Measures concerning Execution of Contracts, etc.) Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force, where the public announcement of tenders for which have been made before this Rule enters into force, and contracts to be executed after this Rule enters into force, awarded as a result of tenders conducted before this Rule enters into force, shall be governed by the former provisions. |
ADDENDUM <Ordinance of the Ministry of Finance and Economy No. 512, Jul. 5, 2006>
This Rule shall enter into force on the date of its promulgation.
ADDENDA <Ordinance of the Ministry of Finance and Economy No. 536, Dec. 29, 2006>
| (1) | (Enforcement Date) This Rule shall enter into force on the date of its promulgation |
| (2) | (Applicability to Payment of Bond by Guarantee Insurance Policy, etc.) The amended provisions of Article 55 (1) 3 (b) (ii) shall apply where a contract bond is paid after this Rule enters into force, and the amended provisions of item (c) (ii) of the same subparagraph shall apply where a warranty bond is paid after this Rule enters into force. |
| (3) | (Applicability to Adjustment of Contract Price according to Price Fluctuation) The amended provisions of Article 74 (8) shall apply where any adjustment is made after this Rule enters into force. |
| (4) | (Transitional Measures concerning Qualification of Inappropriate Business Entities to Participate in Tendering Procedures) Notwithstanding the amended provisions of subparagraph 7 (c) of attached Table 2, restriction on qualification to participate in tendering procedures, for an offense committed before this Rule enters into force shall be governed by the former provisions. |
| (5) | (Transitional Measures concerning Execution of Contracts, etc.) Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force where the public announcement of tenders for which have been made before this Rule enters into force, and contracts to be executed after this Rule enters into force, awarded as a result of tenders conducted before this Rule enters into force, shall be governed by the former provisions. |
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 578, Oct. 10, 2007>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation
Article 2 (Applicability to Restriction on Qualification of Inappropriate Business Entities to Participate in Tendering Procedures)
The amended provisions of attached Table 2 shall apply where the any ground for imposing a restriction occurs after this Rule enters into force.
Article 3 (Transitional Measures concerning Execution of Contracts, etc.)
Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force after making public announcement of tenders before this Rule enters into force, and contracts to be executed after this Rule enters into force after being awarded in tenders conducted before this Rule enters into force, shall be governed by the former provisions.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 58, Mar. 5, 2009>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation
Article 2 (Applicability to Price Computation Methods as at Time of Price Fluctuation, When in Cases of Natural Disaster or Calamity, Jump in Prices, etc.)
The amended provisions of the proviso to Article 74 (7), shall apply to any adjustment of contract price made after this Rule enters into force. Article 3 (Transitional Measures concerning Execution of Contracts, etc.)
Tenders, determination of successful tenderers, and execution of contracts to be conducted after this Rule enters into force after making public announcement of tenders before this Rule enters into force, and contracts to be executed after this Rule enters into force after being awarded in tenders conducted before this Rule enters into force, shall be governed by the former provisions.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 95, Aug. 31, 2009>
Article 1 (Enforcement Date)
This Rule shall enter into force on September 1, 2009.
Article 2 (Applicability)
This Rule shall apply where any ground for imposing a restriction occurs after this Rule enters into force.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 161, Jul. 21, 2010>
Article 1 (Enforcement Date)
This Rule shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 81-2 shall enter into force on the date of its promulgation, and the amended provisions of Articles 64 and 66, and subparagraph 8 (b) of attached Table 2 shall enter into force on January 1, 2011. Article 2 (Applicability to Restriction on Qualification of Inappropriate Business Entities to Participate in Tendering Procedures)
The amended provisions of subparagraph 7 (c) of attached Table 2 shall apply where any ground for imposing a restriction on qualification of an inappropriate business entity occurs after this Rule enters into force.
Article 3 (Transitional Measures concerning Invalidation of Tenders of Business Entities Which have Failed to Participate in On-Site Presentation Session)
Notwithstanding the amended provisions of subparagraph 6-2 of Article 44, the validity or invalidity of a tender of a person who has failed to participate in an on-site presentation session, among participants in the tendering procedure of a construction project, the estimated price for which is at least ten billion won, and for which an on-site presentation session is held pursuant to Article 14-2 (1) and the main sentence of paragraph (2) of the same Article, shall be governed by the former provisions. Article 4 (Transitional Measures concerning Nonfulfillment of Warranty by Joint Guarantors)
Where a person who was a joint guarantor of the contract for a contraction project executed before this Rule enters into force fails to comply with a demand for the fulfillment of his/her warranty (including fulfillment of his/her warranty for defects) even after the receipt thereof, the restriction on his/her qualification to participate in tendering procedures shall be governed by the former provisions, notwithstanding the amended provisions of subparagraph 8 (b) of attached Table 2.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 284, May 18, 2012>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 25 (3) and (4) and 33 (2) shall enter into force on July 1, 2012. Article 2 (Applicability to Limited Competitive Tendering on Basis of Location of Main Business Place)
The amended provisions of Article 25 (3) and (4) shall apply where any public announcement of a tender is made on or after July 1, 2012. Article 3 (Applicability to Restriction on Submission of Quotations for Negotiated Contracts on Basis of Location of Main Business Place)
The amended provisions of Article 33 (2) shall apply where any negotiated contract is executed on or after July 1, 2012
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 342, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 352, Jun. 19, 2013>
Article 1 (Enforcement Date)
This Rule shall enter into force on June 19, 2013.
Article 2 (Applicability to Factors for Evaluating Level of Fidelity to Performance of Contracts)
The amended provisions of Article 23 shall apply to contracts for which public announcement of tender is made after this Rule enters into force. Article 3 (Applicability to Rate of Defects Warranty Bond)
The amended provisions of Article 72 (2) 1 and attached Table 1 shall apply to contracts for which public announcement of tender is made after this Rule enters into force. Article 4 (Applicability to Restriction on Qualification of Inappropriate Business Entities to Participate in Tendering Procedures)
The amended provisions of Article 77-2, subparagraph 3 (c) of attached Table 2, and attached Tables 3 and 4 shall apply where any ground for imposing a restriction on qualification of an inappropriate business entity occurs after this Rule enters into force.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 355, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Rule shall enter into force on July 1, 2013.
Articles 2 through 11 Omitted.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 360, Sep. 17, 2013>
Article 1 (Enforcement Date)
This Rule shall enter into force on September 23, 2013.
Article 2 Omitted.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 443, Nov. 4, 2014>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation: Provided, That the amended provisions of attached Table 4 shall enter into force on January 1, 2015, and the amended provisions of Article 5 (2) shall enter into force on March 1, 2015. Article 2 (Applicability to Warranty Period for Defects and Rate of Penalty for Delay)
The amended provisions of Articles 70 (1) and 75 (1) 2 shall apply where any contract is executed after this Rule enters into force. Article 3 (Applicability to Persons subject to Imposition of Penalty Surcharges and Criteria for Imposition Thereof)
The amended provisions of attached Table 4 shall also apply to offenses committed before January 1, 2015.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 444, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 487, Jun. 30, 2015>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Article 2 (Applicability to Rate of Overhead Expenses in Determining Budget Price by Cost Accounting)
The amended provisions of Article 8 (1) shall apply where any public announcement is made or any negotiated contract is executed after this Rule enters into force. Article 3 (Applicability to Criteria for Restricting Limited Competitive Tendering)
The amended provisions of Article 25 (3) shall apply where any public announcement of tender is made after this Rule enters into force.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 533, Feb. 1, 2016>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Article 2 (Applicability to Invalidation of Tenders)
The amended provisions of Article 454 shall apply to any contract for which public announcement is made after this Rule enters into force. Article 3 (Transitional Measures concerning Disclosure of Information about Contracts)
Notwithstanding the amended provisions of Article 82, any construction project for which public announcement of tender is made by the head or a contracting officer of a central government agency on or before January 1, 2016, shall be governed by the former provisions. Article 4 (Transitional Measures concerning Restriction on Qualification to Participate in Tendering Procedures)
Notwithstanding the amended provisions of attached Tables 2 and 4, administrative measures taken against any violation committed before this Rule enters into force, shall be governed by the former provisions.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 573, Sep. 23, 2016>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 15 (2) 1 (e), 2 (f) and 3 (e) shall enter into force on January 1, 2017. Article 2 (Applicability to Registration of Qualification to Participate in Tendering Procedures)
The amended provisions of Article 15 (2) 1 (e), 2 (f), and 3 (e), and attached Forms 3, 5, 6 and 13 shall apply where the qualification to participate in a tendering procedure is registered on or after the enforcement date prescribed in the proviso to Article 1 of the Addenda. Article 3 (Applicability to Invalidation of Tenders)
The amended provisions of Article 44 (2) shall apply where any public announcement of a tender is made after this Rule enters into force.
ADDENDA <Ordinance of the Ministry of Strategy and Finance No. 644, Dec. 28, 2017>
Article 1 (Enforcement Date)
This Rule shall enter into force on the date of its promulgation.
Article 2 (Applicability to Rate of Penalty for Delay)
The amended provisions of Article 75 shall begin to apply to the first public announcement of a tender (excluding any second public announcement of a tender or any public announcement of a re-tender) made or to the first negotiated contract executed, after this Rule enters into force.