CHAPTER I GENERAL PROVISIONS
[This Article Wholly Amended on Jul. 26, 2010]
The terms used in this Decree are defined as follows: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
| 1. | The term "estimated price" means a price calculated in accordance with Article 7 before determining a budget price so as to use the price as a criterion, etc. for determining whether a contract shall be put out to an international tender under Article 5 of the Act on Contracts to Which a Local Government Is a Party (hereinafter referred to as the "Act"), in executing a contract for the procurement of goods, construction works, services, etc.; |
| 2. | The term "budget price" means a price prepared under Article 9, which is the value prepared in advance to use as a criterion for determining a successful bidder or a contract price before concluding a tender or a contract; |
| 3. | The term "publicly notified amount" means an amount publicly notified by the Minister of the Interior and Safety as subject to international tender pursuant to the main clause of Article 5 (1) of the Act; |
| 4. | The term "construction bond" means a bond by which the guaranteeing institution ensures that it will perform contractual obligations on behalf of the other party to a contract for a construction project if the other party to the contract fails to perform contractual obligations, or that it will pay a specified amount if it fails to perform such obligations. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 3 (Relationship to Other Statutes or Regulations) |
Except as otherwise provided in any other statutes or regulations, contracts to which a local government is a party shall be governed by this Decree.
[This Article Wholly Amended on Jul. 26, 2010]
| Article 4 (Contract by International Tender) |
| (1) | Cases where a contract by international tender may not be entered into under Article 5 (1) 4 of the Act shall be as follows: <Amended on Feb. 5, 2014; Sep. 20, 2022> |
| 1. | Where it is required to maintain public order and safety; to protect the life and health of humans, animals, or plants; or to protect intellectual property rights; |
| 2. | Where goods, services, etc. produced or provided by philanthropic institutions, person with disabilities, or prisoners are procured; |
| 3. | Where goods or services are procured for resale or sale or for use in the supply of goods and services for resale or sale; |
| 4. | Where procurement is required to promote meal service programs; |
| 5. | Where weapons or ammunition are procured for performing autonomous police affairs. |
| (2) | Cases where a contract by international tender may be entered into under Article 5 (3) of the Act shall be as follows: |
| 1. | Where it is deemed necessary for preventing shoddy construction works; |
| 2. | Where the purpose of procurement is unattainable through domestic tender due to difficulties in domestic production; |
| 3. | Where procurement by international tender is deemed efficient in consideration of the purpose or nature of the relevant contract. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 5 (Application Mutatis Mutandis) |
Articles 1, 2, 4 through 25, and 39 through 44 of the Regulations on Special Cases concerning the Enforcement Decree of the Act on Contracts to Which the State Is a Party in Specific Procurement and Articles 1 through 11, 13, 14, and 17 of the Regulations on Special Cases concerning the Enforcement Decree of the Act on Contracts to Which the State Is a Party in the Procurement of Specific Goods shall apply mutatis mutandis to the principles of international tender, tender announcement, methods of tender, the determination of a successful bidder, etc. under Article 5 (2) and (3) of the Act. In such cases, "the head of a central agency" shall be construed as "the head of a local government", "the Minister of Economy and Finance" as "the Minister of the Interior and Safety", "Ordinance of the Ministry of Economy and Finance" as "Ordinance of the Ministry of the Interior and Safety", "public official in charge of contracting" as "contracting officer", and "the State" and "the Government" as "local government", respectively. <Amended on Jul. 28, 2011; Dec. 2, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> [This Article Wholly Amended on Jul. 26, 2010]
| Article 5-2 (Contents of Written Integrity Pledge and Procedures for Conclusion) |
| (1) | "Matters prescribed by Presidential Decree" in Article 6-2 (2) 3 of the Act means matters regarding the prohibition of requesting or receiving specific information in relation to a tender or contract through arrangement or solicitation that interferes with the impartial performance of duties. |
| (2) | The head of a local government or a contracting officer shall require bidders and the other party to a contract to submit a written integrity pledge pursuant to Article 6-2 of the Act, when they submit tender documents or enter into a negotiated contract. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 6 (Procedures for Delegation and Entrustment of Contracting Duties) |
| (1) | Pursuant to Article 7 (1) of the Act, the head of a local government may fully or partially delegate his or her contracting duties to accounting officials referred to in Articles 46 and 47 of the Local Accounting Act. In such cases, accounting officials delegated with the contracting duties may designate a public official affiliated with the local government to perform part of the contracting duties in consideration of the characteristics of the contracting duties. <Amended on Nov. 29, 2016> |
| (2) | "Specialized institutions prescribed by Presidential Decree" in Article 7 (1) of the Act (hereafter in this Article referred to as "specialized institution") means any of the following institutions with expertise in contracts, accounting, or other related fields: Provided, That the contracting duties for the review of the adequacy of cost accounting (hereinafter referred to as "cost review") shall be entrusted to an institution provided in the items of subparagraph 4, which has not prepared a cost statement for the subject matter of a contract subject to cost review: <Amended on Mar. 23, 2013; Nov. 20, 2013; Nov. 19, 2014; Sep. 13, 2016; Jul. 26, 2017> |
| 4. | Any of the following institutions or corporations that meet the requirements determined by the Minister of the Interior and Safety: |
| (a) | A research institute in or to which the State, a local government, or a State- or local government-invested institution invests or contributes at least 50/100 of its assets; |
| (d) | A corporation incorporated with permission, etc. from the competent administrative agency under the Civil Act or other statutes or regulations; |
| (e) | An industry-academic cooperation foundation under Article 25 of the Promotion of Industrial Education and Industry-Academic Cooperation Act; |
| (3) | Where the head of a local government intends to entrust a specialized institution with the performance of contracting duties under his or her jurisdiction pursuant to Article 7 (1) of the Act, he or she shall designate a specialized institution deemed most appropriate for the performance of the relevant duties from among the specialized institutions provided in the subparagraphs of paragraph (2) and enter into a contract stipulating entrustment fees and other matters necessary for entrustment. |
| (4) | When the head of a local government enters into a contract under paragraph (3), he or she shall stipulate in the contract that if the relevant specialized institution violates this Decree or other statutes or regulations while performing the entrusted contracting duties or handles the entrusted contracting duties improperly, he or she may cancel or terminate the contract and hold the specialized institution legally liable to pay damages, etc. |
| (5) | Where the head of a local government entrusts a specialized institution with contracting duties, he or she may give necessary instructions or order measures with respect to such duties. |
| (6) | Entrustment fees under paragraph (3) shall be determined through consultation between a local government and a specialized institution within the scope of direct expenses necessary for the performance of entrusted duties, expenses incurred in the management of such duties, general management expenses, etc. |
| (7) | Article 51 may apply mutatis mutandis to the performance guarantee following entrustment of duties. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 6-2 (Designation and Public Notification of Information Processing System) |
| (1) | The Minister of the Interior and Safety shall designate and publicly notify an information processing system that enables local governments to process bidding and contracting duties by electronic means. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | A person who manages and operates the information processing system designated and publicly notified under paragraph (1) (hereinafter referred to as "designated information processing system") (hereinafter referred to as "manager") shall comply with the matters to be observed, as determined by the Minister of the Interior and Safety, with respect to the management, operation, etc. of the designated information processing system. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Sep. 15, 2011]
CHAPTER II ESTIMATED PRICE AND BUDGET PRICE
| Article 7 (Calculation of Estimated Price) |
The head of a local government or a contracting officer under Article 5 (3) of the Act (hereinafter referred to as "contracting officer") shall calculate an estimated price, excluding the price of the part of the materials to be supplied by the government, based on the amount appropriated in the budget or the amount calculated using the specifications, design documents, etc. of the relevant subject matter: Provided, That in any of the following cases, the relevant amount classified as follows shall be the estimated price: | 1. | In cases of a unit price contract: An amount calculated by multiplying the estimated unit price of manufacture, purchase, repair, maintenance, recovery, processing, sale, supply, use, etc. (hereinafter referred to as "manufacture, purchase, recovery, etc.") by the estimated quantity; |
| 2. | In cases of a contract in which individual requests for procurement are made in multiples or in installments, any of the following amounts: |
| (a) | The amount determined by adjusting the total amount of similar contracts made during one fiscal year, or 12 months, immediately before the fiscal year in which the relevant contract is to be entered into, in consideration of expected changes in the quantity and amount during the immediately following 12 months; |
| (b) | The total amount of contracts to be entered into during the relevant fiscal year or the immediately following 12 months; |
| 3. | In cases of a contract for the lease, rent, or installment purchase of goods or services or a contract whose total contract price is not finalized: Any of the following amounts: |
| (a) | If the contract has a fixed contract term, the price shall be estimated for the entire contract term; |
| (b) | If the contract term is not fixed or indefinite, the estimated price shall be determined by multiplying the amount estimated to be paid for one month by 48; |
| 4. | If the subject matter to be procured includes optional items, the price shall be determined as the maximum amount procurable, including such optional items. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 8 (Preparation and Keeping of Budget Price) |
| (1) | The head of a local government or a contracting officer shall prepare a budget price based on the relevant specifications, design documents, etc. for matters to be put out for a bid, negotiated contract, etc.; keep or enter the budget price in accordance with the following classifications; and ensure that the budget price is not divulged: Provided, That this shall not apply to the sale of public property or other cases otherwise provided in relevant statutes or regulations: <Amended on Sep. 15, 2011> |
| 1. | In cases of a bid or negotiated contract in writing: The budget price shall be sealed in advance and kept at the bid opening place, price negotiation place, etc.; |
| 2. | In cases of a bid or negotiated contract through a designated information processing system: The budget price prepared shall be entered in the designated information processing system. |
| (2) | Any of the following contracts need not have a budget price: Provided, That in cases falling under subparagraph 5 or 6, a budget price shall not be prepared: <Amended on Jan. 15, 2016; Jun. 25, 2019; Jul. 14, 2020> |
| 1. | A negotiated contract under Article 25 (1) 3 and 5, and paragraph (3) of that Article (excluding where it is required to submit a written estimate through a designated information processing system under the main clause of Article 30 (2)); |
| 2. | A contract by negotiation under Article 43 or 44; |
| 3. | A contract through competitive dialogue under Article 44-2; |
| 4. | A rough estimate contract under Article 81 or 82; |
| 6. | A contract awarded through technical proposal tendering for schematic design under subparagraph 3 of Article 127. |
| (3) | If the head of a local government or a contracting officer intends to prepare a budget price at the time of calling for tenders for a rough estimate contract under Article 82, he or she shall prepare a budget price calculated based on standard drawings, etc. (hereinafter referred to as "approximate budget price"), and shall keep or enter it according to the classifications provided in the subparagraphs of paragraph (1), and shall ensure that the approximate budget price is not divulged. <Amended on Sep. 15, 2011> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 9 (Methods for Determining Budget Price) |
| (1) | A budget price shall be determined regarding the total prices of the subject matters of a contract: Provided, That a budget price may be determined regarding a unit price if the contract is for a continued manufacture, purchase, recovery, etc. for a specific term. |
| (2) | In cases of a construction contract, for which its implementation takes several years and the details of the entire project are finalized by a design document, etc. (hereinafter referred to as "long-term continuing construction project"), and in cases of a contract for the manufacture, purchase, recovery, etc. of goods, for which its implementation takes several years and the details of the subject matters of the relevant contract are finalized by a design document, specification, etc. (hereinafter referred to as “long-term manufacture of goods, etc.”), a budget price shall be determined within the scope of the total construction costs or the total manufacturing costs, etc. on the budget. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 10 (Criteria for Determining Budget Price) |
| (1) | The head of a local government or a contracting officer shall determine a budget price based on the following prices: <Amended on Mar. 23, 2013; Nov. 19, 2014; Aug. 19, 2015; Jul. 26, 2017> |
| 1. | An actual transaction price prescribed by Ordinance of the Ministry of the Interior and Safety (referring to an actual transaction price within the scope of a determined price, if the price is determined under statutes or regulations), if proper transactions are in place; |
| 2. | A cost-based price, if no proper actual transaction price exists due to the nature of the contract, such as a contract involving special goods using newly developed products, products with special specifications, etc., or special construction works or services; in such cases, a cost-based price shall be calculated with material cost, labor cost, expenses, overhead expenses, and profits, which constitute the subject matter of the contract such as goods, construction works, and services; |
| 3. | A price recognized by the head of the relevant central government agency, as the standard market unit price calculated based on the market transaction price, etc. by type of construction works that have already been performed in cases of construction works; |
| 4. | An appraisal price or an actual transaction price or quoted price of similar goods, construction works, services, etc., if it is impracticable to refer to the prices provided in subparagraphs 1 through 3. |
| (2) | Deleted. <Feb. 5, 2014> |
| (3) | When the head of a local government or a contracting officer determines a budget price, he or she shall examine the appropriateness and legitimacy thereof, as determined by the Minister of the Interior and Safety. <Newly Inserted on Sep. 15, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | Except as provided in paragraphs (1) and (3), matters necessary for determining a budget price shall be determined by the Minister of the Interior and Safety. <Amended on Sep. 15, 2011; Mar. 23, 2013; Feb. 5, 2014; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
CHAPTER III METHOD OF CONTRACTING
| Article 11 (Methods of Tender) |
If the head of a local government or a contracting officer deems it necessary for the sale of movable property, he or she may put the property to auction in a manner equivalent to the methods of tender prescribed in this Decree.
[This Article Wholly Amended on Jul. 26, 2010]
| Article 12 (Effectuation of Tender) |
Tendering shall become valid by the participation therein of at least two persons qualified to participate in the tender. <Amended on Nov. 29, 2016>
[This Article Wholly Amended on Aug. 5, 2009]
| Article 13 (Qualification for Participation in Tender) |
| (1) | The head of a local government or a contracting officer shall allow only the persons who meet the following requirements to participate in a tender: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| 1. | If it is required to obtain or file permission, authorization, license, registration, report, etc. or meet the qualification requirements in accordance with other statutes or regulations, persons shall have obtained the relevant permission, authorization, license, etc.; have filed the relevant registration, report, etc.; or meet the relevant qualification requirements; |
| 2. | If a measurement of security or other examinations are required, persons shall be determined to be appropriate by the relevant agency; |
| 3. | Persons shall meet other requirements prescribed by Ordinance of the Ministry of the Interior and Safety. |
| (2) | Paragraph (1) 1 shall not apply where a small and medium enterprise cooperative under the Small and Medium Enterprise Cooperatives Act participates in a bid for manufacturing and purchasing goods insofar as a member thereof who meets the requirements under paragraph (1) 1 is required to manufacture or purchase the relevant goods. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 14 (Pre-Qualification) |
| (1) | The head of a local government or a contracting officer may pre-qualify bidders to participate in the tender: Provided, That in cases of a contract for a construction project for which a successful bidder is determined pursuant to Article 42-3, bidders shall be pre-qualified. <Amended on Jan. 15, 2016> |
| (2) | If the head of a local government or a contracting officer examines qualification for participation in a tender pursuant to paragraph (1), he or she may examine the qualifications based on the criteria determined by the Minister of the Interior and Safety by taking into comprehensive consideration of elements necessary to evaluate the ability to perform a contract, such as difficulty in performing a contract, performance results, technical ability, financial position, the conscientiousness in performing a contract, and social credibility, or may determine the criteria to examine the qualifications for participation in a tender within the scope of such criteria: Provided, That where the head of a local government or a contracting officer intends to otherwise set criteria deviating from the scope of criteria determined by the Minister of the Interior and Safety, he or she may do so after a prior consultation with the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (3) | The head of a local government or a contracting officer shall keep the following documents to make them available for inspection by a person who intends to participate in a tender before submitting a tender, and shall issue such documents at the request of a person who intends to participate in a tender; in such cases, he or she may post such information on the designated information processing system in lieu of such inspection or issuance: <Amended on Sep. 15, 2011> |
| 1. | Pre-qualification criteria; |
| 2. | Guidelines for preparing evidentiary documents necessary for pre-qualification and methods for submitting such documents; |
| 3. | Other matters necessary for pre-qualification. |
| (4) | Notwithstanding paragraph (2), if procedures, etc. for evaluating the ability to perform a project with regard to services, etc. are provided in relevant statutes or regulations, the head of a local government or a contracting officer shall select qualified persons to participate in a tender according to such procedures, etc. |
| (5) | Detailed procedures for pre-qualification under paragraph (1) shall be determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 15 (Tendering for Construction Projects) |
| (1) | If the head of a local government or a contracting officer intends to put a construction project out to tender, he or she shall prepare design documents, a bill of quantities for each type of work with respect to the subject matter of the contract (hereinafter referred to as "bill of quantities"), and other documents regarding bidding prescribed by Ordinance of the Ministry of the Interior and Safety (hereinafter referred to as “bidding documents”), and shall make them available for inspection by, and issue them to, persons who intend to participate in the tender, from the tender announcement date to the deadline for bidder registration. In such cases, he or she may post such information on the designated information processing system in lieu of such inspection or issuance. <Amended on Mar. 23, 2013; Nov. 19, 2014; Sep. 13, 2016; Jul. 26, 2017> |
| (2) | Deleted. <Sep. 13, 2016> |
| (3) | If the head of a local government or a contracting officer intends to put a construction project out to tender, he or she shall give an on-site presentation in advance prior to the deadline for submitting tender documents: Provided, That this shall not apply where it is deemed unnecessary to provide an on-site presentation in consideration of the nature of the construction project. |
| (4) | An on-site presentation under paragraph (3) shall be conducted prior to the following periods classified depending on the size of the construction project, counting from the day immediately before the deadline for submitting tender documents: Provided, That such period may be shortened in cases falling under Article 35 (4): |
| 1. | Seven days, where the estimated price is less than one billion won; |
| 2. | 15 days, where the estimated price is at least one billion won, but less than five billion won; |
| 3. | 33 days, where the estimated price is at least five billion won. |
| (5) | If the head of a local government or a contracting officer gives an on-site presentation under paragraphs (3) and (4) at the time of a tender for a construction project, the estimated price of which is at least 30 billion won, only the persons who participate in the on-site presentation shall be allowed to participate in the tender. |
| (6) | The head of a local government or a contracting officer shall require bidders to indicate the total bid price in their tender documents at the time of bidding for a construction project and shall require them to attach a detailed bid price analysis stating unit prices (hereinafter referred to as “priced bill of quantities") to the priced bill of quantities: Provided, That in cases of a construction project, the estimated price of which is less than 10 billion won, or a construction project subject to a re-tender under Article 19 (1), the successful bidder shall be required to submit a priced bill of quantities when he or she submits a report on commencement of the construction project. <Amended on Sep. 13, 2016> |
| (7) | The priced bill of quantities referred to in paragraph (6) shall be prepared according to the following classifications: <Amended on Sep. 15, 2011; Jan. 15, 2016> |
| 1. | A construction project for which a bill of quantities is inspected or issued: |
| (a) | A construction project, the estimated price of which is less than 30 billion won: Only the unit prices shall be stated on the bill of quantities issued; |
| (b) | A construction project, the estimated price of which is not less than 30 billion won: The unit prices shall be stated on the bill of quantities issued, but the part where the authority awarding the contract allows revision may be prepared after revision; |
| 2. | A construction project for which a bill of quantities is not inspected or issued: A bidding participant shall prepare a bill of quantities in person and enter unit prices thereon. |
| (8) | In cases of a long-term continuing construction project (including construction projects incurring continuing expenditure under Article 42 of the Local Finance Act), a tender shall be submitted with respect to the entire project. |
| (9) | If the head of a local government or a contracting officer invites tenders for a unit price contract under Article 79 (1) 2, he or she shall invite tenders on a lump sum basis, and shall require the submission of a detailed priced bill of quantities regarding unit prices at the time of entering into the contract. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 16 (Tendering for Manufacture or Purchase of Goods or for Services) |
| (1) | If the head of a local government or a contracting officer intends to put the manufacture and purchase of goods or for services, etc. out to tender, he or she shall prepare and keep bidding documents, and may post such documents on the designated information processing system when making a tender announcement. |
| (2) | Upon receiving a request from a person who intends to participate in the relevant tender, the head of a local government or a contracting officer shall make bidding documents available for inspection: Provided, That in cases of a tender for the manufacture or purchase of goods or for services, etc., the estimated price of which is at least the amount publicly notified, he or she shall issue bidding documents at the request of a person who intends to participate in the relevant tender. |
| (3) | If the head of a local government or a contracting officer deems that it is efficient to award integrated orders for goods and services due to the nature of contracts, he or she may put such goods and services out to tender at once. |
| (4) | If the head of a local government or a contracting officer put goods and services out to tender at once under paragraph (3), he or she shall select a method that he or she deems fit for the characteristics of the subject matters of contracts from among the methods for determining a successful bidder under Articles 42 (1) and 43, and specify such method in the tender announcement. |
| (5) | A tender for the manufacture or purchase of goods or for services, etc. shall be made by submitting a tender document in the form prescribed by Ordinance of the Ministry of the Interior and Safety; and the bid price shall be stated as a lump sum in cases of a bid on a lump sum basis and as a unit price in cases of a bid on a unit price basis. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (6) | In cases of a long-term continuous contract (including the manufacture, etc. incurring continuing expenditure under Article 42 of the Local Finance Act), tenders shall be invited for the total manufacturing quantity, etc. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 17 (Tendering for Large Quantity of Goods) |
| (1) | In an open tender for the sale of a large quantity of goods, a user may be allowed to submit a tender for the quantity that he or she desires to purchase and the unit price therefor to the extent of the quantity of goods to be sold. |
| (2) | In an open tender for the manufacture or purchase of a large quantity of goods in demand, a supplier may be allowed to submit a tender for the quantity that he or she desires to supply and the unit price therefor to the extent of the quantity of goods in demand. |
| (3) | The scope of the subject matters of tender for a desired quantity under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 18 (Two-Stage Bidding) |
| (1) | If it is impracticable to prepare appropriate specifications, etc. in advance for a contract for the manufacture or purchase of goods or for services (excluding contracts for simple labor services including cleaning and security, as prescribed by Ordinance of the Ministry of the Interior and Safety) or if it is deemed necessary in light of the characteristics of a contract, the head of a local government or a contracting officer may invite a specification bid or a technical bid first and then a price bid. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | In cases falling under paragraph (1), only persons determined to be qualified according to the results of opening specification bids or technical bids shall be qualified to submit price bids. |
| (3) | Notwithstanding paragraphs (1) and (2), if deemed necessary based on the characteristics, etc. of a contract for the manufacture or purchase of goods or for services (excluding contracts for simple labor services including cleaning and security, as prescribed by Ordinance of the Ministry of the Interior and Safety), the head of a local government or a contracting officer for the manufacture or purchase of goods or for services (excluding contracts for simple labor services including cleaning and security, as prescribed by Ordinance of the Ministry of the Interior and Safety) may execute specifications bids or technical bids simultaneously with price bids. In such cases, only the price bids submitted by persons, who are determined to be qualified according to the results of opening specification bids or technical bids, shall be opened. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | A specification and technology evaluation committee shall be established in the relevant local government to deliberate on matters regarding specification bids or technical bids under paragraph (1) or (3), as determined by the Minister of the Interior and Safety. <Newly Inserted on Sep. 20, 2022> |
| (5) | If the head of a local government intends to call for tenders under paragraphs (1) through (3), he or she shall determine evaluation standards, procedures, etc. before calling for tenders and make them available for inspection by persons who intend to participate in the tender. <Amended on Sep. 20, 2022> |
| (6) | If it is impossible to determine a successful bidder according to the results of opening price tenders under paragraph (3) and if the number of persons qualified in the aspect of specifications or technology is at least two persons, such persons qualified in the aspect of specifications or technology may be required to submit a price tender once again. <Amended on Sep. 20, 2022> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 19 (Re-Tendering and Re-Announcement of Tender) |
| (1) | If tendering fails to become valid or if there is no successful bidder, re-tenders may be called for at the same place. In such cases, re-tenders shall not be deemed new tenders and shall not be subject to any restriction on bidders or on the number of bid submissions. |
| (2) | If a re-tender may be called for under paragraph (1) or if the successful bidder fails to enter into a contract, a tender may be announced again. |
| (3) | In cases of a re-tender or re-announcement of tender under paragraph (1) or (2), the price and other terms and conditions of the initial tender, except for the deadline, shall not be changed. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 20 (Contract Subject to Restrictive Tendering and Matters Subject to Restrictions) |
| (1) | Cases where the qualification of bidding participants may be restricted pursuant to Article 9 (2) of the Act and matters subject to restrictions shall be as follows; in such cases, the criteria for restriction for each matter subject to restrictions under subparagraphs 1 through 3, 5, and 6 shall be prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Oct. 28, 2011; Mar. 23, 2013; Nov. 20, 2013; Nov. 19, 2014; Jan. 15, 2016; Sep. 13, 2016; Nov. 29, 2016; Jul. 26, 2017; Aug. 9, 2017; Jun. 25, 2019; Feb. 2, 2021; Sep. 14, 2021; Jun. 28, 2022; Jan. 3, 2023> |
| 1. | In cases of a contract for a construction project which consists of general construction works under the Framework Act on the Construction Industry and the estimated price of which is not less than three billion won (300 million won in cases of specialized construction works under the Framework Act on the Construction Industry and other construction works under construction-related statutes or regulations), execution capacity or past records of performance of construction projects of the same type as the relevant construction project; |
| 2. | In cases of a contract for a construction project which requires special technology or construction methods, the status of technology in possession necessary for the execution of the relevant construction project, or past records of performance of construction projects of the same type as the relevant construction project; |
| 3. | In cases of a contract for manufacturing goods which requires special equipment or technology, the status of equipment and technology in possession necessary for manufacturing the relevant goods, or past records of performance of the manufacture of goods of the same type as the goods subject to the contract; in such cases, if it is intended to restrict the qualification of bidding participants based on the records of performance of the manufacture of goods of the same type as the relevant goods, the estimated price of a contract for manufacturing the relevant goods shall be at least the amount determined and publicly notified by the Minister of Economy and Finance under Article 4 (1) of the Act on Contracts to Which the State Is a Party; |
| 4. | Deleted; <Nov. 29, 2016> |
| 5. | In cases of a service contract which requires special technology, the status of technology in possession necessary for providing such services, or past records of performance of the services of the same type as the services subject to the contract; in such cases, if it is intended to restrict the qualification of bidding participants based on the past records of performance of services of the same type as the relevant services, the estimated price of the relevant services contract shall be at least the amount determined and publicly notified by the Minister of Economy and Finance under Article 4 (1) of the Act on Contracts to Which the State Is a Party; |
| 6. | In cases of a contract whose estimated value is less than the amount prescribed by Ordinance of the Ministry of the Interior and Safety, the location of the head office in the corporate register (in cases of a sole proprietor, referring to the location of the place of business specified in the business registration certificate or documents related to permission, authorization, license, registration, report, etc. under the relevant statutes or regulations); |
| 7. | In cases of a contract for a construction project which is subject to restrictions under Article 21, the criteria for such restrictions; |
| 9. | Deleted; <Jun. 25, 2019> |
| 10. | In cases of purchasing goods that have obtained the following certifications, etc. for the reason that special performance or quality is required, whether the goods have obtained the relevant certifications, etc.: |
| (b) | Deleted; <Jan. 26, 2017> |
| (e) | Goods that use a new disaster safety technology designated under Article 14 of the Disaster Safety Industry Promotion Act; |
| (2) | If the head of a local government or a contracting officer intends to restrict qualifications for participation in tendering under paragraph (1), he or she shall specify matters subject to and criteria for such restrictions in the tender announcement. |
| (3) | Where the head of a local government or a contracting officer places restrictions on qualification for participation in tendering for a construction project under paragraph (1) 6, he or she may give notice of the matters specified in the subparagraphs of Article 36 to the relevant person qualified to participate in tendering in lieu of the tender announcement under paragraph (2), as prescribed by Ordinance of the Ministry of the Interior and Safety. In such cases, the tender announcement date shall be deemed the date of notice, and Article 35 shall apply mutatis mutandis to the timing of notice. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 21 (Tender Subject to Restrictions by Nature or Size of Construction Project) |
| (1) | The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") may categorize construction projects based on their nature and size, determine the criteria for restrictions on tendering corresponding thereto, make a public announcement thereof on the designated information processing system, and allow persons qualified to participate in tendering to file for registration. <Amended on Nov. 20, 2013> |
| (2) | Upon receipt of an application for registration pursuant to paragraph (1), the Mayor/Do Governor shall examine such application, select and register persons qualified to participate in tendering by type and grade, and notify matters specified in the subparagraphs of Article 36 to persons qualified to participate in tendering each time tenders are called for a construction project so that they may apply for participation in tendering. |
| (3) | If a Mayor/Do Governor intends to determine the criteria for restrictions on tendering under paragraph (1), he or she shall have a consultation thereon with the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | The head of a local government or a contracting officer may call for tenders from persons qualified to participate in tendering, who are registered by the Mayor/Do Governor having jurisdiction over the construction site pursuant to paragraph (2). |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 22 (Contract by Competitive Procedure with Negotiation) |
In any of the following cases, the head of a local government or a contracting officer may award a contract through a competitive procedure with negotiation under the proviso of Article 9 (1) of the Act: <Amended on Oct. 28, 2011; Nov. 20, 2013; Jan. 15, 2016; Nov. 29, 2016; Jan. 26, 2017; Jul. 26, 2017; Jun. 25, 2019; Jul. 14, 2020; Jan. 3, 2023> | 1. | Where it is impracticable for any person, other than those who have special equipment, technology, materials, goods, or past records of performance in light of the nature or purpose of the contract, to attain the purpose of the contract and where the number of persons eligible for tendering does not exceed 10; |
| 3. | Where property, the estimated price of which is not more than 50 million won, is to be purchased; |
| 4. | Where property or goods, the annualized amount of the budgeted rent (including the annualized amount of security deposit, if any) is not more than 50 million won, is to be leased; |
| 5. | Where the estimated price of a contract, other than those referred to in subparagraphs 1 through 4, does not exceed 50 million won; |
| 9. | Where it is intended to conclude a unit price contract referred to in Article 79 (1) 2; |
| 11. | Where goods with a new disaster safety technology designated under Article 14 of the Disaster Safety Industry Promotion Act are to be manufactured or purchased; |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 23 (Designation of Persons Eligible for Competitive Procedure with Negotiation) |
| (1) | If the head of a local government or a contracting officer intends to conduct a competitive procedure with negotiation under Article 22, he or she shall designate at least five persons eligible for tendering to receive applications for participation in tendering from at least two persons: Provided, That if the number of persons eligible for designation is less than five, all such persons shall be designated. |
| (2) | In cases falling under paragraph (1), notice of the matters specified in the subparagraphs of Article 36 to each person eligible for tendering shall be given in lieu of the tender announcement. In such cases, the tender announcement date shall be deemed the date of notice, and Article 35 shall apply mutatis mutandis to the timing of notice. |
| (3) | If the head of a local government or a contracting officer intends to designate persons eligible for tendering pursuant to paragraph (1), he or she shall notify such fact and verify whether they participate in tendering, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 24 (Multiple Tenders for Similar Goods) |
If the head of a local government or a contracting officer intends to designate and purchase goods, the quality, performance, or efficiency, etc. of which is not lower than a certain level, from among similar kinds of goods with different quality, performance, or efficiency, etc., he or she may put a contract therefor out to multiple tenders. In such cases, the tenderer who calls the lowest ratio of bid price to the budget price set for the similar kind of goods shall become the successful bidder.
[This Article Wholly Amended on Jul. 26, 2010]
| Article 26 (Cases Where Negotiated Contracts May Be Used) |
| (1) | In any of the following cases, the head of a local government or a contracting officer may enter into a negotiated contract under the proviso of Article 9 (1) of the Act: <Amended on Sep. 15, 2011; Oct. 28, 2011; Nov. 23, 2011; May 23, 2012; Oct. 8, 2012; Mar. 23, 2013; Nov. 20, 2013; May 22, 2014; Nov. 19, 2014; Aug. 19, 2015; Jan. 15, 2016; Sep. 13, 2016; Sep. 29, 2016; Jul. 26, 2017; Jul. 24, 2018; 24. Jun. 25, 2019; Sep. 17, 2019; Jul. 14, 2020; Sep. 29, 2020; Nov. 3, 2020; Dec. 8, 2020; Jan. 5, 2021; Feb. 2, 2021; Dec. 16, 2021; Jan. 25, 2022; Sep. 20, 2022; Jan. 3, 2023; Apr. 11, 2023> |
| 1. | Where there is no time to call for tenders due to a natural disaster, the outbreak and prevalence of an infectious disease, operational movement of military forces, an urgent event, a significant rise in the prices of raw materials, and other cases corresponding thereto; |
| 2. | Where a disaster recovery, etc. is made under Ordinance of the Ministry of the Interior and Safety, such as a disaster in need of an urgent recovery where there is no time to call for tenders; |
| 4. | In any of the following cases, where competition is impossible due to technology or services of a specific person or a specific location, structure, quality, performance, efficiency, etc.: |
| (a) | Where a contract is entered into with the immediately preceding or current contractor meeting the criteria determined by the Minister of the Interior and Safety, as it is impracticable to identify who is liable for defects in facilities if any occurs in the future; |
| (b) | Where a contract is entered into with the current contractor meeting the criteria determined by the Minister of the Interior and Safety, as at least two contractors cannot conduct construction works at one site due to work congestion, etc.; |
| (c) | Where a contract for finish works is entered into with the immediately preceding or current contractor meeting the criteria determined by the Minister of the Interior and Safety; |
| (d) | Where competition is practically impossible because the relevant construction project is to be implemented in a border area or any other extraordinary area; |
| (f) | Where a person who manufactured or supplied the relevant goods installs, assembles (including test operations), or repairs such goods in person; |
| (g) | Where it is intended to place an order to manufacture or purchase goods patented or goods registered as a utility model or design and no appropriate substitute therefor is available; |
| (h) | Where the producer or possessor of the relevant goods is only one person and it is impossible to accomplish the purpose of the project by placing an order to manufacture or purchase other goods; |
| (i) | Where a contract for survey, design, surveillance, special land survey, training, education, exercise, use of information, or purchase of costumes (clothing), which requires a specific person's technology, quality, experience, or qualification, is entered into; or a contract for design services is entered into with a person who won a design competition under relevant statutes or regulations; |
| (j) | Where it is necessary to enter into a service contract for academic research with a specific person; |
| (k) | Where real estate, such as a parcel of land or a building, is purchased from a specific person, or a specific person’s property is leased; |
| (l) | Where it is required to procure goods in order to replace parts of goods, etc. already procured or to expand facilities, and such goods are likely to be incompatible if they are manufactured and supplied by any person, other than the person who manufactured and supplied the relevant goods; |
| (m) | Where a contract for the manufacture or purchase of goods or for services is entered into with a person who has a place of business in a specific place or location, since it would be difficult to achieve the purpose of the contract, unless a contract related to the use of the place of business is entered into with the person; |
| (n) | Where there are emergency situations, such as a possible delay in an ongoing construction project for a cultural heritage excavation (inspection) service under Article 11 of the Act on Protection and Inspection of Buried Cultural Heritage; or where it is necessary to maintain the continuity of the excavation of cultural heritage, such as the conversion of a sample prospection into a precise excavation survey; |
| 5. | Any of the following contracts: |
| (a) | A contract for a construction project under the Framework Act on the Construction Industry (excluding specialized construction works under that Act), the estimated price of which is not more than 400 million won, for a specialized construction work under that Act, the estimated price of which is not more than 200 million won, and for a construction project under any other statutes or regulations related to construction projects, the estimated price of which is not more than 160 million won; |
| (b) | A contract for the manufacture or purchase of goods or for services, the estimated price of which is not more than 20 million won; |
| (c) | A contract for the manufacture or purchase of goods or for services, which is entered into with the small enterprises prescribed in Article 2 (2) of the Framework Act on Small and Medium Enterprises or the micro enterprises prescribed in Article 2 of the Framework Act on Micro Enterprises and the estimated price of which is not less than 20 million won and not more than 100 million won: Provided, That the contracts include those for the manufacture or purchase of goods or for services entered into with those other than the small enterprises or micro enterprises in cases falling under Article 30 (1) 3 and the proviso of paragraph (2) of that Article; |
| (d) | A contract for the manufacture or purchase of goods or for services related to academic research, cost accounting, construction technology, etc., which requires special knowledge, technology, or qualification, among the contracts the estimated price of which is more than 20 million won but not more than 100 million won; |
| (e) | A contract for the manufacture or purchase of goods or for services, which is entered into with any of the following enterprises or cooperatives and the estimated price of which is more than 20 million but not more than 100 million won: Provided, That the enterprises or cooperatives falling under subitems (iii) through (vi) shall satisfy the employment ratio of vulnerable social groups, as determined and publicly notified by the Minister of the Interior and Safety: |
| (f) | A contract, which is neither for a construction project nor for the manufacture or purchase of goods or for services, including a lease contract the estimated price (calculated based on an annualized or total amount) of which is not more than 50 million won; |
| 6. | In any of the following cases where a specific business entity is required to purchase or manufacture special goods, property, etc. under other statutes: |
| (b) | In cases of placing an order with a factory (including a Saemaul factory) that occupies an agro-industrial complex prescribed in the Agricultural and Fishing Villages Improvement Act to manufacture or purchase goods directly manufactured by such factory; |
| (c) | In cases of placing an order with a factory that occupies a region designated for special support for small and medium enterprises pursuant to the Act on the Support and Promotion of Local Small and Medium Enterprises to purchase goods directly manufactured by such factory; |
| (d) | In cases of placing an order with a small and medium entrepreneur defined in subparagraph 1 of Article 2 of the Small and Medium Enterprises Promotion Act to manufacture or purchase any of the following products directly manufactured by such entrepreneur, insofar as it is within the effective period of certification or authorization granted by the competent Minister (including the extended period if the competent Minister extends the effective period of certification or designation; hereafter in this item the same shall apply): Provided, That if the effective period exceeds six years, it shall be adjusted to six years: |
| (iv) | Products manufactured using new technology certified, or designated and publicly notified pursuant to the following statutes, the performance of which is verified by the competent Minister in the stage of commercialization: |
| j. | Article 14 of the Disaster Safety Industry Promotion Act; |
| (viii) | Deleted; <Nov. 3, 2020> |
| (ix) | Products that have obtained a compliance certification under Article 16 (1) of the Disaster Safety Industry Promotion Act; |
| 7. | In any of the following cases, where it is necessary to enter into a contract with a specific relative, a local resident, a producer of specific goods, etc. or if any other equivalent reasons exist: |
| (a) | If a local government sells materials for recovery in its possession to persons who have sustained damage caused by an emergency disaster in cases of such disaster; |
| (b) | If a contract for a construction project, the estimated price of which is less than 20 million won, or for the growing of seedlings, the estimated price of which is less than 50 million won, is entered into directly with the residents or representative of the relevant region prescribed by Ordinance of the Ministry of the Interior and Safety, where the participation of a majority of the residents of the relevant region is necessary for the development of the community; |
| (c) | If an order is placed with a producer to manufacture or purchase goods produced directly in a welfare factory for persons of distinguished services to the State designated by the Minister of Patriots and Veterans Affairs or to directly sell or lease goods to such producer; |
| 7-2. | In any of the following cases, where an order is placed to provide jobs, veterans affairs, welfare services, etc. to persons who have rendered distinguished service to the State, persons with disabilities, etc.: |
| (c) | In cases of entering into a contract with a corporation established pursuant to the Social Welfare Services Act to manufacture or purchase goods manufactured by such corporation, to procure services directly performed by such corporation under a service contract, or to directly sell or lease goods to such corporation; |
| 8. | The following cases where it is found inefficient to enter into a contract through competition in light of the purpose, nature, etc. of the contract: |
| (a) | Where goods used by an overseas office of a local government are locally purchased; |
| (b) | Where bidding is found disadvantageous for the processing, loading and unloading, transportation, or storage of goods; |
| (d) | Deleted; <Nov. 20, 2013> |
| (e) | Deleted; <Nov. 20, 2013> |
| (f) | Deleted; <Nov. 20, 2013> |
| (g) | Where a contract is entered into with a person to whom a project of the State or a local government may be entrusted or delegated under other statutes or regulations, with respect to the relevant project; |
| (h) | Where it is necessary for a local government to keep its activities confidential, such as the printing, etc. of test papers and confidential documents; |
| (i) | Where the head of a central administrative agency intends to purchase products, the innovativeness of which is recognized in accordance with standards and procedures determined by the Minister of the Interior and Safety in consultation with the Minister of the Interior and Safety, among products developed through research and development projects under relevant statutes or regulations, such as the Framework Act on Science and Technology; |
| (2) | Where the head of a local government or a contracting officer enters into a negotiated contract pursuant to paragraph (1) 6 (b), 7 (c), and 7-2, he or she shall verify the following matters: <Amended on Sep. 15, 2011; Nov. 20, 2013; Nov. 24, 2014> |
| 1. | Qualification requirements for persons eligible for a negotiated contract; |
| 2. | Whether it is possible to directly manufacture goods and directly perform services subject to a negotiated contract. |
| (3) | Deleted. <Sep. 20, 2022> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 26 (Re-Announcement of Tender and Negotiated Contract) |
| (1) | If tendering fails to become valid or there is no successful bidder after re-announcement of tender pursuant to Article 19 (2), the head of a local government or a contracting officer may use a negotiated contract. In such cases, if an order is to be awarded through alternate tendering under Article 95 (1) 4, turnkey tendering under subparagraph 5 of that paragraph, or technical proposal tendering under subparagraphs 2 and 3 of Article 127, but there is only one tenderer after the re-announcement of tender, and if the price is deemed appropriate after a local deliberation committee on construction technology deliberates, and evaluates the design scores of, the schematic design documents, final design documents, or technical proposals submitted by the bidding participant under Articles 98 (4) 3, 132 (2) 2, and 134 (3) 2, the head of a local government or a contracting officer may enter into a negotiated contract with the relevant tenderer. <Amended on Sep. 13, 2016; Aug. 9, 2017> |
| (2) | Notwithstanding paragraph (1), if the Minister of the Interior and Safety determines and publicly notifies a specific period to overcome economic crisis in the State or in the relevant region resulting from a disaster, economic recession, mass unemployment, etc. referred to in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety, and if only one tenderer participates in competitive tendering under Articles 15 and 16, a negotiated contract may be entered into without re-announcement of tender under Article 19 (2). <Newly Inserted on Jul. 14, 2020; Sep. 20, 2022> |
| (3) | The price and other terms and conditions of a negotiated contract made pursuant to paragraphs (1) and (2) shall not differ from the price and other terms and conditions determined for the initial tendering procedure, except for bonds and deadlines. <Amended on Sep. 20, 2022> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 27 (Negotiated Contract upon Cancellation or Termination of Contract) |
| (1) | Where the head of a local government or a contracting officer cancels or terminates a contract as the other party to the contract fails to perform his or her contractual duties after the conclusion of the contract, he or she may adopt a negotiated contract. |
| (2) | In cases of a negotiated contract under paragraph (1), no change shall be made to the price and other terms and conditions determined for the initial tendering procedure, except for bonds and deadlines. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 28 (Division of Contract into Negotiated Contracts) |
In cases falling under Article 25 (1) 6 (a), 26, or 27, a contract may be divided into negotiated contracts with two or more persons in an amount not less than the budget price or successful bid price, only if it is possible to divide the budget price or successful bid price into prices for respective negotiated contracts. [This Article Wholly Amended on Jul. 26, 2010]
| Article 29 (Contract Price of Negotiated Contract for Continuing Construction Project) |
A contract price for a phase subsequent to the current phase of a continuing construction project (referring to the project, for which a negotiated contract may be executed with the immediately preceding or current contractor pursuant to Article 25 (1) 4 (a) through (c)) shall not exceed the amount computed by multiplying the budget price by the winning bid ratio (referring to the ratio of the successful bid price or contract price to the budget price; hereinafter the same shall apply) for the first year’s construction works: Provided, That this shall not apply to cases determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> [This Article Wholly Amended on Jul. 26, 2010]
| Article 30 (Procedures for Selection of Persons Eligible for Negotiated Contracts) |
| (1) | If the head of a local government or a contracting officer intends to enter into a negotiated contract, he or she shall receive a written estimate from at least two persons: Provided, That in any of the following cases, a written estimate submitted by one person shall suffice: <Amended on Sep. 15, 2011; Nov. 24, 2014; Jul. 24, 2018; Jul. 14, 2020; Sep. 20, 2022> |
| 2. | In cases of a contract for a construction project, for the manufacture and purchase of goods, or for services, the estimated price of which is not more than 20 million won: Provided, That the estimated price shall not exceed 50 million won in cases of entering into a contract with any of the following enterprises or cooperatives: |
| 3. | Where there is only one person who has submitted a written estimate, although a designated information processing system has been used for receiving written estimates under paragraph (2), and it is manifestly foreseeable that only one person will submit a written estimate, even if written estimates are invited again. |
| (2) | If it is required to receive written estimates from at least two persons under the main clause of paragraph (1) or if a negotiated contract may be entered into without re-announcement of tender under Article 26 (2), the designated information processing system shall be used: Provided, That a designated information processing system need not be used in cases determined by the Minister of the Interior and Safety, such as where there is a considerable need for quality verification and budget savings. <Amended on Jan. 15, 2016; Jul. 26, 2017; Jul. 14, 2020; Sep. 20, 2022> |
| (3) | If it is impossible to determine the other party to a contract, such as where the estimated price entered in a written estimate submitted in accordance with paragraphs (1) and (2) does not fall within the scope of the budget price (referring to the amount including the estimated price plus the amount of the value-added tax if the preparation of the estimated price is omitted pursuant to Article 8 (2)), written estimates shall be submitted again to determine a person eligible for a negotiated contract. |
| (4) | Notwithstanding paragraphs (1) through (3), submission of a written estimate may be omitted in cases prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (5) | The head of a local government or a contracting officer shall determine persons eligible for negotiated contracts in accordance with the criteria determined by the Minister of the Interior and Safety, such as the estimated prices of persons who submit the written estimate and the ability to fulfill the contract. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 31 (Disclosure of Details of Negotiated Contracts) |
If the head of a local government or a contracting officer enters into a negotiated contract, he or she shall disclose the details of the contract to the public. In such cases, Article 124 shall apply mutatis mutandis to the matters to be disclosed and the period of disclosure, etc. [This Article Wholly Amended on Feb. 5, 2014]
| Article 32 (Application Mutatis Mutandis of Provisions regarding Tenders) |
Article 13 (1) shall apply mutatis mutandis to the qualifications of persons eligible for negotiated contracts. [This Article Wholly Amended on Aug. 5, 2009]
| Article 32-2 (Prior Disclosure of Purchase Specification) |
| (1) | The head of a local government or a contracting officer shall make a prior disclosure of purchase specifications under the main clause of Article 9-2 (1) of the Act, for five days through a designated information processing system: Provided, That it shall be made public only for three days in urgent cases. |
| (2) | "Goods and services prescribed by Presidential Decree are put out to tender, such as urgently needed supplies, secret supplies, or goods and services the estimated prices of which are lower than 50 million won" in the proviso of Article 9-2 (1) of the Act means any of the following: |
| 1. | Goods or services purchased in urgent need; |
| 2. | Goods or services whose purchase shall be kept confidential; |
| 3. | Goods or services, the estimated price of which is less than 50 million won; |
| 4. | Goods or services on which the prior disclosure of purchase specification is made at least once in the relevant year; |
| 5. | Goods or services that may be purchased by a negotiated contract under Article 25; |
| 6. | Food (including materials or processed goods), or agricultural, livestock, or fishery products. |
| (3) | Where the relevant enterprise submits an opinion under Article 9-2 (1) of the Act in connection with the prior disclosure of purchase specification, the head of a local government or a contracting officer shall examine the details thereof, take necessary measures, and notify the person who has submitted the opinion of the results thereof without delay, within 14 days after receipt of such opinion: Provided, That if the opinion submitted is regarding a contract specified in any subparagraph of Article 108 (1), a notice shall be given within 50 days from the date the opinion is submitted, following deliberation by a contract deliberation committee established under Article 32 of the Act. |
[This Article Newly Inserted on Nov. 29, 2016]
CHAPTER IV Tendering and Awarding Procedures
| Article 33 (Tender Announcement) |
| (1) | Where the head of a local government or a contracting officer intends to call for tenders, he or she shall publicly announce such fact through a designated information processing system, except as otherwise provided in this Decree: Provided, That public announcement may be also made through a website established and operated by the relevant local government, if necessary. |
| (2) | Where it is intended to change the details of a project, budget price, qualifications for participation in tendering, terms and conditions of a tender or contract, etc. after tender is announced under paragraph (1), a contracting officer shall cancel the original tender announcement and give a new announcement: Provided, That if there is a minor error in the details of the tender announcement, such as incorrect reference to relevant statutes or regulations, a corrective announcement shall be made and, in such cases, the new announcement shall be made by adding five days to the remaining number of days of tender announcement. <Amended on Sep. 13, 2016> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 34 (Notice of Participation in Tendering) |
When necessary to maintain security, the head of a local government or a contracting officer may notify a relevant person qualified to participate in tendering of the matters prescribed in Article 36, as prescribed by Ordinance of the Ministry of the Interior and Safety, and have him or her apply for participation in tendering, notwithstanding Article 33. In such cases, Article 35 shall apply mutatis mutandis to the timing of notice. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> [This Article Wholly Amended on Jul. 26, 2010]
| Article 35 (Timing for Tender Announcement) |
| (1) | A tender announcement shall be made at least seven days before the deadline for the submission of the tender documents. |
| (2) | Notwithstanding paragraph (1), if an on-site presentation is to be given under Article 15 (3) in cases of a tender for a construction project, the tender announcement shall be made at least seven days prior to the date immediately preceding the date of the on-site presentation: Provided, That a tender announcement for a construction project under Article 14 shall be made at least 30 days prior to the date immediately preceding the date of the on-site presentation. |
| (3) | When no on-site presentation is required for a tender for a construction project, a tender announcement shall be made before any of the following periods, which shall be counted from the day immediately before the deadline for the submission of tender documents, notwithstanding paragraphs (1) and (2): |
| 1. | Seven days, where the estimated price is less than one billion won; |
| 2. | 15 days, where the estimated price is at least one billion won, but less than five billion won; |
| 3. | 30 days, where the estimated price is at least five billion won but less than the publicly notified amount; |
| 4. | 40 days, if the estimated price is more than the publicly notified amount. |
| (4) | Notwithstanding paragraphs (1) through (3), in any of the following cases, a tender announcement may be made not later than five days from the day immediately before the deadline for the submission of tender documents: <Amended on Jan. 15, 2016> |
| 1. | In cases of a re-announcement of tender under Article 19 (2); |
| 2. | In cases necessary for early budget execution in light of the financial policies of the State or a local government; |
| 3. | Where it is inevitable for the adjustment of a project schedule in connection with any other project of the State or a local government; |
| 4. | Where it is necessary for an urgent event or urgent prevention of, or restoration from, a disaster, etc.; |
| 5. | Other cases equivalent to those provided in subparagraph 2 or 3, where a tender announcement is urgently necessary. |
| (5) | Notwithstanding paragraph (1), in cases of a specification bid or a technical bid under Article 18, a contract by negotiation under Articles 43 and 44, or a contract through competitive dialogue under Article 44-2, a tender announcement shall be made prior to the period falling under any of the following subparagraphs, which shall be counted from the day immediately before the deadline for submission of a specification or technical bid or a proposal: <Amended on Nov. 24, 2014; Jun. 25, 2019> |
| 1. | 10 days, where the estimated price is less than 100 million won; |
| 2. | 15 days, where the estimated price is at least 100 million won, but less than one billion won; |
| 3. | 40 days, where the estimated price is at least one billion won. |
| (6) | Notwithstanding paragraph (5), if a specification bid or technical bid under Article 18, a contract by negotiation under Articles 43 and 44, or a contract through competitive dialogue under Article 44-2 falls under any subparagraph of paragraph (4), the tender announcement may be made at least 10 days prior to the deadline for submitting proposals: <Amended on Jan. 15, 2016; Jun. 25, 2019> |
| 1. | Deleted; <Jan. 15, 2016> |
| 2. | Deleted. <Jan. 15, 2016> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 36 (Content of Tender Announcement) |
A tender announcement shall state the following matters: <Amended on Sep. 15, 2011; Nov. 20, 2013; Nov. 29, 2016; Jul. 14, 2020; Sep. 20, 2022; Mar. 7, 2023>
| 1. | Subject matters of the tender; |
| 2. | The place, date, and time of the tender or of the bid opening; |
| 3. | Matters regarding the place, date, and time of the on-site presentation, the requirements for participation, and whether to have an obligation of participation, in cases of the tender for a construction project; |
| 4. | Matters regarding qualification of bidding participants; |
| 5. | Matters regarding the payment of a tender bond and measures to record the tender bond as revenue of a local government; |
| 6. | The method for determining a successful bidder (including the date for the submission of documents necessary for determining a successful bidder and the date scheduled to notify the successful bidder, if a successful bidder is determined pursuant to the main clause of Article 42 (1) or subparagraph 1 of that paragraph); |
| 7. | The scheduled period for performing the contract; |
| 8. | The place where terms and conditions proposed for the contract are publicly notified; |
| 9. | Matters regarding the invalidation of a tender under Article 39 (4); |
| 10. | The place where bidding documents are available for inspection and issuance and fees for the issuance of such documents; |
| 11. | The address, etc. of an agency from which additional information can be acquired; |
| 12. | The statement to the effect that it is allowed to submit a tender by mail, etc., if it is allowed to do so, and the address to which a tender is to be sent; |
| 13. | If it is required to submit a tender document through a designated information processing system under Article 39 (1), the details thereof; |
| 14. | The statement to the effect that a joint contract is acceptable, if a joint contract under Article 29 of the Act is permitted, and the method for performing the joint contract (in cases of a joint contract under the main clause of Article 29 (2) of the Act, including restrictions on the qualification of members of a joint venture or consortium and the participation ratio of local companies under Article 88 (6)); |
| 15. | Matters regarding alternate tendering, turnkey tendering, etc. in cases of a tender under Article 94; |
| 16. | The place, date, and time of a request for proposal presentation in cases of a contract by negotiation under Article 43 in which a request for proposal presentation is to be made; |
| 17. | Matters regarding the registration of participation in tender and bidding documents; |
| 18. | Methods for raising an objection if a person has an objection to the contents of the tender announcement; |
| 19. | Matters regarding reporting of irregularities or unfair practices related to tenders; |
| 20. | In relation to determination of the budget price under Article 10 (1) 2, the criteria and ratio determined by the Minister of the Interior and Safety, including standards for setting material costs, labor costs, and expenses that comprise the goods, construction works, services, etc. which are the subject matter of the contract, the ratio of general administrative expenses, and the profit rate; |
| 21. | Other matters necessary for bidding. |
[This Article Wholly Amended on Jul. 26, 2010]
| (1) | The amount of a tender bond under Article 12 of the Act shall be at least 5/100 of the bid price (in cases of a bid on a unit price basis, the amount shall be computed by multiplying the maximum of the expected quantity for each installment by a unit price; hereafter in this paragraph the same shall apply): Provided, That if the Minister of the Interior and Safety determines and publicly notifies a specific period to overcome economic crisis in the State or in the relevant region resulting from a disaster, economic recession, mass unemployment, etc. referred to in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety, the amount of the tender bond may be at least 25/1,000 of the bid price. <Amended on Aug. 19, 2019; Jul. 14, 2020> |
| (2) | A bid bond shall be paid in cash (including cashier's checks issued by postal offices or banks under the Banking Act) or by means of a letter of guarantee, etc. provided in the following subparagraphs: <Amended on Jan. 17, 2011; Jan. 26, 2011; Sep. 15, 2011; May 23, 2012; Mar. 23, 2013; May 22, 2014; Nov. 24, 2014; Aug. 19, 2015; Feb. 11, 2016; May 31, 2016; Jul. 24, 2018; Dec. 8, 2020> |
| 4. | A letter of guarantee issued for the payment of debts, etc. by any of the following institutions: |
| (l) | The Electric Contractors' Financial Cooperative under the Electric Constructors' Financial Cooperative Act; |
| (m) | An association of electrical engineers under the Electric Technology Management Act (limited to an association publicly notified by the Minister of Trade, Industry and Energy in consultation with the Minister of Economy and Finance); |
| (p) | The Cultural Heritage Conservation Association under the Act on Cultural Heritage Maintenance; |
| 5. | A term deposit certificate issued by a bank, a foreign bank, or a postal office specified in subparagraph 1; |
| (3) | The head of a local government or a contracting officer may exempt any of the following bidding participants from paying tender bonds under the proviso of Article 12 (1) of the Act: <Amended on Jan. 26, 2011; Sep. 15, 2011; Mar. 23, 2013; Nov. 20, 2013; Nov. 19, 2014; Nov. 24, 2014; Sep. 13, 2016; Jul. 26, 2021; Dec. 16, 2021; Mar. 25, 2022; Mar. 7, 2023> |
| 4. | A corporation, at least 50/100 of whose fundamental property is invested or contributed by the State or a local government (including cases in which such ownership is vested in the State or a local government under statutes; hereinafter the same shall apply); |
| 5. | Any of the following bidding participants: |
| (a) | A cooperative, a joint business corporation of cooperatives, or the National Agricultural Cooperative Federation under the Agricultural Cooperatives Act; |
| (b) | A fishing community society, a fisheries cooperative, and the National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act; |
| (g) | The Korea Research Institute for Local Administration under the Korea Research Institute for Local Administration Support Act; |
| (i) | The Public Officials Benefit Association under the Public Officials Benefit Association Act; |
| (l) | The Korea Local Autonomy Development Institute and the Research Institute of Local Councils established under the Civil Act; |
| 7. | Other persons deemed unlikely to avoid executing the contract after being determined as the successful bidder in tendering procedures. |
| (4) | If any reason arises for recording a tender bond as revenue of a local government under Article 12 (3) of the Act with respect to a person who has been exempted from the payment of a tender bond under paragraph (3), the head of the local government or a contracting officer shall require him or her to submit a document assuring payment of an amount equivalent to the tender bond to guarantee such payment. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 38 (Measures to Record Tender Bonds as Revenue of Local Government) |
| (1) | If a tender bond has been submitted in the form of a letter of guarantee, etc. under Article 37 (2) and if any reason arises for recording the tender bond as revenue of a local government under Article 12 (3) of the Act, the head of a local government or a contracting officer shall without delay deliver a notice to that effect to the relevant financial company, etc., the relevant guarantee institution and a collection officer (including persons partially in charge of the duties of collection officers) under the subparagraphs of Article 37 (2), or a treasurer in charge of cash other than tax expenditure and revenue, etc.; and shall require the relevant tender bond to be collected in cash or to be converted into securities owned by a local government, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | If any reason arises for recording a tender bond as revenue of a local government under Article 12 (3) of the Act with respect to a person who has been exempted from the payment of the tender bond under the proviso of Article 12 (1) of the Act, the head of a local government or a contracting officer shall deliver a notice to that effect, accompanied by a document assuring payment of an amount equivalent to the amount of the tender bond under Article 37 (4), to the competent collection officer, and shall require the officer to collect in cash the amount equivalent to the tender bond from the relevant successful bidder. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 39 (Submission and Receipt of Tender Documents and Invalidation of Tender) |
| (1) | If a tenderer submits a tender document, the head of a local government or a contracting officer shall have the tenderer submit it through a designated information processing system: Provided, That if prior consultation with the Minister of the Interior and Safety is made, a tender may be submitted using an information processing system designated and publicly notified by the head of a local government, other than the designated information processing system. <Amended on Sep. 15, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Sep. 20, 2022> |
| (2) | Notwithstanding paragraph (1), the head of a local government or a contracting officer may allow tenders to be directly summited at the place, date, and time indicated in the tender announcement: Provided, That if deemed necessary, tenders may be submitted by mail, etc. <Amended on Sep. 20, 2022> |
| (3) | No tenderer shall replace, change, or cancel a tender document he or she has submitted: Provided, That this shall not apply to cases determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | A tender participated in by a person unqualified to participate in the tendering procedure under Articles 13 and 20 or a tender falling under any ground prescribed by Ordinance of the Ministry of the Interior and Safety shall be null and void: Provided, That where a joint venture or consortium is organized under Article 88 (1), even if there are reasons to render a tender null and void because of some members of the joint venture or consortium, if the joint venture or consortium, excluding the relevant unqualified members, can meet the qualifications to participation in the tendering procedure, the tender shall not be rendered null and void. <Amended on Mar. 23, 2013; Nov. 19, 2014; Nov. 24, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 40 (Bid Opening and Announcement of Successful Bidder) |
| (1) | The head of a local government or a contracting officer shall open bids with bidders present at the place, date, and time specified in the tender announcement. In such cases, if any bidder is absent from the opening, a public official not involved in tendering may be instructed to attend the opening. |
| (2) | Upon determining a qualified person as a successful bidder, the head of a local government or a contracting officer shall announce such successful bidder without delay. |
| (3) | Notwithstanding paragraphs (1) and (2), if a tender document is submitted through an information processing system under Article 39 (1), the procedures and methods indicated in the tender announcement shall apply to the bid opening and the announcement of the successful bidder. <Amended on Sep. 20, 2022> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 41 (Determination of Successful Bidder in Tenders Which Are Source of Revenues of Local Government) |
In tenders which are a source of revenues of a local government under Article 13 (1) of the Act, a person who bids the highest price shall be determined as the successful bidder, insofar as the highest price is equal to or higher than the budget price. <Amended on Aug. 5, 2009>
| Article 42 (Determination of Successful Bidder in Tenders Which Create Encumbrances) |
| (1) | In tenders which create an encumbrance, the head of a local government or a contracting officer shall determine a successful bidder by examining persons in their ability to perform the relevant contract in the order of the lowest bidding prices insofar as the lowest bidding price is equal to or lower than the budget price: Provided, That a successful bidder shall be determined according to the relevant subparagraph, in any of the following cases: <Amended on Mar. 23, 2013; Nov. 19, 2014; Aug. 19, 2015; Jan. 15, 2016; Jul. 26, 2017> |
| 1. | Where the estimated price of a tender for a construction project is not less than 30 billion won, the successful bidder shall be determined pursuant to Article 42-3; |
| 2. | Deleted; <Aug. 9, 2017> |
| 3. | In cases of a tender under Article 18, a person who tenders the lowest price, which shall not exceed the budget price, shall be determined as a successful bidder: Provided, That where both a specification bid and a price bid are conducted simultaneously or a technical bid and a price bid are conducted simultaneously pursuant to Article 18 (3), a successful bidder shall be determined as prescribed by Ordinance of the Ministry of the Interior and Safety if only one tenderer exists. |
| (2) | The examination on the ability to perform a contract under paragraph (1) shall determine whether the relevant tenderer is qualified according to the examination criteria determined by the Minister of the Interior and Safety by comprehensively taking into account the performance records, technical ability, financial position, the level of diligence in performing past contracts, the appropriateness of the procurement costs of materials and personnel, the appropriateness of the subcontract management plan and the implementation plan for the labor conditions of outsourced workers, the level of compliance with the contract order, quality of the past performance, bid price, etc.; and shall determine the relevant tenderer as the successful bidder if the tenderer is deemed qualified according to the results of the examination. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jun. 25, 2019> |
| (3) | Notwithstanding paragraph (2), the head of a local government may determine examination criteria different from those determined by the Minister of the Interior and Safety, after consultation with the Minister of the Interior and Safety, where deemed necessary due to the characteristics of construction works, goods, services, etc. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | If the Minister of the Interior and Safety does not separately determine examination criteria, the Mayor/Do Governor may determine examination criteria applicable to the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do") and a Si/Gun/autonomous Gu under the jurisdiction of the City/Do (hereinafter referred to as "Si/Gun/Gu"). In such cases, the Mayor/Do Governor shall grant a grace period of at least 15 days for the relevant examination criteria. <Amended on Mar. 23, 2013; Nov. 20, 2013; Nov. 19, 2014; Jul. 26, 2017; Sep. 20, 2022> |
| (5) | If a Mayor/Do Governor has formulated the examination criteria pursuant to paragraph (4), he or she shall notify the Minister of the Interior and Safety of the details thereof before the relevant examination criteria are implemented. <Newly Inserted on Sep. 20, 2022> |
| (6) | If the Minister of the Interior and Safety deems that the examination criteria notified under paragraph (5) are highly likely to undermine transparency, fairness, etc. of a contract, he or she may recommend the relevant Mayor/Do Governor to improve or supplement them. In such cases, the Mayor/Do Governor shall endeavor to reflect the recommendation. <Newly Inserted on Sep. 20, 2022> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 42-2 Deleted. <Jan. 15, 2016> |
| Article 42-3 (Determination of Successful Bidder for Person Who Has Submitted Tender Most Favorable to Local Government) |
| (1) | In any of the following cases, the head of a local government or a contracting officer may select a person who has submitted a tender most favorable to the local government pursuant to Article 13 (2) 2 of the Act as a successful bidder: Provided, That in cases falling under subparagraph 3, a person who has submitted a tender most favorable to the local government shall be determined as a successful bidder: <Amended on Aug. 19, 2015; Jan. 15, 2016; Sep. 13, 2016; Aug. 9, 2017> |
| 1. | A construction project, the estimated price of which is at least 30 billion won; |
| 2. | Manufacturing goods or delivering services, the estimated price of which is at least one billion won; |
| (2) | In cases of a tender under paragraph (1), a person who scores the highest points in total based on a comprehensive evaluation of the results of evaluation of construction quality, technical human resources, details of a proposal, the period for fulfilling a contract, bid price, ability to perform construction projects, social responsibility, etc. shall be determined as the successful bidder. <Amended on Jan. 15, 2016; Sep. 13, 2016> |
| (3) | The criteria, methods, etc. for evaluation under paragraph (2) shall be determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | The head of a local government may establish a committee on the comprehensive evaluation of bidders to conduct the evaluation under paragraph (2). <Newly Inserted on Jan. 15, 2016> |
| (5) | Matters necessary for the composition and operation of the committee on the comprehensive evaluation of bidders shall be prescribed by rule of the relevant local government. <Newly Inserted on Jan. 15, 2016> |
[This Article Newly Inserted on Aug. 5, 2009]
| Article 42-4 (Determination of Successful Bidder through Design Competition) |
| (1) | If the head of a local government or a contracting officer intends to determine a person who wins a design competition as a successful bidder under Article 13 (2) 3 of the Act, he or she shall select a person who scores the highest points as a successful bidder by examining works submitted for the design competition, and shall determine the successful bidder by drawing lots if at least two persons score the highest points. |
| (2) | The head of a local government or a contracting officer shall issue to a person who intends to participate in a design competition necessary documents, such as those explaining how to apply for the design competition. In such cases, he or she may post such documents on the designated information processing system in lieu of such issuance. |
| (3) | The head of a local government or a contracting officer may reimburse a person, who is not determined as a successful bidder despite winning a design competition, for part of expenses incurred in preparing the works submitted for the design competition, within the budget. |
| (4) | Criteria, methods, procedures, etc. for examining works submitted for a design competition shall be determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 43 (Execution of Contract by Negotiation) |
| (1) | If the head of a local government or a contracting officer deems it necessary for the expertise, technical competency, creativity, artistry, safety of public facilities, etc. in concluding a contract for goods (excluding simple purchase of goods) or services (excluding services providing simple labor, such as cleaning and security), he or she may evaluate proposals submitted by multiple suppliers and enter into a contract by negotiation with a person deemed most favorable to the relevant local government from among those who submit a tender with a price equal to or lower than the estimated price plus the value-added tax (referring to the budget price, if the budget price has been determined), notwithstanding Article 42. <Amended on Sep. 15, 2011; May 23, 2012; Mar. 23, 2013; Nov. 19, 2014; Sep. 13, 2016> |
| (2) | Deleted. <May 23, 2012> |
| (3) | If the head of a local government or a contracting officer intends to enter into a contract under paragraph (1), he or she shall include in the tender announcement a statement to the effect that the contract is by negotiation. <Amended on Sep. 15, 2011> |
| (4) | The head of a local government or a contracting officer shall issue necessary documents, including a request for proposal, to a person who intends to participate in the procedure for a contract by negotiation. In such cases, he or she may post such information on the designated information processing system in lieu of such issuance. <Amended on Sep. 15, 2011> |
| (5) | Deleted. <Sep. 13, 2016> |
| (6) | If the head of a local government or a contracting officer deems it necessary when he or she intends to enter into a contract pursuant to paragraph (1), taking into consideration the nature, scale, etc. of a contract, he or she may hold a request for proposal presentation, etc. <Amended on Sep. 15, 2011> |
| (7) | Deleted. <Sep. 20, 2022> |
| (8) | The examination on the ability to perform a contract for the evaluation under paragraph (1) shall comply with the detailed examination standards and procedures determined by the head of the relevant local government in accordance with the standards determined by the Minister of the Interior and Safety, in comprehensive consideration of the performance records, technical ability, project implementation plan, financial position, bid price, etc. of the person who intends to enter into the contract; and the head of a local government shall make them available for inspection by such person. <Amended on Sep. 15, 2011; Mar. 23, 2013; Nov. 19, 2014; Sep. 13, 2016; Jul. 26, 2017> |
| (9) | For the purpose of evaluating a proposal submitted under paragraph (1), the proposal evaluation committee (hereafter in this Article referred to as "committee") shall be established in a local government. <Amended on Sep. 15, 2011> |
| (10) | Where the head of a local government or a contracting officer evaluates a proposal pursuant to paragraph (1), such evaluation shall undergo deliberation by the committee. <Amended on Sep. 15, 2011> |
| (11) | The committee shall be comprised of public officials of the State and other local governments, persons with extensive knowledge of and experience in contracting, and so forth in each local government. <Amended on Sep. 15, 2011> |
| (12) | Deleted. <Sep. 13, 2016> |
| (13) | Deleted. <Sep. 13, 2016> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 44 (Contracting Methods for Knowledge-Based Projects) |
| (1) | If the head of a local government or a contracting officer enters into a contract for any of the following projects (hereinafter referred to as "knowledge-based project") among projects requiring artistry or creativity or projects generating high added value by utilizing highly intensive knowledge, such as information science technologies, he or she may preferentially apply the method of entering into a contract by negotiation under Article 43: <Amended on Jan. 17, 2011; May 22, 2014; Jan. 15, 2016; Sep. 13, 2016; Jul. 26, 2017; Aug. 9, 2017; Dec. 8, 2020; Sep. 14, 2021> |
| 7. | Academic research services regarding basic science or applied science; |
| 8. | A sculpture project involving artistry and creativity, such as a memorial tower, monument, cenotaph, and sculpture; |
| (2) | If the head of a local government or a contracting officer intends to enter into a contract by negotiation under paragraph (1), he or she shall determine detailed criteria in accordance with the methods for evaluating proposals, the procedures for negotiations, etc. determined by the Minister of the Interior and Safety and enter into the contract. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 44-2 (Execution of Contract through Competitive Dialogue) |
| (1) | In cases of any of the following goods or service contracts that require expertise or technical competency, the head of a local government or a contracting officer may receive proposals after adjusting and finalizing the details of subject matters of the contract, methods for performing the contract, etc. through competitive or technical dialogue (hereinafter referred to as "competitive dialogue") with persons eligible for tendering, and evaluate the proposals, and enter into a contract with a person deemed most favorable to the local government, notwithstanding Article 42: |
| 1. | Where it is impractical to decide the details of technical requirements or details of the final subject matters of the contract, etc. in advance; |
| 2. | Where it is impractical to select the optimal alternative as the alternatives of goods, services, etc. are diverse; |
| 3. | Where it intends to buy non-commercial goods; |
| 4. | Other cases deemed necessary by the head of the competent local government, such as where the details of the subject matters of the contract are complex or highly difficult. |
| (2) | If the head of a local government or a contracting officer intends to enter into a contract under paragraph (1), he or she shall include in the tender announcement a statement to the effect that the contract is through competitive dialogue. |
| (3) | The head of a local government or a contracting officer shall examine the details, etc. of proposals submitted by persons eligible for tendering before undergoing competitive dialogue and select persons to participate in the competitive dialogue. |
| (4) | The head of a local government or a contracting officer shall issue necessary documents, such as the request for proposal finalized through competitive dialogue, to persons eligible for tendering who have participated in the competitive dialogue. |
| (5) | The head of a local government or a contracting officer may fully or partially reimburse those who have participated in competitive dialogue and submitted proposals but have not been selected as the successful bidder, for costs for participating in the competitive dialogue, within the budget. |
| (6) | Article 43 (4) and (6) through (11) shall apply mutatis mutandis to the request for proposal presentation, the detailed criteria for entering into contracts, evaluation on proposals, etc. when entering into a contract through competitive dialogue. In such cases, “contract by negotiation” shall be construed as “contract through competitive dialogue.” |
| (7) | Except as provided in paragraph (1) through (6), matters regarding the methods and procedures for competitive dialogue and the reimbursement, etc. of costs for participating in the competitive dialogue shall be determined by the Minister of the Interior and Safety. |
[This Article Newly Inserted on Jun. 25, 2019]
| Article 45 (Determination of Successful Bidder Based on Quality) |
| (1) | If deemed necessary for entering into a contract for manufacturing or purchasing goods, the head of a local government or a contracting officer shall select as a successful bidder a person who offers the most economical bid price at a level not exceeding the budget price, taking into comprehensive consideration the quality, specifications, etc. of the goods in addition to the bid price of the goods according to the criteria determined by the Minister of the Interior and Safety, such as cases where the quality of the goods considerably differs depending on prices, notwithstanding Article 42. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | If the head of a local government or a contracting officer intends to determine a successful bidder pursuant to paragraph (1), he or she shall determine evaluation criteria for the quality, etc. of the relevant goods and make them available for inspection by bidding participants before calling for tenders. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 46 (Determination of Successful Bidder in Selling Off Large Quantity of Goods) |
If it is intended to portion a large quantity of goods into desired quantities and sell them off under Article 17 (1), a successful bidder shall be determined in the order of the highest bidding prices, from among persons who bid a unit price of not less than the budget price, until the sales quantity is reached, notwithstanding Article 41. [This Article Wholly Amended on Jul. 26, 2010]
| Article 46 (Determination of Successful Bidder in Manufacturing and Purchasing Large Quantity of Goods) |
If it is intended to manufacture or purchase a large quantity of goods by portioning them into desired quantities under Article 17 (2), a successful bidder shall be determined in the order of the lowest bidding prices, from among persons who bid a unit price not exceeding the budget price, until the desired quantity is reached, notwithstanding Article 42. [This Article Wholly Amended on Jul. 26, 2010]
| Article 48 (Determination of Successful Bidder in Cases of Identical Bid Prices) |
| (1) | In any of the following cases where at least two persons (referring to persons ranking top two, with identical total scores, in cases of a tender under Article 42 (1) 1) bid the same price that can be the successful bid price, the head of a local government or a contracting officer shall determine a successful bidder by the method prescribed in the relevant subparagraph: <Amended on Jan. 15, 2016; Sep. 13, 2016; Jul. 26, 2017> |
| 1. | Where an open tender is conducted for desired quantities under Article 17: The tenderer who bids for the largest quantity shall be determined as the successful bidder, but if the bids are identical in quantity as well, the successful bidder shall be determined by drawing lots; |
| 2. | Where the successful bidder is determined pursuant to the main clause of Article 42 (1): The person who scores the highest points in the examination on the ability to perform a contract shall be determined as the successful bidder, but the successful bidder shall be determined by drawing lots where the results of such examination are the same as well; |
| 3. | Where the successful bidder is determined pursuant to Article 42 (1) 1: The person who scores the highest aggregate points shall be determined as the successful bidder by comprehensively evaluating the results of evaluation of construction quality, technical human resources, details of a proposal, the period for performing a contract, bid price, ability to perform construction projects, social responsibility, etc.; however, if such aggregate points are the same, the successful bidder shall be determined according to the criteria determined by the Minister of the Interior and Safety based on the capability to perform technical competence, bid price, etc.; |
| 4. | Deleted; <Aug. 9, 2017> |
| 5. | Where the successful bidder is determined pursuant to the main clause of Article 42 (1) 3: The person who offers better specifications or a higher level of technical competence shall be determined as the successful bidder; however, if the results of evaluation of specifications or technical competence are identical, the successful bidder shall be determined by drawing lots. |
| (2) | In cases falling under paragraph (1), if a bidder is not present or does not draw a lot, a public official who has not been involved in the bidding may draw a lot on his or her behalf. |
[This Article Wholly Amended on Jul. 26, 2010]
CHAPTER V EXECUTION AND PERFORMANCE OF CONTRACTS
| Article 49 (Preparation of Written Contract) |
The form of a written contract prepared by the head of a local government or a contracting officer under Article 14 (1) of the Act and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> [This Article Wholly Amended on Feb. 5, 2014]
| Article 50 (Omission of Preparation of Written Contract) |
| (1) | The preparation of a written contract may be omitted under the proviso of Article 14 (1) of the Act in any of the following cases: <Amended on Feb. 5, 2014> |
| 1. | Where the contract price to be executed is not more than 50 million won; |
| 2. | Where a transaction is made through an auction; |
| 3. | Where the buyer acquires the goods in return for the immediate payment of the price for the goods sold at the time of sale of goods; |
| 4. | Where a contract is entered into with a State agency or another local government; |
| 5. | Where it is unnecessary to prepare a contract in light of the nature of the contract, such as a contract for supply of electricity, gas, or water. |
| (2) | "Cases prescribed by Presidential Decree, such as a natural disaster" in Article 14 (2) of the Act means cases where an information processing system is unavailable due to a natural disaster, computer problem, or any other unavoidable cause. <Newly Inserted on Feb. 5, 2014> |
[This Article Wholly Amended on Jul. 26, 2010]
[Title Amended on Feb. 5, 2014]
| Article 51 (Guarantee of Performance of Contract) |
| (1) | If the head of a local government or a contracting officer intends to enter into a contract for a construction project, he or she shall require the other party to the contract to guarantee the performance of the contract by choosing any of the following methods: Provided, That if it is deemed necessary in light of the characteristics of a contract for a construction project, the head of a local government or a contracting officer may limit the methods to those provided in subparagraph 2, and in cases of a contract for a construction project under Article 42 (1) 1 or Chapter VI or IX, he or she shall require a guarantee of the performance of the contract by the methods provided in subparagraph 2: <Amended on Jul. 26, 2010; Jul. 14, 2020; Mar. 7, 2023> |
| 1. | Payment of at least 10/100 of the contract price as a contract deposit: Provided, That if the Minister of the Interior and Safety determines and publicly notifies a specific period to overcome economic crisis in the State or in the relevant region resulting from a disaster, economic recession, mass unemployment, etc. referred to in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety, it means payment of at least 5/100 of the contract price as a contract deposit; |
| 2. | Submission of a construction bond without paying a contract deposit [in cases of a contract for a construction project, if an institution which has guaranteed the fulfillment of contractual obligations for the relevant construction project fails to perform the contractual obligations on behalf of the other party to the contract, the construction bond shall ensure the payment of at least 40/100 of the contract price (referring to 50/100 of the contract price in cases of a contract for a construction project awarded for less than 70/100 of the budget price)]: Provided, That if the Minister of the Interior and Safety determines and publicly notifies a specific period to overcome economic crisis in the State or in the relevant region resulting from a disaster, economic recession, mass unemployment, etc. referred to in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety, it means submission of a construction bond ensuring the payment of at least 20/100 of the contract price (30/100 of the contract price for a contract for a construction project awarded for less than 70/100 of the budget price). |
| (2) | If the other party to a contract requests a change of the methods for guaranteeing performance of the contract for which performance has been guaranteed under the main clause of paragraph (1), the head of a local government or the contracting officer may allow such change only once: Provided, That if the contract deposit is expected to be recorded as revenue of the local government under Article 54, he or she shall not allow a change of the methods for guaranteeing the performance of the contract. <Amended on Jul. 26, 2010; Sep. 13, 2016> |
| (3) | Deleted. <Jul. 26, 2010> |
| (4) | The Minister of the Interior and Safety may determine matters necessary for submitting a construction bond, etc. under paragraph (1) 2. <Amended on Jul. 26, 2010; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (5) | If the head of a local government or a contracting officer enters into a contract for goods, services, etc., excluding construction works, he or she shall require the payment of at least 10/100 of the contract price as a contract deposit: Provided, That if the Minister of the Interior and Safety determines and publicly notifies a specific period to overcome economic crisis in the State or in the relevant region resulting from a disaster, economic recession, mass unemployment, etc. referred to in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety, he or she shall require the payment of at least 5/100 of the contract price as a contract deposit. <Amended on Jul. 26, 2010; Jul. 14, 2020> |
| (6) | Notwithstanding the main clause of paragraph (5), if agreement is reached with the other party to a contract, the head of a local government or a contracting officer may apply paragraph (1) 2 mutatis mutandis. <Newly Inserted on Jul. 14, 2020> |
| (7) | If a contract is to be performed in installments under a unit-price contract, the contract deposit shall be paid in an amount of at least 10/100 of the amount computed by multiplying the maximum of the expected quantity for each installment by the unit price, notwithstanding paragraphs (5) and (6). <Amended on Jul. 26, 2010; Jul. 14, 2020> |
| (8) | In cases of a long-term continuous contract, the performance of the contract shall be guaranteed under paragraph (1) or (5) on the basis of the amount of total construction works, total manufacturing, etc. specified in the clauses added to the first contract. In such cases, the relevant contract deposit shall be deemed the contract deposit for total construction works, total manufacturing, etc.; and when an annual contract is completed, 10/100 of the annual contract price (in cases falling under paragraph (1) 1 or 2, or the proviso of paragraph (5), referring to the ratio prescribed in the relevant provision) for which performance is completed shall be returned out of the original contract deposit. <Amended on Jul. 26, 2010; Jul. 14, 2020> |
| Article 52 (Payment Methods of Contract Deposit) |
| (1) | A contract deposit shall be paid in cash or by a letter of guarantee, etc. specified in the subparagraphs of Article 37 (2). |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 53 (Exemption from Contract Deposit) |
| (1) | In any of the following cases, a contract deposit may be exempted pursuant to the proviso of Article 15 (1) of the Act: <Amended on Sep. 15, 2011; Jan. 5, 2021> |
| 1. | Where a contract is entered into with a person specified in Article 37 (3) 1 through 5; |
| 2. | Where the contract price to be entered into is not more than 50 million won; |
| 3. | Where it is deemed improper to collect a contract deposit, according to contractual customs generally accepted as fair and reasonable; |
| 4. | Where it is intended to purchase parts for foreign-funded facilities, machines, or equipment already introduced and it is impracticable to purchase the parts from any person, other than the relevant supplier. |
| (2) | If a ground for recording a contract deposit as revenues of a local government arises under Article 15 (3) of the Act with respect to a person exempted from paying a contract deposit under paragraph (1), the head of a local government or a contracting officer shall require him or her to submit a document promising the payment of an amount equivalent to the contract deposit (hereafter in this Article referred to as "letter of comfort"): Provided, That the submission of a letter of comfort may be omitted in cases falling under paragraph (1) 3. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 54 (Measures for Recording Contract Deposit as Revenues of Local Government) |
| (1) | If the other party to a contract fails to perform his or her contractual obligations without good cause, the head of a local government or a contracting officer shall record the contract deposit under Article 51 as revenues of the local government in accordance with Article 15 (3) of the Act: Provided, That in any of the following cases, the amount excluding the amounts prescribed in the relevant subparagraph shall be recorded as revenues of the local government: <Amended on Mar. 7, 2023> |
| 1. | Where a contract for construction works, goods, services, etc. that can be divided in nature (excluding a unit-price contract under Article 25 of the Act) is taken over, managed, or used after undergoing an inspection on the portion already completed or supplied: An amount equivalent to the portion already completed or supplied out of the initial contract deposit; |
| 2. | Where a unit-price contract under Article 25 of the Act is performed in installments: An amount equivalent to the portion whose performance is completed out of the initial contract deposit. |
| (2) | Paragraph (1) shall apply mutatis mutandis to cases where the other party to a contract fails to enter into a second or subsequent annual contract for construction works, manufacturing, etc. under the latter part of Article 78 (2) and paragraph (3) of that Article. |
| (3) | When a contract deposit is recorded as revenues of a local government pursuant to paragraphs (1) and (2), it shall not be offset with the unpaid amount regarding the completed portion: Provided, That this shall not apply where the payment of a contract deposit is exempted under Article 53. |
| (4) | Article 38 shall apply mutatis mutandis to recording a contract deposit as revenues of a local government. |
| (5) | Deleted. <Mar. 7, 2023> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 55 (Purchase of Non-Life Insurance) |
| (1) | If deemed necessary when entering into a contract, the head of a local government or a contracting officer may purchase insurance or join a mutual aid association that guarantees compensation for damage regarding the subject matter, etc. of the relevant contract or may require the other party to the contract to purchase such insurance or join such mutual aid association. <Amended on Jul. 24, 2018> |
| (2) | The Minister of the Interior and Safety may determine matters necessary for purchasing an insurance or joining a mutual aid association to guarantee compensation for damage under paragraph (1). <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jul. 24, 2018> |
[This Article Wholly Amended on Jul. 26, 2010]
| (1) | "Contract prescribed by Presidential Decree" in the proviso of Article 16 (1) of the Act means any of the following contracts: <Amended on May 22, 2014; Sep. 13, 2016> |
| 3. | A contract for work over which supervision specified in the main clause of Article 16 (1) of the Act is impracticable because expert knowledge or skill is required or due to other unavoidable reasons. |
| (2) | In order to prevent shoddy construction under a contract for a construction project awarded at an amount of less than 70/100 of the budget price, the head of a local government or a contracting officer may increase the number of supervisory public officials (referring to the number of construction project management engineers or supervisors under the Construction Technology Promotion Act, etc. in cases of contracts for construction projects, among the contracts referred to in paragraph (1)) by not more than 50/100 of the standard number of placements. <Amended on May 22, 2014; Dec. 11, 2018> |
| (3) | Supervisory expenses or surveillance expenses additionally incurred pursuant to paragraph (2) may be covered with the successful bid difference (referring to the difference between the budget price and the successful bid price) out of the budget for the relevant construction project. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 57 (Qualifications of Resident Supervisors) |
| (1) | The representative of residents under Article 16 (2) of the Act shall be the head of the Tong/Ri who has jurisdiction over a construction site subject to supervision under Article 60, who shall be appointed by the head of a local government or a contracting officer. |
| (2) | The qualifications for those who may be recommended by the representative of residents under Article 16 (2) of the Act shall be as follows: |
| 1. | A person who holds a national technical qualification certificate corresponding to the type of business related to the construction project subject to supervision; |
| 2. | A person who has engaged in the field administration, etc. in the type of business related to the construction project subject to supervision or engaged in surveillance or supervision duties for at least one year; |
| 4. | A person recommended by a construction-related organization or construction-related academic society established with authorization, permission, etc. from the competent authority under relevant statutes or regulations; |
| 5. | A Saemaul leader, the head of the women’s association, etc. of the Dong or Ri where the construction site subject to supervision is located, who holds representativeness thereof and has knowledge in the field relevant to the construction project. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 58 (Dismissal of Commission of Resident Supervisor) |
The head of a local government or a contracting officer shall immediately dismiss any of the following persons, from among persons appointed as resident supervisors under Article 16 (2) of the Act (hereinafter referred to as "resident supervisor"): | 1. | A person who is provided with or requests money, valuables, or entertainments in connection with supervision of a construction project; |
| 2. | A person who is deemed unfit for supervision of a construction project by being negligent or unfaithful in performing the duties of a resident supervisor; |
| 3. | A person who interferes with the performance of duties during supervision or inspection; |
| 4. | A person who falsely prepares documents related to supervision such as construction supervision logs; |
| 5. | A person whom the head of the local government deems unfit for supervision of a construction project. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 59 (Payment of Actual Expenses Incurred by Resident Supervisors in Performance of Supervision) |
If a resident supervisor is paid actual expenses incurred in the performance of supervision under Article 16 (4) of the Act, the criteria, etc. for paying actual expenses may be prescribed by ordinance of the relevant local government. [This Article Wholly Amended on Jul. 26, 2010]
| Article 60 (Construction Projects Subject to Supervision by Resident Supervisors) |
| (1) | Construction projects subject to supervision under Article 16 (5) of the Act shall be any of the following construction projects, which is closely related to the livelihood of residents: <Amended on Apr. 10, 2012; Sep. 13, 2016> |
| 1. | Expanding or paving access roads to a village; |
| 3. | Installing simple waterworks and sewerage; |
| 5. | Installing sidewalk blocks; |
| 6. | Installing urban or Gun planning roads; |
| 7. | Community hall construction projects; |
| 8. | Public toilet construction projects; |
| 9. | Flood recovery projects deemed by the head of a local government as having a close relationship with the livelihood of residents, such as those related to river, roads, and waterworks and sewerage; |
| 10. | Park construction projects; |
| 11. | Other construction projects deemed necessary by the head of a local government. |
| (2) | A construction project under paragraph (1) shall have an estimated price of at least 30 million won. <Amended on Sep. 13, 2016> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 61 (Scope of Supervision by Resident Supervisors) |
| 1. | Delivering the suggestions of residents to the local government in connection with the relevant construction project; |
| 2. | Recommending corrections against illegal or improper conduct in the process of executing construction works; |
| 3. | Supervising whether the construction works are executed as designed. |
| (2) | If the details of a recommendation for corrections made by a resident supervisor under paragraph (1) violate relevant statutes, regulations, etc. or are inappropriate, or if unavoidable reasons exist, the head of a local government or a contracting officer need not reflect the details thereof. In such cases, he or she shall notify in writing the relevant resident supervisor thereof, specifying the reasons therefor. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 62 (Report on Supervision by Resident Supervisor) |
A resident supervisor shall file a report on supervision under Article 16 (6) of the Act with the head of a local government or a contracting officer not later than the date of completion inspection of the construction project. [This Article Wholly Amended on Jul. 26, 2010]
| Article 63 (Education of Resident Supervisor) |
The head of a local government or a contracting officer may provide education to resident supervisors to improve their qualities and expertise before commencing a construction project.
[This Article Wholly Amended on Jul. 26, 2010]
| (1) | Any inspection under Article 17 (1) of the Act shall be completed within 14 days from the date the full performance of the relevant contract is notified from the other party to the contract (or seven days from the date the full performance of the relevant contract is notified from the other party to the contract, if the Minister of the Interior and Safety determines and publicly notifies a specific period to overcome economic crisis in the State or in the relevant region resulting from a disaster, economic recession, mass unemployment, etc. referred to in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety): Provided, That the period of such inspection may be extended by up to seven days (or three days, if such inspection needs to be completed within seven days pursuant to the main clause), as determined by the Minister of the Interior and Safety. <Amended on Jul. 14, 2020> |
| (2) | If an inspection under paragraph (1) is conducted on a service contract for survey design, an inspection shall be also conducted to ascertain whether the total project cost of the project subject to the survey design has been properly calculated by the other party to the service contract. |
| (3) | If contracts have been concluded separately for the schematic design (including matters regarding a feasibility study; hereinafter the same shall apply) and the working design, when an inspection is conducted on the performance of working design services under paragraph (1), comparison between the total project costs based on the schematic design documents and those based on the working design documents shall be made to find whether the total project cost of the project subject to the working design is appropriate. In such cases, if there is any difference between the total project costs based on the schematic design documents and those based on the working design documents, the other party to the service contract for the working design shall be required to submit data explaining the reasons therefor. |
| (4) | If an inspection is not completed within the period specified in paragraph (1) due to force majeure, such as natural disaster, the inspection shall be completed within three days from the date when such grounds cease to exist. |
| (5) | If the head of a local government, a contracting officer, or a person delegated with inspections pursuant to Article 17 (1) of the Act finds that all or part of the performance of the terms and conditions of the contract by the other party to the contract violates the contract or is improper, he or she shall issue a necessary corrective order without delay. In such cases, the period prescribed in paragraph (1) shall be calculated from the date the other party to the contract notifies the completion of the correction. |
| (6) | The inspection on progress which is conducted at the time of making an interim payment under Article 67 (3) may be substituted by the confirmation of a report on supervision prepared by a person who conducts supervision under Article 16 of the Act: Provided, That one out of every three of those inspections shall be the inspection provided in Article 17 of the Act. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 64-2 (Goods Subject to Exemption from Inspection) |
The goods that may be exempted from inspection under Article 17 (2) of the Act shall be as follows: Provided, That an inspection under Article 17 (1) of the Act shall be conducted if it is necessary for the protection of life, safety, and health of citizens or if it is necessary to examine the quality of goods due to the use of defective materials, the occurrence of multiple defects, the relevant institution’s order to compensate defects, etc.: <Amended on Jul. 28, 2016; Sep. 13, 2016; Jan. 26, 2017; Sep. 29, 2020> | 3. | A product manufactured by a person who meets the quality management standards determined and publicly notified by the Administrator of the Public Procurement Service under Article 18 of the Government Procurement Act. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 65 (Omission of Preparation of Inspection Report) |
"Amount prescribed by Presidential Decree" in the proviso of Article 17 (3) of the Act means 30 million won in the contract price. <Amended on Feb. 5, 2014> [This Article Wholly Amended on Jul. 26, 2010]
| Article 66 (Concurrent Performance of Supervision and Inspection) |
| (1) | No person shall concurrently perform the supervision under Article 56 and the inspection under Article 64: Provided, That this shall not apply to any of the following cases: |
| 1. | Where it is significantly impracticable to require any person other than a person who performs supervision to conduct inspections, where such inspections require a special technique; |
| 2. | Where it is hard to confirm performance of a contract unless an inspection is conducted without delay after the relevant contract is performed, such as a construction project for maintenance or repair; |
| 3. | Where the contract is for the manufacture of goods or for a construction project, the contract price of which is not more than 300 million won; |
| 4. | Where the contract is for a construction project specified in Article 56 (1) 1; |
| 5. | Where the inspection on progress is substituted with the confirmation of a report on supervision under the main clause of Article 64 (6). |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 67 (Payment of Price) |
| (1) | The price for a contract that creates an encumbrance to a local government under Article 18 (2) of the Act shall be paid within five days from the date of receiving requests from the other party to the contract after an inspection under Article 64 is completed (or three days from the date of receiving a request from the other party to the contract if the Minister of the Interior and Safety determines and publicly notifies a specific period to overcome economic crisis in the State or in the relevant region resulting from a disaster, economic recession, mass unemployment, etc. referred to in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety; holidays and Saturdays shall be excluded; hereafter in this Article the same shall apply). In such cases, a special agreement may be entered into upon agreement by the parties to the contract, to extend the deadline for the payment of such price by up to five days. <Amended on Jan. 5, 2016; Jul. 14, 2020> |
| (2) | If it is impossible to pay a price by the deadline for payment due to a natural disaster or any other force majeure event, the price shall be paid within three days from the date such event ceases to exist. |
| (3) | If the price for the portion already completed or supplied under Article 18 of the Act is paid, such price shall be paid once at least every 30 days, in consideration of the contract quantity, the prospect of performing the contract, the period of performance, etc., notwithstanding paragraph (1). |
| (4) | When the price is paid under paragraph (3), the other party to the contract may be required to submit an invoice no later than the date when the inspection under Article 64 is completed, and the price shall be finalized according to the details of the inspection and be paid within five days from the date of completion of the inspection: Provided, That if the other party to the contract submits an invoice after the date of the completion of inspection, payment shall be made within five days from the date such invoice is received. <Amended on Jan. 15, 2016> |
| (5) | If the head of a local government or a contracting officer finds that an invoice submitted under paragraph (1) or (4) is wholly or partially improper, he or she may return the invoice to the other party to the contract, specifying the reasons for returning it. In such cases, the period from the date of return to the date another invoice is submitted shall not be included in the period for payment specified in paragraph (1) or (4). |
| (6) | The head of a local government or a contracting officer may include in a contract the terms and conditions to the effect that, if the other party to a contract fails to submit an invoice and to pay wages to his or her employee for a considerable period, the head of a local government or a contracting officer may pay wages directly to such employee out of the contract price, upon the request of the relevant employee. <Newly Inserted on Sep. 15, 2011> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 68 (Interest on Delay in Payment of Price) |
Upon receiving an invoice, if the head of a local government or a contracting officer fails to pay the price by the payment deadline specified in Article 67 (or within 20 days from the date the relevant budget is allocated pursuant to the Local Finance Act after the commencement of the following fiscal year in cases of entering into a contract creating an encumbrance to the local government), he or she shall pay interest calculated by the following formula pursuant to Article 18 (2) of the Act: <Amended on Nov. 29, 2016> (The number of days from the date following the payment deadline to the payment date x the outstanding amount x an overdue interest rate applied at the time of loan of general funds of a treasury designated by the head of a local government pursuant to Article 38 of the Local Accounting Act) [This Article Wholly Amended on Jul. 26, 2010]
| Article 69 (Warranty Period) |
| (1) | The warranty period under a contract for construction works under Article 20 (1) of the Act shall be the period prescribed by Ordinance of the Ministry of the Interior and Safety, within the range of not less than one year but not more than 10 years from the date the subject matter of the contract is accepted in its entirety or the date the final inspection is completed under Article 64 (1), whichever earlier (referring to the date of accepting part of the subject matter of the contract or the date the management or the use of the subject matter begins according to the public announcement, whichever earlier, where the subject matter of the contract for the construction project has been managed or used after the partial completion of the contract for the construction project): Provided, That this shall not apply to cases prescribed by Ordinance of the Ministry of the Interior and Safety where the repair of defects is unnecessary in light of the nature of construction works. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jul. 14, 2020> |
| (2) | The warranty period under a contract for goods, services, etc. under Article 20 (2) of the Act shall be the period for which a warranty for defect is necessary from the date the subject matter of the contract is accepted in its entirety or the date the final inspection is completed under Article 64 (1), whichever earlier. |
| (3) | The warranty period under a long-term continuous contract shall be the warranty period under paragraphs (1) and (2) for each annual contract: Provided, That if the warranty liability is not divisible by annual contract, it shall be determined with regard to the entire subject matter of the contract at the time of entering into the first annual contract. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 70 (Inspections of Defects) |
| (1) | The head of a local government or a contracting officer shall inspect defects on a regular basis, at least twice a year during the warranty period prescribed in Article 69, or shall require public officials under his or her jurisdiction to conduct such inspection. |
| (2) | In any of the following cases, the head of a local government or a contracting officer shall request a specialized institution to conduct necessary inspections: <Amended on Nov. 29, 2016; Jan. 16, 2018> |
| 1. | Where specialized knowledge or skills are required for the inspection of defects under paragraph (1); |
| 2. | Where it takes specialized knowledge or skills to calculate the amount necessary for repairing defects under Article 71-3; |
| (3) | A person who inspects defects pursuant to paragraph (1) or (2) shall prepare a defect inspection report: Provided, That if the contract price does not exceed 30 million won, preparation of a defect inspection report may be omitted. |
[This Article Wholly Amended on Jul. 26, 2010]
| (1) | A defect bond under Article 21 of the Act shall be at least 2/100 but not more than 10/100 of the contract price, as prescribed by Ordinance of the Ministry of the Interior and Safety: Provided, That in cases prescribed by Ordinance of the Ministry of the Interior and Safety, where it is not necessary to repair defects in light of the nature of a contract, a defect bond need not be paid. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | The head of a local government or a contracting officer shall require a defect bond under paragraph (1) within the period from the completion of an inspection under Article 64 (1) to the payment of the contract price, and shall retain the deposit for the warranty period under Article 69. |
| (3) | In cases of a long-term continuous contract, it shall be required to pay a defect bond under paragraphs (1) and (2) before the price is paid by annual contract: Provided, That if the warranty liability is not divisible by annual contract, it shall be required to pay the defect bond after completing an inspection under Article 64 (1) on the entire subject matter. |
| (4) | Cases where a person may be exempted from paying a defect bond under the proviso of Article 21 (1) of the Act shall be as follows: |
| 1. | Where a contract is entered into under Article 25 (1) 7 (b); |
| 2. | Where a contract is entered into with a person specified in Article 37 (3) 1 through 5. |
| (5) | Articles 37 (2) and (4) and 38 shall apply mutatis mutandis to paying a defect bond and recording such deposit as revenues of a local government. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 71-2 (Procedures for Repairing Defects) |
| (1) | If any defect occurs during the warranty period under Article 69, the head of a local government or a contracting officer shall immediately send a notice requiring the repair of defects within a specified defect repair period to the other party to the contract. |
| (2) | If the other party to a contract fails to or is unable to repair defects during the defect repair period under paragraph (1), the head of a local government or a contracting officer shall immediately revert the amount necessary for repairing defects calculated pursuant to Article 71-3 out of the defect bond to the relevant local government: Provided, That if a defect bond is kept in the form of a letter of guarantee, the head of a local government or a contracting officer may request an institution that has guaranteed the obligation to repair defects to repair defects within the limit of the guaranteed amount. |
[This Article Newly Inserted on Aug. 5, 2009]
| Article 71-3 (Calculation of Amount Necessary for Repairing Defects) |
| (1) | The head of a local government or a contracting officer shall calculate an amount necessary for repairing defects based on the amount calculated in accordance with the design documents, specifications, task orders, etc. of the relevant subject matter. |
| (2) | Where the head of a local government or a contracting officer conducts an inspection of defects to calculate the amount necessary for repairing defects pursuant to paragraph (1), he or she shall have the other party to the contract, guarantee institution, etc. be present during the inspection and express opinions. <Amended on Jan. 5, 2021> |
[This Article Newly Inserted on Aug. 5, 2009]
| Article 72 (Direct Use of Defect Bonds) |
| (1) | If it is intended to directly use a defect bond for repairing relevant defects pursuant to Article 21 (4) of the Act, the defect bond shall be managed separately in accounts for transactions other than revenues and expenditures without necessarily transferring it into a revenue account. |
| (2) | Procedures for directly using a defect bond under paragraph (1) shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 73 (Adjustment of Contract Price According to Price Fluctuation) |
| (1) | If 90 days elapse after entering into a contract that creates an encumbrance to a local government under Article 22 (1) of the Act (referring to the first annual contract in cases of a long-term continuing construction project or long-term manufacture of goods, etc.) and at the same time it falls under any of the following cases, the contract price (referring to the amount of total construction works or total manufacturing, etc. specified in the clauses added to the first annual contract in cases of a long-term continuing construction project or long-term manufacture of goods, etc.; hereafter in this Chapter the same shall apply) shall be adjusted as prescribed by Ordinance of the Ministry of the Interior and Safety; in such cases, the contract price shall not be adjusted again within 90 days from the reference date of adjustment (referring to the date on which the cause of adjustment arises; hereafter in this Article the same shall apply):<Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jun. 25, 2019> |
| 1. | Where there is an increase or decrease in the item adjustment rate by not less than 3/100, as computed in accordance with a formula prescribed by Ordinance of the Ministry of the Interior and Safety, as of the tender date (referring to the date of conclusion of a contract in cases of a negotiated contract or the immediately preceding reference date of adjustment in cases of adjustment of a contract price for a second or subsequent annual contract; hereafter in this paragraph and paragraph (6) the same shall apply); |
| 2. | Where there is an increase or decrease by not less than 3/100 in the index adjustment rate, as computed by a formula prescribed by Ordinance of the Ministry of the Interior and Safety, as of the tender date. |
| (2) | If the head of a local government or a contracting officer adjusts a contract price pursuant to paragraph (1), one of the methods provided in the subparagraphs of paragraph (1) shall apply to the same contract, and the contract price shall be adjusted by a method prescribed in subparagraph 1 of that paragraph except where the methods provided in paragraph (1) 2 is specified in the contract upon request of the other party to the contract. <Amended on Nov. 20, 2013> |
| (3) | When an advance payment has been made to the other party of the relevant contract under Article 44 of the Enforcement Decree of the Local Accounting Act, the amount calculated as prescribed by Ordinance of the Ministry of the Interior and Safety shall be deducted from the increased amount calculated pursuant to paragraph (1). <Amended on Mar. 23, 2013; Nov. 19, 2014; Nov. 29, 2016; Jul. 26, 2017> |
| (4) | If the head of a local government or a contracting officer purchases goods for which the highest selling price is publicly notified pursuant to relevant statutes or regulations or if it is impracticable to procure goods by applying paragraph (1), he or she may determine the adjustment of contract prices differently from paragraph (1) when entering into a contract. |
| (5) | For purposes of applying paragraph (1), if it is deemed impracticable to perform a contract unless the contract price is adjusted during the relevant period of restriction on adjustment due to a natural disaster or a rapid increase in the prices of raw materials, the contract price may be adjusted within 90 days from the date of conclusion of the contract or the immediately preceding reference date of adjustment, notwithstanding paragraph (1). |
| (6) | Notwithstanding the subparagraphs of paragraph (1), when the rate of increase or decrease in the prices of the relevant material as of the tender date is at least 15/100 due to changes in the price of materials of a specific standard (only applicable to materials whose costs exceed 1/100 of the sum of the material costs, labor costs, and expenses constituting the construction costs) in cases of a contract for a construction project, the contract price shall be adjusted limited to the relevant materials. <Amended on Sep. 15, 2011> |
| (7) | Where the requirements for adjusting contract prices under paragraph (1) are met due to changes in exchange rates, the head of a local government or a contracting officer shall adjust the contract prices. |
| (8) | Notwithstanding paragraph (1), the head of a local government or a contracting officer shall adjust the contract price for labor cost (including an amount for each item adjusted simultaneously with the adjustment of labor cost), as prescribed by Ordinance of the Ministry of the Interior and Safety, in cases of a simple labor service contract prescribed by Ordinance of the Ministry of the Interior and Safety, if the unit price of wages has changed after preparing the budget price. <Newly Inserted on Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
[Title Amended on Sep. 15, 2011]
| Article 74 (Adjustment of Contract Price Following Design Change) |
| (1) | When there is an increase or decrease in the quantity of construction works due to design changes in a contract for a construction project, the head of a local government or a contracting officer shall adjust the relevant contract price in accordance with Article 22 (1) of the Act. <Amended on Jun. 25, 2019> |
| (2) | In cases of a construction project for which bidding participants directly prepare bills of quantities under Article 15 (7) 1 (b) or subparagraph 2 of that paragraph, no increase in the contract price shall be permitted even if the terms and conditions of the contract change due to an omission, error, etc. in the part directly prepared by the bidding participants (including the part that has not been corrected by the bidding participants despite permission granted by the authority awarding the contract in cases falling under Article 15 (7) 1 (b)). <Amended on Sep. 15, 2011> |
| (3) | If a contracting officer intends to increase the contract price of a contract for a construction project awarded at less than 86/100 of the budget price under paragraph (1), and if the adjustment amount of the relevant increase is at least 10/100 of the original contract price, he or she shall obtain approval from the head of the relevant local government. |
| (4) | The adjustment of a contract price under paragraph (1) shall be made in accordance with the following criteria: |
| 1. | The unit price for the increased or decreased quantity of construction works shall remain the same as the unit price on the priced bill of quantities submitted pursuant to Article 15 (6) or (7) (hereinafter referred to as “agreed unit price”): Provided, That if the agreed unit price is greater than the budget unit price under Article 10 (hereinafter referred to as “budget unit price”) and the quantity increases, the unit price applicable to the increased quantity shall be the budget unit price; |
| 2. | The unit price for a new item with no agreed unit price shall be computed by multiplying the unit price calculated as at the time of design change by the winning bid ratio; |
| 3. | Where a local government requests a design change (including cases occurring due to reasons not attributable to the other party to a contract), the unit price in the increased quantity or the unit price for a new item shall be determined through consultation between the parties to a contract within the scope of the unit price calculated as at the time of design change and the amount computed by multiplying the unit price by the winning bid ratio, notwithstanding subparagraphs 1 and 2; Provided, That where the parties to the contract fail to reach an agreement, the amount shall be calculated by the following formula: |
[The unit price calculated as at the time of the design change + (the unit price calculated as at the time of design change x the winning bid ratio) x 50/100]
| (5) | When design changes have been made at the request of the party to a contract in recognition of a considerable impact on saving construction costs and reducing the construction period, etc. resulting from the use of new technologies, construction methods, etc. (including technologies, construction methods, equipment and materials, etc. that have the same or higher level of functionality and effectiveness than the design by the local government; hereinafter the same shall apply), the head of a local government or a contracting officer shall adjust the contract price by reducing an amount equivalent to 30/100 of the saved amount. |
| (6) | In cases falling under paragraph (5), when there is an objection with respect to the scope and limits of new technologies and construction methods, etc., a request therefor shall be filed with the consultative committee on technology established under Article 19 of the Enforcement Decree of the Construction Technology Promotion Act (hereinafter referred to as "consultative committee on technology") for deliberation: Provided, That if no technical advisory committee has been established, deliberation shall be conducted by a local deliberation committee on construction technology established under Article 5 of the Construction Technology Promotion Act (hereinafter referred to as "local deliberation committee on construction technology"). <Amended on May 22, 2014> |
| (7) | General administrative expenses, profits, etc. regarding the increased or decreased amount of the contract price shall be calculated based on the ratio of general administrative expenses, the rate of profit, etc. specified in the priced bill of quantities submitted pursuant to Article 15 (6) or (7), but they shall not exceed the ratio prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (8) | When the head of a local government or a contracting officer increases a contract price according to paragraph (1), he or she shall examine the appropriateness and legitimacy of such adjustment, as determined by the Minister of the Interior and Safety. <Newly Inserted on Sep. 15, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (9) | Paragraphs (1) through (8) may apply mutatis mutandis where the contract price is adjusted in cases of a contract for manufacturing, services, etc. <Amended on Sep. 15, 2011> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 75 (Other Adjustment of Contract Price Following Change in Terms and Conditions of Contract) |
| (1) | Where it is necessary to adjust the contract price in a contract for a construction project, manufacturing, etc. pursuant to Article 22 (1) of the Act due to changes in the terms and conditions of the contract, such as changes in the construction period and transportation distance, other than cases falling under Articles 73 and 74, the head of a local government or a contracting officer shall adjust it within the extent not exceeding actual expenses based on such changes. <Amended on Jun. 25, 2019> |
| (2) | The head of a local government or a contracting officer shall adjust the contract price for a contract for simple labor services prescribed by Ordinance of the Ministry of the Interior and Safety, where it is deemed that the initial contract price (including cases where the contract price is adjusted under Article 73 (8)) is not sufficient to pay the minimum wage because of a change in the minimum wage amount provided in the Minimum Wage Act, in cases of meeting the requirements determined by the Minister of the Interior and Safety. <Newly Inserted on Jun. 25, 2019> |
| (3) | Article 74 (7) shall apply mutatis mutandis to cases falling under paragraphs (1) and (2). <Amended on Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 75-2 (Adjustment of Contract Price Following Extension of Contract Period) |
| (1) | "Other grounds exceeding the scope of control of the party to the contract ... prescribed by Presidential Decree" in Article 22 (2) of the Act means any of the following grounds: |
| 1. | Heavy rain, tidal waves, heavy snow, cold wave, drought, heat wave, yellow dust, algal bloom, tide, volcanic activity, and other natural phenomena equivalent thereto; |
| 2. | Collapse, explosion, chemical accidents, environmental pollution incidents, paralysis of the national infrastructure, such as energy, communications, traffic, finance, medical services, and waterworks, the spread of infectious diseases under the Infectious Disease Control and Prevention Act or contagious animal diseases under the Act on the Prevention of Contagious Animal Diseases, and the implementation of emergency reduction measures for high fine dust concentration under the Special Act on the Reduction and Management of Fine Dust; |
| 3. | A war, incident, terrorism, or riot; |
| 4. | Other grounds determined and publicly notified by the Minister of the Interior and Safety as exceeding the scope of control of the other party to the contract. |
[This Article Newly Inserted on Jun. 25, 2019]
| Article 76 (Contracting Before Beginning of Fiscal Year) |
If the head of a local government or a contracting officer intends to execute a contract before the beginning of a fiscal year or the allocation of budget pursuant to Article 23 of the Act, he or she shall ensure that the contract takes effect after the commencement date of the fiscal year or the allocation of budget. [This Article Wholly Amended on Jul. 26, 2010]
| Article 77 (Prohibition of Division of Contract for Construction Project) |
| (1) | The head of a local government or a contracting officer shall not divide a construction project for identical structures determined by the Minister of the Interior and Safety or a single construction project with the entire project details fixed by design documents, etc. to enter into partial contracts based on construction periods or the quantity of construction works: Provided, That this shall not apply to any of the following construction projects: <Amended on Mar. 23, 2013; Nov. 19, 2014; Nov. 24, 2014; Aug. 19, 2015; Jul. 26, 2017> |
| 1. | A construction project that may be ordered separately from construction projects of other business types under other statutes or regulations; |
| 2. | A construction project where dividing sections or structures into appropriate sizes for the execution of construction works delivers efficiency in light of the nature, scale, etc. of the construction project; |
| 3. | Any of the following construction projects where breaking down of types of work does not impede either an assessment of where the defect liability lies or the management of quality, safety, work process, etc. in light of the nature of a construction project, and where it is deemed efficient to break down the types of work: |
| (a) | A construction project, the design documents of which are formulated separately; |
| (b) | A construction project where the subject matter, period, and place of the execution of construction works and other relevant matters are clearly distinguished for each type of construction projects in light of the nature of a construction project. |
| (2) | The head of a local government or a contracting officer shall examine whether it is possible to enter into divided or separate contracts under the subparagraphs of paragraph (1) from the planning phase of a project, such as budgeting and schematic designing. <Newly Inserted on Nov. 24, 2014> |
| (3) | No project falling under the subparagraphs of paragraph (1) shall be divided based on construction periods or the quantity of construction works to enter into a negotiated contract under the subparagraphs of Article 30 (1). <Newly Inserted on Nov. 24, 2014> |
| (4) | Where a local government enter into divided contracts prescribed in paragraph (1) 2, a Si/Gun/Gu shall report to the Mayor/Do Governor, and a City/Do shall report to the Minister of the Interior and Safety, respectively. <Amended on Mar. 23, 2013; Nov. 19, 2014; Nov. 24, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 78 (Long-Term Continuous Contracts and Ongoing Expenditure Contracts) |
| (1) | Where it is intended to enter into any of the following long-term continuous contracts under Article 24 of the Act, a unit price contract may be entered into with approval from the head of the relevant local government: <Amended on Aug. 19, 2015> |
| 1. | A service contract for transportation, storage, testing, research, land survey, management of facilities, etc. or a lease contract; |
| 2. | A contract for supply of electricity, gas, water, etc.; |
| 3. | A contract for maintenance and repair of equipment, an information system, and software. |
| (2) | In cases of a long-term continuing construction project, the contract therefor shall include added clauses specifying the total construction cost and shall require the first year's construction works to be performed within the budget of the relevant year. In such cases, additional clauses shall also provide to the effect that contracts for the second and subsequent year’s construction works shall be executed within the scope of the total construction cost specified in such additional clauses (referring to the adjusted total construction cost if there is an adjustment to the contract price under Articles 73 through 75) minus the amount for which contracts are already executed. |
| (3) | Paragraph (2) shall apply mutatis mutandis to the methods for entering into a contract for the long-term manufacture, etc. of goods and a project for establishing an information system (including a master contract encompassing projects for establishing, operating, maintaining, and repairing an information system). <Amended on Aug. 19, 2015> |
| (4) | The contract price for each annual contract under paragraphs (2) and (3) shall be determined according to the agreed unit price for the total construction works or for total manufacture, etc. |
| (5) | With respect to construction projects covered by the budget for continuing expenditure under Article 42 of the Local Finance Act, a contract shall be entered into, specifying the matters regarding the entire construction project and annual construction projects. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 78-2 (Single Year Annual Contract) |
| (1) | If design documents, specifications, etc. are predetermined and if it is expected to secure the whole budget within the same fiscal year, the head of a local government or a contracting officer may enter into contracts divided based on construction periods within the scope where a successful bidder and budgets are secured. |
| (2) | If the head of a local government or a contracting officer enter into contracts divided based on construction periods under paragraph (1), the price of the successful bid shall be specified in the additional clauses to the contracts, which shall also provide to the effect that the first annual contract shall be executed within the budget and that a second or subsequent contract shall be executed within the scope of the price of the successful bid minus the price of the first annual contract. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 79 (Unit Price Contract) |
| (1) | Cases where a unit price contract may be entered into under Article 25 of the Act shall be as follows: |
| 1. | Manufacturing, purchasing, repairing, and processing goods; |
| 2. | Repairing and recovering facilities; |
| 3. | Supplying electricity, gas, and water; |
| 4. | Other contracts for supply, use, lease, sale, etc. |
| (2) | If the head of a local government or a contracting officer intends to enter into a unit price contract pursuant to paragraph (1), he or she shall determine necessary standards, procedures, etc., such as the characteristics of the subject matter of the contract, the contract quantity, and the period for performance, before calling for tenders, and shall make them available for inspection by persons who intend to participate in the tender. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 80 (Unit Price Contracts for Third Parties) |
| (1) | If a Mayor/Do Governor intends to enter into a unit price contract for a third party pursuant to Article 26 of the Act, he or she shall select the other party to the contract for goods commonly necessary in Sis/Guns/Gus located in his or her jurisdiction (hereinafter referred to as "goods in demand"): Provided, That this shall not apply to items for which the Administrator of the Public Procurement Service has already entered into a unit price contract pursuant to Article 12 (1) of the Government Procurement Act. <Amended on Sep. 29, 2020> |
| (2) | When a Mayor/Do Governor enters into a unit price contract for a third party pursuant to paragraph (1), he or she shall notify the head of a Si/Gun/Gu (the head of a Gu refers to the head of an autonomous Gu; hereinafter the same shall apply) of the status of concluding such unit price contract. |
| (3) | Upon receiving a notice from the relevant Mayor/Do Governor of the status of concluding a unit price contract for goods in demand pursuant to paragraph (2), the head of a Si/Gun/Gu shall purchase goods in demand under the unit price contract, unless there is a compelling reason not to do so. |
| (4) | Matters necessary for entering into a unit price contract for a third party pursuant to paragraph (1) shall be determined by the Mayor/Do Governor. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 81 (Rough Estimate Contract) |
| (1) | Where the head of a local government or a contracting officer intends to enter into a rough estimate contract pursuant to Article 27 of the Act, he or she shall determine an approximate price in advance. |
| (2) | Where the head of a local government intends to enter into a rough estimate contract pursuant to paragraph (1), he or she shall determine the standards, procedures, etc. necessary for cost review in consideration of the characteristics of the subject matter of the contract, the contract quantity, the period for performance, etc. before calling for tenders, and shall make them available for inspection by persons who intend to participate in the tender. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 82 (Matters Subject to Rough Estimate Contracts Including Emergency Disaster Recovery Works) |
A rough estimate contract under Article 27 (2) of the Act shall be used for the following construction works or services and shall be limited to a disaster recovery project whose approximate price is less than three billion won (600 million won in cases of construction works other than general construction works under the Framework Act on the Construction Industry) or to services whose approximate price is less than 200 million won, in cases of an emergency disaster such as flood damage requiring urgent recovery and other cases equivalent thereto: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jan. 5, 2021> | 2. | River works (including building reinforcing stone walls, retaining walls, revetment blocks, brick masonry, and levee); |
| 3. | Waterworks and sewerage works (including simplified waterworks, and replacement of conduits); |
| 4. | Projects for restoring damaged farmland for which a local government vicariously executes contracts pursuant to Article 8 of the Act; |
| 5. | Other recovery construction projects determined by the Minister of the Interior and Safety; |
| 6. | Services, such as design and surveillance related to the construction projects provided in subparagraphs 1 through 5. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 83 (Methods of Tender in Cases of Rough Estimate Contract for Emergency Disaster Recovery Works) |
In cases of a rough estimate contract under Article 82, the head of a local government or a contracting officer shall call for tenders for the surveillance on, and the execution of construction works for each disaster recovery project within seven days after entering into the design contract. [This Article Wholly Amended on Jul. 26, 2010]
| Article 84 (Methods of Determining Successful Bidder in Rough Estimate Contract for Emergency Disaster Recovery Works) |
| (1) | In a tendering procedure for a rough estimate contract under Article 82, the head of a local government or a contracting officer shall determine the successful bidder by examining bidders based on their ability to perform the contract in the order of the lowest to the higher bid prices to the extent not exceeding the approximate budget price. |
| (2) | Article 42 (2) through (4) shall apply mutatis mutandis to the examination of the ability to perform a contract under paragraph (1). |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 85 (Methods of Performing Rough Estimate Contract for Emergency Disaster Recovery Works) |
| (1) | In performing a rough estimate contract for emergency disaster recovery works, the head of a local government or a contracting officer may require the other party to the contract for services, such as designing for the relevant construction works, to prepare design documents (including final design documents; hereafter in this Article the same shall apply) categorized according to the order of priority in each work process. |
| (2) | If design documents are prepared in accordance with the order of priority in each work process under paragraph (1), the head of a local government or a contracting officer may give priority to the other party to the contract for the execution of construction works to execute the relevant construction works according the order of priority in each work process. |
| (3) | If the relevant construction works are executed with priority according to the order of priority in each work process under paragraph (2), the other party to the contract for the execution of construction works shall obtain approval in writing from the construction supervisor after consulting with the designer of the relevant construction works and an inspector and supervisor of design services on the quantity, specifications, quality, etc. of materials, equipment, etc. to be used in the construction works before executing such construction works. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 86 (Settlement of Rough Estimate Contracts) |
| (1) | Upon the complete performance of a rough estimate contract executed under Article 27 (1) of the Act, the head of a local government or a contracting officer shall settle the contract in accordance with the criteria for determining a budget price under Article 10 and the criteria, etc. under Article 81 (2). <Newly Inserted on Nov. 29, 2016> |
| (2) | As soon as a rough estimate contract under Article 27 (2) of the Act is executed and the quantities of the project are finalized based on design documents, etc., the head of a local government or a contracting officer shall without delay finalize and settle the contract price by multiplying the finalized amount by the winning bid ratio (referring to the ratio of the successful bid price or the approximate contract price to the approximate budget price) at the time of calling for a tender. <Amended on Nov. 29, 2016> |
| Article 86-2 Deleted. <Jun. 25, 2019> |
| Article 87 (Integrated Contract) |
When it is deemed necessary in executing an integrated contract under Article 28 of the Act, the Minister of the Interior and Safety may determine the methods for executing the integrated contract and other necessary matters. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> [This Article Wholly Amended on Jul. 26, 2010]
| Article 88 (Joint Contract) |
| (1) | Where the head of a local government or a contracting officer intends to enter into a joint contract under Article 29 (1) of the Act, he or she may require the members of the joint venture or consortium to jointly or severally perform the contract. In such cases, details necessary for joint contracts, such as the type of joint contracts and the limitation of liability in the execution of construction works among members of the joint venture or consortium, shall be determined by the Minister of the Interior and Safety. <Amended on Nov. 20, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | If the head of a local government or a contracting officer intends to execute a contract through a tendering procedure, he or she may use a joint contract if possible, unless a joint contract is deemed inappropriate in light of the purpose and nature of the contract. |
| (3) | Members of a joint venture or consortium shall meet all of the qualification requirements, such as license, permission, reporting, and registration, necessary to jointly perform a contract: Provided, That in cases of a consortium, each consortium member shall meet the qualification requirements necessary for performing his or her share of contractual obligations, such as license, permission, reporting, and registration. <Amended on Nov. 20, 2013> |
| (4) | No member of a joint venture or consortium shall participate in the same bidding by organizing a joint venture or consortium in duplicate. <Newly Inserted on Nov. 20, 2013> |
| (5) | In cases of a joint contract under the main clause of Article 29 (2) of the Act, business entities of the relevant region and those from outside the region among the members of the joint venture or consortium shall not be in a relationship of a business group subject to limitations on cross shareholding and its affiliate under Articles 31 and 32 of the Monopoly Regulation and Fair Trade Act. <Amended on Nov. 20, 2013; Aug. 19, 2015; Sep. 20, 2022> |
| (6) | If necessary for the invigoration, etc. of regional economies, the Minister of the Interior and Safety may determine the ratio of participation of the business entities of the relevant region where a joint contract is used under the main clause of Article 29 (2) of the Act. <Newly Inserted on Nov. 20, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (7) | If bidding participants intend to jointly participate in a complex project that requires expertise in various fields out of knowledge-based business, the heads of local governments or a contracting officer shall permit their participation, unless there is a compelling reason not to do so. <Amended on Nov. 20, 2013> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 89 (Contracts Conditioned Upon Ex Post Facto Cost Review) |
| (1) | If the head of a local government or a contracting officer is unable to determine the amount of some items that constitute the budget price before bidding, he or she may enter into a contract conditioned upon an ex post facto cost review. |
| (2) | If the head of a local government intends to enter into a contract under paragraph (1), he or she shall determine the criteria, procedures, etc. necessary for an ex post facto cost review, in consideration of the characteristics of the subject matter of the contract, the contract quantity, the period of performance, etc. before calling for tenders and make them available for inspection by persons who intend to participate in the tender. |
| (3) | Upon the complete performance of a contract, settlement shall be made after a cost review in accordance with the criteria, etc. provided in Article 10 and paragraph (2). |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 89-2 (Contract for Construction Management Services) |
| (1) | If the head of a local government or a contracting officer deems it necessary, in consideration of the characteristics and scale of the subject matter of a contract, the period of performance, etc., when he or she enters in to a contract for a construction project under the Framework Act on the Construction Industry, he or she may execute a contract for construction management services with a person who is capable of construction management under subparagraph 8 of Article 2 of the Framework Act on the Construction Industry. <Amended on Nov. 1, 2011> |
| (2) | Methods for executing a contract under paragraph (1) and other necessary matters shall be determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 90 (Liquidated Damages) |
| (1) | If the other party to a contract (excluding state agencies and local governments) delays the performance of contractual obligations, the head of a local government or a contracting officer shall require the other party to a contract to pay in cash the amount computed by multiplying the contract price (referring to an annual contract price in cases of a contract for a long-term continuing construction project, for the long-term continuing manufacture of goods, or for long-term continuing services; hereafter in this Article the same shall apply) by the rate prescribed by Ordinance of the Ministry of the Interior and Safety and the number of delayed days as liquidated damages. In such cases, if it is found that the performance of a contract has been delayed due to a cause not attributable to the other party to the contract, the number of relevant days shall not be included in the number of delayed days. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | If a portion already completed or supplied has been accepted through an inspection in cases falling under paragraph (1) (including portions managed and used without accepting them; hereafter in this Article the same shall apply), the calculation of the liquidated damages shall be based on the amount computed by subtracting the amount corresponding to such portion from the contract price. In such cases, the acceptance of a portion already completed or supplied shall be limited to the acceptance of a completed portion of a construction project, goods, or services, etc., which is divisible in light of the nature thereof. <Amended on Sep. 9, 1999> |
| (3) | The liquidated damages to be paid under paragraphs (1) and (2) shall be limited to 30/100 of the contract price (if a portion already completed or supplied has been accepted through an inspection pursuant to paragraph (2), referring to the amount computed by subtracting the amount corresponding to such portion from the contract price). <Newly Inserted on Jun. 25, 2019> |
| (4) | If the head of a local government or a contracting officer enters into a joint contract under which the members of a consortium severally performs their contractual obligations under Article 88 (1) and if a member of such consortium delays the performance of his or her share of contractual obligations, thereby causing an inevitable delay to the performance of contractual obligations of the other members of the consortium, the head of the local government or the contracting officer shall require the member directly causing the delay to pay liquidated damages. In such cases, liquidated damages shall be calculated based on the total contract price minus the contract price of members who do not cause delay in the performance of the relevant contract. <Newly Inserted on Nov. 29, 2016; Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 91 (Notice of Cancellation and Termination of Contract) |
If the head of a local government or a contracting officer revokes the determination of a successful bidder or cancels or terminates a contract pursuant to Article 30-2 of the Act, he or she shall notify the successful bidder and the other party to the contract of the reasons therefor. [This Article Wholly Amended on Feb. 5, 2014]
| Article 92 (Restrictions on Qualifications for Participation of Unjust Enterprisers in Tendering) |
| 1. | The committee on the comprehensive evaluation of bidders established under Article 42-3 (4); |
| 2. | The proposal evaluation committee established under Article 43 (9). |
| (2) | "Persons prescribed by Presidential Decree" in the provisions, with the exception of the items, of Article 31 (1) 9 of the Act means the following persons: <Amended on Dec. 8, 2020; Sep. 20, 2022> |
| 1. | Any of the following persons, who is likely to hinder fair competition by forging or falsifying the documents relevant to tendering or contract or by interfering tendering or contracting procedures: |
| (a) | A person who forges or falsifies documents relevant to tendering (including cases of receiving written estimates through a designated information processing system under Article 30) or contract [including a certificate defined in subparagraph 6 of Article 2 of the Digital Signature Act (limited to the certificate from which the signer's real name can be verified) if a tenderer submits a tender through a designated information processing system under Article 39 (1)], uses such documents improperly, or submits false documents; |
| (b) | A person who submits an invalid tender by intent; |
| (c) | Deleted; <Sep. 20, 2022> |
| (d) | A person who interferes with other bidders' participation in bidding, or interferes with the conclusion or performance of a contract by a successful bidder; |
| (e) | A person who fails to submit all or part of documents necessary for examination of abilities to perform a contract under the main clause, with the exception of the subparagraphs, of Article 42 (1) without good cause or withdraws from examination after submitting documents before a successful bidder is determined; |
| (f) | A person who fails to submit all or part of documents necessary for evaluation in the course of determining a successful bidder under Article 42-3 or withdraws from evaluation after submitting documents before a successful bidder is determined, without good cause; |
| (g) | A person who fails to submit final design documents by the deadline without good cause, after being selected as a person qualified to provide final design, in cases of determining a successful bidder in turnkey tendering under Article 100; |
| 2. | Any of the following persons, who is likely to impede proper performance of a contract by failing to conduct or interfering with the acts relevant to concluding or performing the contract without good cause: |
| (a) | A person who fails to enter into a contract without good cause after being selected as a successful bidder, or a person who has failed to perform a contract (including matters regarding a subcontract management plan and a plan for the implementation of labor conditions of outsourced workers submitted for the examination of the ability to perform a contract under Article 42 (2) or the evaluation under Article 42-3 (2), matters regarding joint contracts under Article 88, and matters regarding the implementation of a subcontract plan under Article 31-2 of the Framework Act on the Construction Industry) after entering into a contract or who performs a contract in violation of the terms and conditions of the contract; |
| (b) | A person who fails to appropriately calculate a survey design amount or cost accounting amount in a service contract for survey design or for cost accounting by intent or gross negligence; |
| (c) | A person who inflicts loss on an authority awarding a contract by presenting a poorly-performed feasibility study, such as demand forecast, by intent or gross negligence in connection with a service contract for a feasibility study under Article 47 of the Construction Technology Promotion Act; |
| (d) | A person who interferes with the performance of duties when exercising supervision or conducting an inspection; |
| 3. | Any of the following persons, who is deemed inappropriate to participate in bidding for violating other statutes or regulations: |
| (a) | A person who has inflicted harm on the general public because he or she was negligent in taking safety measures in the performance of a contract, or who has inflicted serious harm, such as death, on workers because he or she was negligent in taking safety or health measures under the Occupational Safety and Health Act at the workplace; |
| (b) | A person who divulges information designated as information prohibited from divulgence in advance and specified in a written contract because the head of a local government or a contracting officer deems that the divulgence of information would inflict damage on the local government, out of information learned in the course of performing a contract for establishment, maintenance, and repair of an information system defined in subparagraph 13 of Article 2 of the Electronic Government Act. |
| (3) | The head of a local government shall without delay restrict a party to a contract, a tenderer, or a person who submits a written estimate through a designated information processing system under Article 31 (1) of the Act (hereafter in this Article referred to as "other party to a contract, etc.") and falls under any subparagraph of that paragraph (hereinafter referred to as "unjust enterpriser"), from participating in tendering within the scope of not less than one month but not greater than two years (this shall not apply if the representative, manager, or other employees of the other party to the contract, etc. is subject to restriction on qualification for participation in tendering due to the performance of an act falling under any subparagraph of Article 31 (1) of the Act and if the representative of the other party to a contract, etc. has not neglected to exercise considerable attention and supervision to prevent such acts): Provided, That qualification for participation in tendering may be restricted for a person who falls under any of Article 31 (1) 3, 5, and 6 of the Act, paragraph (2) 1 (d), (e), and (g) of this Article, and subparagraph 2 (a) and (d) of that paragraph without deliberation by a contract deliberation committee established under Article 32 of the Act. <Amended on Mar. 7, 2023> |
| (4) | Detailed criteria for restrictions on qualifications for participation in tendering under paragraph (3) shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Jul. 14, 2020> |
| (5) | If a joint venture or consortium of a joint contract under Article 29 of the Act falls under any subparagraph of Article 31 (1) of the Act, paragraph (3) shall apply only to a person giving rise to the grounds for the restriction on qualification for participation in tendering. |
| (6) | If any of the following persons falls under any subparagraph of Article 31 (1) of the Act, paragraph (3) shall also apply also to persons classified as follows: |
| 1. | A corporation or organization: The representative of a corporation or organization (where there are several representatives, limited to the representative who presides over business affairs regarding the relevant bidding and contract); |
| 2. | A small and medium enterprise cooperative under the Small and Medium Enterprise Cooperatives Act: A member of the cooperative giving rise to the grounds for the restriction on qualification for participation in tendering. |
| (7) | If the head of a local government restricts qualifications for participation in tendering pursuant to paragraphs (3), (5), and (6), he or she shall publish the following matters in a designated information processing system no later than the day before the date of commencement of the period of restriction on the qualification for participation in tendering under subparagraph 2, in order to inform the heads of other local governments or contracting officers: |
| 1. | Company name (trade name), address, name (in cases of a corporation, the name of the representative and the corporate registration number), resident registration number, business registration number, license or registration number under the relevant statutes or regulations; |
| 2. | The period of restriction on the qualification for participation in tendering; |
| 3. | Specific grounds for restricting qualifications for participation in tendering; |
| 4. | If the execution of a disposition of restricting qualification for participation in tendering is suspended, the fact that the execution thereof is suspended and the suspension of the execution thereof is canceled. |
| (8) | The head of a local government shall prohibit a person whose qualifications for participation in tendering are restricted pursuant to paragraphs (3), (5) and (6) from participating in tendering conducted by the relevant local government during the period of restriction. |
| (9) | If a successful bidder is subject to the restriction on qualifications for participation in tendering pursuant to Article 31 of the Act before executing a contract, the head of a local government or a contracting officer shall not enter into a contract with such successful bidder: Provided, That this shall not apply if the other party to a long-term continuing contract is subject to restriction on qualification for participation in tendering while performing the contract and if such contract is executed on an annual basis to perform the relevant long-term continuing contract. |
| (10) | Paragraphs (8) and (9) shall also apply to the employer who uses a representative whose qualifications for participation in tendering are restricted pursuant to paragraphs (3), (5), and (6) and has such representative involved in tendering: Provided, That paragraphs (8) and (9) shall not apply to any of the following cases: <Amended on Mar. 7, 2023> |
| 1. | Where there are several representatives and the representative whose qualifications for participation in tendering are restricted is not involved in tendering; |
| 2. | Where a representative whose qualifications for participation in tendering are restricted is the president or chairperson of a small and medium enterprise cooperative under the Small and Medium Enterprise Cooperatives Act, and the relevant small and medium enterprise cooperative is irrelevant to the grounds for restriction on qualifications for participation in tendering. |
| (11) | The head of a local government shall verify the resident registration number, corporate registration number, license or registration number, etc. of bidders under relevant statutes or regulations to prevent persons whose qualifications for participation in tendering are restricted under paragraph (3), (5) or (6) from participating in tendering during the period of restriction by such means as changing the trade name or replacing the representative. |
| (13) | If necessary to restrict the qualification for participation of an unjust enterpriser in tendering, the head of a central administrative agency or the head of a local government may request the head of the local government who has delegated or entrusted contracting duties under Article 7 (1) of the Act to provide relevant data or cooperation. |
| (14) | If the head of a local government has restricted the qualification for participation in tendering under paragraphs (3), (5), and (6), he or she shall disclose the following matters in the designated information processing system by the day before the date of commencement of the period of restriction on the qualification for participation in tendering pursuant to Article 31 (7) of the Act, as prescribed by Ordinance of the Ministry of the Interior and Safety: |
| 1. | Company (trade) name, name (in cases of a corporation, the name of the representative and the corporate registration number), and business registration number; |
| 2. | Matters specified in paragraph (7) 2 through 4. |
| (15) | Matters necessary for procedures for notifying restrictions on the qualification for participation in tendering, etc. shall be prescribed by Ordinance of the Ministry of the Interior and Safety. |
[This Article Wholly Amended on Jun. 25, 2019]
| Article 92-2 (Detailed Subjects of Imposition of Penalty Surcharges and Criteria Therefor) |
| (1) | "Cases prescribed by Presidential Decree" in Article 31-2 (1) 1 of the Act means any of the following cases: Provided, That cases falling under any subparagraph of Article 31 (1) 2 and 4 through 8 of the Act, Article 92 (2) 1 (a), (b), and (d) of this Decree, and subparagraph 2 (b) through (d) and subparagraph 3 (b) of that paragraph shall be excluded herefrom: <Amended on Aug. 19, 2015; Sep. 13, 2016; Jun. 25, 2019> |
| 1. | Where there occurs a natural disaster or any other ground equivalent thereto; |
| 2. | Where there is the deterioration of domestic or overseas economic situation or a radical change in economic conditions; |
| 3. | Where there is a change made by the authority awarding the contract in regard to the major terms and conditions of the contract, an error in data furnished by the authority awarding the contract, or other reasons similar thereto; |
| 4. | Where another joint contractor, a subcontractor, or any related business entity is jointly liable for a violation; |
| 5. | Where the fairness of a tender and the propriety of performing a contract are not significantly impaired, where there is any ground in deeming that the unjust enterpriser is not likely to recommit a violation as his or her liability is minor; |
| 6. | Where the contract fails to be executed as the price is stated erroneously due to a clear simple mistake, including the cases where the price unit is erroneously written. |
| (2) | "Cases prescribed by Presidential Decree" in Article 31-2 (1) 2 of the Act means where the number of bidders is expected to be less than two. <Amended on Aug. 19, 2015> |
| (3) | The rate of a penalty surcharge imposed under Article 31-2 (1) of the Act and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety, in consideration of the penalty points for poor performance, the ratio of defects, types of misconduct, whether committed by intent or negligence, etc. for each type of conduct falling under the subparagraphs of Article 31 (1) of the Act. <Amended on Nov. 19, 2014; Jul. 26, 2017; Jun. 25, 2019> |
| (4) | "Cases prescribed by Presidential Decree" in the proviso of Article 31-2 (2) and in the proviso of Article 31-2 (3) of the Act means cases falling under paragraph (1) 1 or 3, where the contract price (referring to an estimated price if no contract is executed) is less than 100 million won in cases of a contract for construction works or less than 50 million won in cases of a contract for services or goods. <Newly Inserted on Jan. 15, 2016> |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-3 (Imposition and Payment of Penalty Surcharges) |
| (1) | If the head of a local government intends to impose a penalty surcharge on a person under Article 31-2 of the Act, he or she shall give a written notice specifying the type of violation and the amount of the penalty surcharge. |
| (2) | Upon receipt of a notice given under paragraph (1), a person shall pay the penalty surcharge to the receiving agency designated by the imposing authority within 60 days from the date on which the notice is delivered: Provided, That if it is impossible to pay a penalty surcharge within the specified period due to a natural disaster or any other unavoidable reasons, the penalty surcharge shall be paid within 30 days from the date on which such reason ceases to exist. |
| (3) | Upon receipt of a penalty surcharge under paragraph (2), a receiving agency shall issue a receipt to a person who pays the penalty surcharge. |
| (4) | Upon receipt of a penalty surcharge under paragraph (2), the receiving agency authorized to receive penalty surcharges shall notify the imposing authority of the receipt without delay. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-4 (Extension of Payment Deadline for Penalty Surcharge and Installment Payment) |
| (1) | Where a penalty surcharge that an unjust enterpriser shall pay in accordance with Article 31-2 of the Act exceeds 10 percent of the contract price or where a penalty surcharge imposed upon a small and medium entrepreneur provided in Article 2 of the Framework Act on Small and Medium Enterprises exceeds one billion won, if it is deemed impracticable for the person who shall pay the penalty surcharge to pay the full amount of the penalty surcharge in a lump sum due to any of the following grounds, the head of a local government may extend the deadline for payment or may permit the person to pay it in installments: |
| 1. | Where he or she suffers significant loss of property due to disaster, theft, etc.; |
| 2. | Where his or her business is in serious crisis due to deterioration of business conditions; |
| 3. | Where he or she is expected to face significant financial difficulty if he or she pays the penalty surcharge in a lump sum; |
| 4. | Where he or she is in any other situation similar to those specified in subparagraphs 1 through 3. |
| (2) | A person intending to apply for the extension of the deadline for the payment of a penalty surcharge or for the payment of a penalty surcharge in installments pursuant to paragraph (1) shall file an application with the head of the competent local government within 30 days from the date the person is notified of the payment of the penalty surcharge, accompanied by documents proving the grounds for the extension of the deadline for the payment of the penalty surcharge or for the payment of the penalty surcharge in installments. |
| (3) | The deadline for payment under paragraph (1) shall not be extended by more than one year from the date immediately following the deadline for payment. |
| (4) | If a person is permitted to pay a penalty surcharge in installments pursuant to paragraph (1), the interval between deadlines for payment in installments shall not exceed three months, and the number of installments shall not exceed three installments. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-5 (Composition of Penalty Surcharge Imposition Deliberative Committee) |
| (1) | The Penalty Surcharge Imposition Deliberative Committee established under Article 31-3 of the Act (hereafter in this Chapter referred to as the “Committee”) shall be composed of up to 15 members including one chairperson. |
| (2) | The Deputy Minister of the Local Fiscal and Economic Policy Office shall serve as the chairperson of the Committee, while other members of the Committee shall be comprised of the following persons, in consideration of gender equality: <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| 1. | A person appointed by the head of the relevant agency from among public officials of the Ministry of Economy and Finance, the Ministry of the Interior and Safety, the Ministry of Land, Infrastructure and Transport, the Public Procurement Service, or a local government; |
| 2. | Up to eight civilian members commissioned by the Minister of the Interior and Safety from among any of the following persons who have extensive knowledge of and experience in a field related to contracting: |
| (a) | A person who serves or has served as an associate professor or higher-ranking professor in law, economics, science of public administration, or business administration in a university or college provided in the Higher Education Act; |
| (b) | A person who holds a license as an attorney-at-law and has engaged in the business affairs related to the license for at least five years; |
| (c) | A person who has extensive knowledge of and experience in business affairs related to local procurement contracts and whose qualification is recognized as equivalent to the criteria prescribed in items (a) and (b). |
| (3) | A civilian member under paragraph (2) 2 shall hold office for a term of two years and may be appointed consecutively for further terms. |
| (4) | The term of office of a member of the Committee newly commissioned due to the resignation, etc. of a member of the Committee who is not a public official shall be the remaining term of office of his or her predecessor. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-6 (Duties of Chairperson) |
| (1) | The chairperson shall represent the Committee and shall have general supervision and control of the business affairs of the Committee. |
| (2) | If the chairperson is unable to perform his or her duties due to any unavoidable cause, a member designated by the Minister of the Interior and Safety shall act on behalf of the chairperson. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-7 (Exclusion of, Challenge to, and Recusal of, Member) |
| (1) | A member of the Committee shall be excluded from deliberation on any of the following cases: <Amended on Jun. 25, 2019> |
| 1. | Cases where a member of the Committee or a person who is or was the spouse of a member of the Committee is the relevant unjust enterpriser (including executive officers of the unjust enterpriser, if the unjust enterpriser is a corporation or organization; hereafter in this subparagraph and subparagraph 2 the same shall apply) or a person who holds a right or owes an obligation jointly with the unjust enterpriser; |
| 2. | Cases where a member of the Committee is or was a relative of the relevant unjust enterpriser; |
| 3. | Cases where a member of the Committee or the institution or corporation to which a member of the Committee belongs has given testimony, made a statement, given advice, conducted a study, provided services, or made an appraisal in connection with the case at issue; |
| 4. | Cases related to contracts ordered by a member of the Committee, by a central administrative agency to which the member belongs (in cases of the Public Procurement Service, referring to a Bureau to which a member of the Committee belongs, or a subsidiary body or an assisting body equivalent thereto), or by a local government; |
| 5. | Cases where a member of the Committee, as a public official of a central government agency or a local government, has conducted an investigation or examination in connection with the case at issue. |
| (2) | If the circumstances indicate that it would be impracticable to expect fair deliberations and resolutions by a member of the Committee, an unjust enterpriser of the case at issue may file a challenge against the relevant member. In such cases, the chairperson shall determine whether to accept the challenge without referring the challenge to the Committee for resolution. |
| (3) | If a member of the Committee falls under the grounds for exclusion under each subparagraph of paragraph (1) or grounds for challenge under paragraph (2), he or she shall recuse himself or herself from deliberation on the case at issue. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-8 (Request for Deliberation) |
| (1) | If a Mayor/Do Governor under Article 31-2 (3) of the Act or the head of a central administrative agency or the head of a local government to whom business affairs regarding contracts are delegated or entrusted by a Mayor/Do Governor (hereinafter referred to as "Mayor/Do Governor, etc.") requests deliberation on whether to impose a penalty surcharge or the appropriateness of the amount of a penalty surcharge, etc., he or she shall file with the Committee a written request specifying the following: |
| 1. | The name and address of the relevant unjust enterpriser (in cases of a corporation, referring to the name of the corporation, the location of its main office, and the name of its representative); |
| 2. | Reasons why it is necessary to impose the penalty surcharge; |
| 3. | The amount of the penalty surcharge imposed and the ground for determining the amount. |
| (2) | The written request under paragraph (1) shall be accompanied by the following documents: |
| 1. | A document supporting the cause to restrict the qualification for participation of an unjust enterpriser in tendering or to impose penalty surcharge on the unjust enterpriser, and relevant facts; |
| 2. | Other evidential documents necessary for deliberation. |
| (3) | If it is impracticable to determine whether to impose a penalty surcharge and whether the amount of a penalty surcharge is appropriate only with the documents specified in paragraphs (1) and (2), the Committee may request supplementation of documents within a reasonable period determined by the Committee. In such cases, the period required for the supplementation of documents shall not be included in the period specified for deliberation under Article 92-9 (1). |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-9 (Deliberation) |
| (1) | The Committee shall notify the Mayor/Do Governor, etc. of the deliberation results within 60 days from the date it receives the request for deliberation: Provided, That the period may be extended by up to 30 days in unavoidable circumstances. |
| (2) | If necessary, the Committee may require an unjust enterpriser and the Mayor/Do Governor, etc. to submit documents relevant to the matter on which deliberation is requested and may request relevant specialized institutions for appraisals, diagnosis, tests, etc. |
| (3) | The Committee shall give opportunities to express opinions to the relevant unjust enterpriser, the Mayor/Do Governor, etc., and their representatives before closing deliberation and making a decision, and if necessary, may summon the unjust enterpriser, the Mayor/Do Governor, etc., their representatives, and witnesses or relevant experts before the Committee to hear their opinions. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-10 (Meetings of Committee) |
| (1) | The chairperson shall convene and preside over meetings of the Committee. |
| (2) | A majority of the members of the Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present. |
| (3) | The Committee shall appoint one executive secretary who shall handle business affairs of the Committee. |
| (4) | Except as provided in paragraphs (1) through (3), matters necessary for the operation of the Committee shall be determined by the chairperson of the Committee. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-11 (Penalty Surcharge Subcommittee) |
| (1) | In order to efficiently handle its business affairs, the Committee may establish a subcommittee for construction works and a subcommittee for goods and services (hereinafter referred to as "penalty surcharge subcommittee"), respectively. <Amended on Aug. 9, 2017> |
| (2) | The subcommittee for construction works shall take charge of deliberation on the imposition of penalty surcharges in connection with construction works, such as construction and telecommunications. |
| (3) | The subcommittee for goods and services shall take charge of deliberation on the imposition of penalty surcharges in connection with the manufacture and purchase of goods and services. |
| (4) | Each subcommittee shall be composed of up to 10 members including one chairperson. |
| (5) | The chairperson and members of a penalty surcharge subcommittee shall be appointed by the Minister of the Interior and Safety, from among members of the Committee, but persons that are not members of the Committee may be appointed or commissioned as members of a subcommittee, if expertise in a case for which deliberation is requested is required. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (6) | The relevant penalty surcharge subcommittee may have a prior deliberation on a case for which deliberation is requested, and prepare a draft decision. In such cases, the penalty surcharge subcommittee shall present the draft decision to the Committee. <Amended on Aug. 9, 2017> |
| (7) | Articles 92-9, 92-10, and 92-12 shall apply mutatis mutandis to the deliberation by a penalty surcharge subcommittee, the subcommittee’s meetings, and allowances for members, etc. who attend the subcommittee. In such cases, “Committee” shall be construed as “penalty surcharge subcommittee”, and “chairperson of the Committee” as “chairperson of a penalty surcharge subcommittee.” |
| (8) | Except as provided in paragraphs (1) through (7), matters necessary for the composition and operation of a penalty surcharge subcommittee shall be determined by the chairperson of the Committee. |
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-12 (Allowances) |
Allowances may be paid to members of the Committees and relevant experts who attend a meeting of the Committee within the budget: Provided, That this shall not apply if a member of the Committee who is a public official attends a meeting of the Committee in direct connection with his or her business affairs.
[This Article Newly Inserted on Feb. 5, 2014]
| Article 92-13 (Dismissal of Members of Penalty Surcharge Imposition Deliberative Committee) |
A person who appoints or commissions a member of the Committee under the subparagraphs of Article 92-5 (2) may withdraw his or her appointment or dismiss a member from office if the member falls under any of the following subparagraphs: | 1. | Where the member becomes incapable of performing his or her duties due to a mental or physical disorder; |
| 2. | Where the member engages in misconduct in connection with his or her duties; |
| 3. | Where the member is deemed unsuitable as a member due to neglect of duty, loss of dignity, or any other reason; |
| 4. | Where the member fails to recuse himself or herself even though he or she falls under any subparagraph of Article 92-7 (1); |
| 5. | Where the member expresses that he or she is unable to perform the duties. |
[This Article Newly Inserted on Jan. 15, 2016]
| Article 93 (Restrictions on Qualifications for Participation by Persons Who Have Evaded Taxes in Tendering) |
| (1) | "Person ... evading taxes, etc. ... as prescribed by Presidential Decree" in Article 31-5 (1) of the Act means any of the following persons: <Amended on Feb, 17, 2021> |
| 1. | A person whose amount of evasion, reduction, exemption, or refund of customs duties by improper means under Article 270 of the Customs Act is not less than 500 million won; |
| (2) | "Data ... prescribed by Presidential Decree" in Article 31-5 (3) of the Act means a copy of a written court judgment which has become final and conclusive. |
| (3) | Article 92 (5), (6), (9), and (10) shall apply mutatis mutandis to restrictions on qualification for participation in tendering by a person falling under paragraph (1). |
[This Article Newly Inserted on Jun. 25, 2019]
| Article 93-2 (Data for Verifying Persons Subject to Restrictions on Execution of Negotiated Contracts) |
| 4. | A corporation registration certificate; |
| 5. | The register of stockholders. |
[This Article Newly Inserted on Jun. 25, 2019]
CHAPTER VI CONTRACTS FOR LARGE CONSTRUCTION PROJECTS
| Article 94 (Subject Matter of Application) |
Contracts made through alternate tendering or turnkey tendering and contracts for a specific construction project, among contracts for large construction projects, shall be governed by the provisions of this Chapter, but matters not otherwise provided in this Chapter shall be governed by the provisions of other Chapters of this Decree.
[This Article Wholly Amended on Jul. 26, 2010]
| (1) | The terms used in this Chapter are defined as follows: |
| 1. | The term “large construction project” means a new construction project for the combination of different types of work, the total project cost of which is estimated to be at least 30 billion won; |
| 2. | The term “specific construction project” means a construction project that the head of a local government deems it more advantageous to implement through alternate tendering or turnkey tendering, among new construction projects for the combination of different types of work, the total project cost of which is estimated to be less than 30 billion won; |
| 3. | The term “alternative” means a design, in which a new construction method or new technology with equivalent or better functions or effects, which can substitute the design prepared by the local government without changing the basic guidelines, for substitutable types of work, among types of work in the final design documents prepared by the local government, or the reduction of the construction period is reflected and with which the price in the relevant final design documents for the relevant project can be reduced to a level lower than the final design documents prepared by the local government, while the construction period does not exceed the period in the final design documents prepared by the local government (in cases of the reduction of the construction period, alternatives shall be limited to those with which the construction period is reduced to a period shorter than the period in the final design documents prepared by the local government); |
| 4. | The term “alternate tendering” means a tendering procedure for a construction project for which separate alternatives under subparagraph 3 are allowed, at each tenderer’s will, in addition to a confirming tender; |
| 5. | The term “turnkey tendering” means a tendering procedure under which a tenderer shall prepare design documents for the relevant project and other drawings and documents necessary for execution of construction works (hereinafter referred to as “drawings and documents”) in accordance with the master plan and guidelines presented by the local government for the construction project subject to the turnkey tendering and shall submit such design documents, and other drawings and documents necessary for execution of works along with tender documents when making a tender; |
| 6. | The term “tender for schematic design” means a tender submitted with schematic design accompanied by drawings and documents prepared prior to final design according to the master plan and guideline for turnkey tendering; |
| 7. | The term "invitation to bid" means documents specifying the scope and scale of a construction project, criteria for design and execution of construction works, quality and process management, and the master plan, guidelines, etc. regarding tendering or performance of contracts of which persons who intend to participate in tendering pursuant to subparagraphs 4 through 6 shall be aware in detail before participating in the tendering for the relevant construction project; |
| 8. | The term “final design documents” mean design documents necessary for execution of construction works (including drawings and documents annexed to the design documents), prepared in detail in accordance with the master plan, guidelines, and the schematic design; |
| 9. | The term "large construction project with continuing expenditure" means a large project, the project cost of which is reflected in the budget for continuing expenditure; |
| 10. | The term "general large construction project" means a large construction project, the project cost of which is not reflected in the budget for continuing expenditure. |
| (2) | If the scope and limits of alternative designs that can replace designs prepared by the local government is not clear, the scope and limitations thereof shall be determined after deliberation by the local deliberation committee on construction technology. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 96 (Deliberation on Methods of Tender for Large Construction Projects) |
| (1) | In cases of a large construction project or a specific construction project (hereafter in this Article referred to as "large construction project, etc."), the head of a local government shall undergo deliberation by the local deliberation committee on construction technology with respect to the following matters: <Amended on Nov. 29, 2016> |
| 1. | Matters regarding the methods of tender; |
| 2. | Matters regarding the method of determining a person qualified to provide final design under Article 98-2 (1); |
| 3. | Matters regarding the method of determining a successful bidder under Article 98-2 (2). |
| (2) | If the head of a local government intends to undergo deliberation by the local deliberation committee on construction technology pursuant to paragraph (1), he or she shall submit the master plan for the performance of large construction projects, etc. to be performed after the relevant year as prescribed by the following subparagraphs, but matters regarding the method for formulating a master plan for the performance of large construction projects, etc. and the timing for submission of such master plan shall be prescribed by Ordinance of the Ministry of the Interior and Safety: <Amended on Aug. 19, 2015; Jul. 26, 2017> |
| 1. | A master plan for construction projects to be awarded through turnkey tendering shall be formulated and submitted separately from a master plan for other construction projects before preparing schematic design documents; |
| 2. | With respect to a construction project for which an order is to be awarded through alternate tendering among construction projects for which an order is not to be awarded through turnkey tendering, the master plan shall be submitted after preparing final design documents. |
| (3) | When a local deliberation committee on construction technology completes deliberation on the master plan for the performance of large construction projects, etc. submitted pursuant to paragraph (2), the Mayor/Do Governor shall publicly announce the details of the determination referred to in the subparagraphs of paragraph (1). <Amended on Nov. 29, 2016> |
| (4) | The head of a local government shall call tenders for a large construction project, etc. as publicly announced pursuant to paragraph (3), unless there is a compelling reason not to do so. <Amended on Nov. 29, 2016> |
| 1. | Where it is deemed impracticable for the local deliberation committee on construction technology to make deliberation on its own because a large construction project, etc. subject to deliberation requires expertise; |
| 2. | Where the head of a relevant central administrative agency requests the head of the relevant local government because he or she deems that a large construction project, etc. subject to deliberation requires a high level of expertise as a national policy project; |
| 3. | Where the Minister of the Interior and Safety requests the head of the relevant local government because there is public criticism over bribery, etc. or a dispute over impartiality in the course of deliberation by the relevant local deliberation committee on construction technology. |
| (6) | Where a local deliberation committee on construction technology fails to hold a deliberation for at least two years, the head of a local government may request the Central Construction Technology Deliberation Committee to deliberate on the relevant matter. <Newly Inserted on Nov. 24, 2014> |
| (7) | Upon receipt of a request for deliberation by the Central Construction Technology Deliberation Committee pursuant to paragraph (5) 2 or 3, the head of the relevant local government shall request the Central Construction Technology Deliberation Committee for deliberation. In such cases, the head of a Si/Gun/Gu shall file such request through the competent Mayor/Do Governor. <Amended on Nov. 24, 2014> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 97 (Qualification for Participation in Tendering, Such as Turnkey Tendering) |
| (1) | The head of a local government or a contracting officer shall only permit persons who meet all the following requirements to participate in turnkey tendering or alternate tendering: Provided, That if persons who meet the requirements under either of subparagraph 1 or 2 join with one another to meet all the following requirements and intend to participate in turnkey tendering or alternate tendering, the head of a local government or a contracting officer shall permit them to participate in the tendering procedure: <Amended on May 22, 2014; Jan. 7, 2020; Sep. 14, 2021> |
| (2) | In cases of alternate tendering, the head of a local government or a contracting officer shall permit a person to participate in tendering even if he or she meets only the requirements prescribed in paragraph (1) 1, insofar as the person makes a conforming tender without submitting an alternative, notwithstanding paragraph (1). |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 97-2 (Pre-Qualification for Turnkey Tendering) |
| (1) | In cases of turnkey tendering or alternate tendering, the head of a local government or a contracting officer may pre-qualify bidders to select persons eligible to participate in the turnkey tendering or alternate tendering. In such cases, the results of selection shall be notified to the qualified persons selected. |
| (2) | If the head of a local government or a contracting officer pre-qualifies bidders pursuant to paragraph (1), he or she shall conduct pre-qualification according to the standards determined by the Minister of the Interior and Safety or may determine pre-qualification criteria within the scope of such standards, by comprehensively taking into account the factors necessary for evaluating the ability to perform a contract, such as the difficulty in the performance of a contract, performance records, technical ability, financial position, the conscientiousness in the performance of a contract, and social credibility: Provided, That if the head of a local government or a contracting officer intends to determine the criteria differently outside the scope of the standards determined by the Minister of the Interior and Safety, he or she may do so after having a prior consultation with the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (3) | The head of a local government or a contracting officer shall keep the following documents for inspection by a person who intends to participate in tendering before commencing a tendering procedure, and shall issue the documents at the request of such person. In such cases, those documents may be posted on the designated information processing system in lieu of such inspection and issuance: |
| 1. | Pre-qualification criteria; |
| 2. | Guidelines for preparing evidential documents necessary for pre-qualification and methods for submitting such documents; |
| 3. | Other matters necessary for pre-qualification. |
| (4) | Notwithstanding paragraph (2), if relevant statutes or regulations prescribe procedures, etc. for selecting business entities in regard to services, etc., the head of a local government or a contracting officer may select persons qualified to participate in bidding according to such procedures, etc. |
| (5) | Detailed procedures for pre-qualification under paragraph (1) shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 98 (Tendering Procedures Including Turnkey Tendering) |
| (1) | In turnkey tendering, tenders for schematic design shall be invited, and then only the persons selected as those qualified to provide final design under Article 100 (1) shall be required to submit the final design documents. <Amended on Jul. 26, 2010> |
| (2) | If an alternate bidder intends to submit an alternative, along with a conforming tender, he or she shall be required to submit the tender documents accompanied by the following drawings and documents: Provided, That no person may submit at least two alternatives at once: <Amended on Jul. 26, 2010; May 22, 2014> |
| 1. | An explanatory note in detail regarding the alternative design; |
| 3. | A priced bill of quantities specifying the unit prices and quantities for the conforming tendering and the alternate tendering; |
| 4. | Documents stating advantages of adopting the alternative and other matters for reference. |
| (3) | A turnkey bidder shall submit tender documents for schematic design or final design documents, accompanied by drawings and documents according to the following classifications: <Amended on Jul. 26, 2010; May 22, 2014> |
| 1. | In cases of tender documents for schematic design: |
| (a) | An explanatory note regarding schematic design; |
| (c) | Other matters required at the time of the public announcement; |
| 2. | In cases of final design documents: |
| (a) | An explanatory note in detail regarding the final design documents; |
| (c) | A priced bill of quantities specifying the unit prices and quantities; |
| (d) | Other documents stating other matters for references. |
| (4) | In any of the following cases, the head of a local government or a contracting officer shall request the local deliberation committee on construction technology to deliberate the appropriateness of the relevant design and to assess design points. In such cases, the local deliberation committee on construction technology shall examine technical feasibility and notify the head of a local government or a contracting officer of the design points, along with documents specifying whether the design is appropriate (excluding cases of conforming tendering): <Amended on Jul. 26, 2010; Sep. 13, 2016> |
| 1. | In cases of alternate tendering, where he or she receives original design documents and alternate tendering documents for a bid subject to a performance capability evaluation selected under Article 99 (1); |
| 2. | In cases of turnkey tendering, where he or she receives tender documents for schematic design or final design documents under paragraph (3); |
| 3. | Where an order is awarded through turnkey tendering but there is only one bidder after the re-announcement of tender under Article 26, and when he or she receives schematic design documents or final design documents. |
| (5) | Deleted. <Nov. 26, 2019> |
| (6) | When deliberating on a design under paragraph (4), a local deliberation committee on construction technology may request supplementation if drawing and documents attached to alternate tendering documents, tender documents for schematic design, or final design documents are insufficient in light of the master plan for bidding, details of guidelines, or details of schematic design. <Amended on Jul. 26, 2010> |
| Article 98-2 (Selection of Methods to Determine Person Qualified to Provide Final Design or Successful Bidder at Turnkey Tendering) |
| (1) | In cases of turnkey tendering, the head of a local government or a contracting officer shall determine a person qualified to provide final design, from among persons selected pursuant to Article 100 (1). In such cases, the head of a local government or a contracting officer shall comply with the appropriate method deliberated and chosen by the local deliberation committee on construction technology among the following methods, in consideration of the purpose and characteristics of the construction works, unless there is a compelling reason not to do so: <Amended on Nov. 29, 2016> |
| 1. | Determining the lowest tenderer as a person qualified to provide final design; |
| 2. | Determining a person whose bid price adjusted by dividing the bid price by design points is the lowest or the person whose design points adjusted by dividing the design points by his or her bid price are the highest, as a person qualified to provide final design; |
| 3. | Determining a person whose points computed by adding a weight to design points and price points and aggregating the results respectively evaluated are the highest, as a person qualified to provide final design; |
| 4. | Determining a person who scores the highest design points as a person qualified to provide final design, where the contract price has been already fixed and a tenderer is required to submit schematic design documents only. |
| (2) | In cases of alternate tendering, the head of a local government or a contracting officer shall determine a successful bidder from among the conforming tenderers and persons who have submitted alternatives adopted under Article 99 (2) through (4); in such cases, the head of a local government or a contracting officer shall comply with the appropriate method deliberated and chosen by the local deliberation committee on construction technology among the following methods, in consideration of the purpose and characteristics of the construction works, unless there is a compelling reason not to do so: <Amended on Nov. 29, 2016> |
| 1. | Determining the lowest tenderer as a successful bidder; |
| 2. | Determining a person whose bid price adjusted by dividing the bid price by design points is the lowest or a person whose design points adjusted by dividing the design points by his or her bid price are the highest, as a successful bidder; |
| 3. | Determining a person whose points computed by adding a weight to design points and price points and aggregating the results respectively evaluated are the highest, as a successful bidder. |
| (3) | The head of a local government or a contracting officer shall specify the method for determining a person qualified to provide final design or a successful bidder under paragraphs (1) and (2) when announcing the tender. |
| (4) | If a person qualified to provide final design is determined under paragraph (1) 4 in turnkey tendering, he or she shall not be required to submit tender documents when tendering for schematic design, notwithstanding Article 95 (1) 5 and 6. |
| (5) | The methods and weights for computing design points and price points necessary for a method for determining a person qualified to provide final design or a successful bidder under the subparagraphs of paragraphs (1) and (2), the formula for adjusting designs and prices, and other necessary matters shall be determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Aug. 5, 2009]
| Article 99 (Adoption of Alternatives in Alternate Tendering and Determination of Successful Bidder) |
| (1) | If the alternate tendering price in alternative tender documents submitted pursuant to Article 98 (2) (including alternate tendering price after adjustment under paragraph (3) or (4)) meets all the following requirements, the head of a local government or a contracting officer shall select it as a bid subject to a performance capability evaluation: |
| 1. | The alternate bid price shall be lower than the conforming tender price submitted by the bidder; |
| 2. | The alternate bid price shall not be higher than the budget price for the entire construction project, and the bid price for the alternative type of work is not more than the budget price for the alternative type of work. |
| (2) | Upon receipt of the notice of whether designs are appropriate and of design points under Article 98 (4) with regard to alternate tendering documents for a bid subject to a performance capability evaluation selected under paragraph (1), the head of a local government or a contracting officer shall select six alternatives (or all alternatives notified as qualified, if the number of alternatives notified as qualified is less than six) in the order of higher design points, out of alternate tender documents notified as qualified, and shall adopt an alternative that scores a higher design points than the original design: Provided, That if some alternative types of work, out of several alternative types of work, score a lower design points than the original design, such alternative types of work shall not be adopted for the relevant types of work. |
| (3) | If there is a type of work that is not adopted as an alternative under the proviso of paragraph (2), the head of a local government or a contracting officer shall adjust the entire alternate bid price by replacing the bid price for the relevant type of work on the alternate tendering documents of the alternate bidder with the bid price for the relevant type of work specified in the priced bill of quantities submitted through conforming tendering. |
| (4) | If a partial design modification is inevitable regarding a type of work adopted due to a type of work not adopted as an alternative under the proviso of paragraph (2) after adjustment under paragraph (3), the head of a local government or a contracting officer may modify the design accordingly: Provided, That the bid price for the modified type of work shall not be increased. |
| (5) | The head of a local government or a contracting officer shall determine a successful bidder from among the conforming tenderers and the persons who have submitted alternatives selected under paragraphs (2) through (4) by applying the methods for determining the successful bidder selected under Article 98-2 (2). |
| (6) | If no person has submitted an alternative or no successful bidder under paragraph (5) exists, the head of a local government or a contracting officer shall determine a successful bidder by the following methods: <Amended on Jan. 15, 2016> |
| 1. | A construction project, the estimated price of which is at least 30 billion won: Methods of evaluation under Article 42-3 (2); |
| 2. | A construction project other than construction projects falling under subparagraph 1: Methods of examining the abilities to perform contracts under the main clause of Article 42 (1). |
| (7) | The determination of a successful bidder under paragraphs (1) through (6) shall be made within 80 days from the tendering date, in the absence of unavoidable causes. |
| (8) | If the head of a local government or a contracting officer intends to make an adjustment or modification under paragraphs (3) and (4), he or she shall undergo deliberation thereon by the local deliberation committee on construction technology in advance. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 100 (Selection of Successful Tender in Turnkey Tendering) |
| (1) | Upon receipt of notice under Article 98 (4) in tendering for schematic design, the head of a local government or a contracting officer shall select six persons (or all persons notified as qualified, if the number of persons notified as qualified is less than six) in the order of higher design points and then determine a person qualified to provide final design by applying the methods for determining a person qualified to provide final design selected under Article 98-2 (1): Provided, That the tender shall be re-announced if there is not more than one person qualified to provide schematic design under Article 98 (4) 1 and 2. <Amended on Sep. 13, 2016> |
| (2) | Upon receipt of notice that the relevant final design is appropriate from a local deliberation committee on construction technology pursuant to Article 98 (4), the head of a local government or a contracting officer shall determine a person who has submitted the final design documents as a successful bidder. |
| (3) | If the bid price submitted by the bidder determined as a person qualified to provide final design under paragraph (1) exceeds the budget for continuing expenditure in cases of a large-scale construction project with continuing expenditure or the total construction project budget in cases of a general large construction project, the head of a local government or a contracting officer shall consult with such bidder to adjust the price to fit the budget, and if no agreement is reached, the tender shall be re-announced. |
| (4) | The determination of a successful bidder under paragraphs (1) and (2) shall be made within 60 days from the date final design documents are submitted, in the absence of unavoidable causes. |
| (5) | If the head of a local government or a contracting officer deems it necessary in determining the successful bidder under paragraph (2) due to the urgency of the construction works or other extraordinary circumstances, he or she may require a person qualified to provide final design under paragraph (1) to prepare final design documents by classifying the relevant construction works in the order of priority for each work process; and upon receipt of a notice that the relevant final design is appropriate from the local deliberation committee on construction technology, the head of a local government or a contracting officer may determine the person qualified to provide final design as the successful bidder and have him or her execute the construction works in the order of priority. |
| (6) | The head of a local government or a contracting officer shall require a person determined as a successful bidder under paragraph (5) to submit a priced bill of quantities for the entire construction project and the construction project for which such person is notified as qualified to provide final design before having him or her execute the relevant construction project, and shall enter into a contract accordingly. |
| (7) | When a person is notified as qualified to provide final design for the entire construction project, the head of a local government or a contracting officer shall require the person who enters into a contract under paragraph (6) to prepare a priced bill of quantities again to replace the original priced bill of quantities. In such cases, the original contract price shall not be increased. |
| (8) | If the head of a local government or a contracting officer intends to determine a successful bidder or enter into a contract under paragraphs (5) and (6), he or she shall specify matters regarding the scope of the type of works for which final design documents shall be submitted with priority, the deadline for submission, the preparation and submission of a priced bill of quantities, etc. in the invitation to bid, etc. so that persons who intend to participate in tendering can be aware of them before submitting a bid. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 100-2 (Deliberation by Technical Advisory Committee Following Entrustment of Contracting Duties) |
If contracting duties under this Chapter are entrusted to the head of a central administrative agency or an institution falling under Article 6 (2) 1, deliberation, etc. by a technical advisory committee established in the relevant central administrative agency or institution falling under Article 6 (2) 1 may substitute the deliberation, etc. by the local deliberation committee on construction technology under this Chapter after entrustment. <Amended on May 22, 2014; Sep. 13, 2016> [This Article Newly Inserted on Sep. 15, 2011]
[Title Amended on May 22, 2014]
| Article 101 (Reimbursement of Design Fees) |
| (1) | The head of a local government or a contracting officer may reimburse either of the following persons all or part of design fees within the budget: <Amended on Aug. 19, 2015> |
| 1. | A person who is not determined as a successful bidder from among persons selected under Articles 99 (2) and 100; |
| 2. | A person who participates in alternate tendering or turnkey tendering, which is canceled due to a cause attributable to the authority awarding the contract. |
| (2) | Matters necessary for the criteria, procedure, etc. for reimbursing design fees shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 102 Deleted. <Sep. 20, 2007> |
| Article 103 (Restriction on Adjustment of Contract Price Following Design Change) |
| (1) | Even where the terms and conditions of a contract for a large construction project are changed due to design changes for alternate tendering or turnkey tendering, the contract price shall not be increased, except for a cause attributable to the local government or force majeure causes, such as a natural disaster. |
| (2) | In cases of turnkey tendering, if a final design is supplemented prior to the execution of a contract after the tendering for schematic design due to any of the following reasons at no fault of a person qualified to provide final design, the contract price shall be adjusted in reflection of design changes after the execution of the contract: <Amended on Jan. 22, 2016> |
| 1. | Where the final design based on the schematic design is additionally changed due to a civil petition, an environmental impact assessment, a traffic impact assessment, or conditions of authorization or permission under relevant statutes or regulations; |
| 2. | Where the relevant local government requests the supplementation of any matters neither specified nor reflected in the master plan, invitation to bid, or schematic design documents presented by the local government or requests the supplementation thereof at the time of deliberation on the final design. |
| (3) | If the contract price is to be adjusted under paragraph (1) or (2), the following criteria shall be complied with: <Amended on Nov. 24, 2014> |
| 1. | The unit price for the decreased quantity of construction works: The unit price on the priced bills of quantities submitted pursuant to Article 98 (2) or (3); |
| 2. | The unit price for the increased quantity of construction works: The unit price determined through consultation between parties to the contract within the range of the unit price calculated as at the time of design change and the unit price specified in the priced bill of quantities under subparagraph 1: Provided, That if the parties to the contract fail to reach an agreement, the amount shall be calculated by the following formula: |
(Unit price calculated as at the time of the design change + Unit price specified in the priced bill of quantities under subparagraph 1) x 50/100;
| 3. | The unit price for a new expenditure item for which no unit price is specified in the priced bill of quantities under subparagraph 1: The unit price calculated as at the time of design change. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 104 Deleted. <Sep. 20, 2007> |
| Article 105 Deleted. <Aug. 5, 2009> |
CHAPTER VII CONTRACT DELIBERATION COMMITTEE AND CONTRACT DISPUTE CONCILIATION COMMITTEE
| Article 106 (Composition of Contract Deliberation Committee) |
| (1) | A contract deliberation committee under Article 32 of the Act shall be classified into a City/Do contract deliberation committee established in a City/Do (hereinafter referred to as "City/Do committee") and a Si/Gun/Gu contract deliberation committee established in a Si/Gun/Gu (hereinafter referred to as "Si/Gun/Gu committee"). |
| (2) | Members of a contract deliberation committee shall be appointed or commissioned by the head of a local government in consideration of gender, from among the following persons; and the chairperson shall be elected among and by non-governmental members: <Amended on May 22, 2014; Nov. 28, 2014; Aug. 19, 2015; Jan. 15, 2016; Sep. 13, 2016; Nov. 29, 2016; Dec. 11, 2018> |
| 1. | Persons who hold the post of professor (including associate professor or assistant professor) of relevant departments in schools prescribed in subparagraphs 1 through 6 of Article 2 of the Higher Education Act; |
| 2. | Persons qualified as an attorney-at-law, who has extensive knowledge of and experience in the relevant field; |
| 5. | Deleted; <Jan. 15, 2016> |
| 6. | Persons who are or were public officials of a State agency or other local governments, who have extensive knowledge of and experience in contracts, technology, etc. in the relevant field; |
| (3) | In order to support the composition of a Si/Gun/Gu committee, a Mayor/Do Governor may prepare the current status of persons meeting the qualifications under the subparagraphs of paragraph (2) and provide such information to a Si/Gun/Gu. |
| (4) | Each member of the contract deliberation committee shall hold office for a term of two years. <Newly Inserted on Jan. 15, 2016> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 106-2 (Dismissal of Members of Contract Deliberation Committee) |
If a member falling under Article 106 (2) 1 through 4 and 6 falls under any of the following cases, the head of a local government may remove or dismiss such member from office: <Amended on Aug. 9, 2017> | 1. | Where the member becomes incapable of performing his or her duties due to a mental or physical disorder; |
| 2. | Where the member engages in misconduct in connection with his or her duties; |
| 3. | Where the member is deemed unsuitable as a member due to neglect of duty, loss of dignity, or any other reason; |
| 4. | Where the member fails to recuse himself or herself despite falling under any of the subparagraphs of Article 92-7 (1) (excluding subparagraph 4) which is applied mutatis mutandis under Article 107 (6); |
| 5. | Where the member expresses that he or she is unable to perform the duties. |
[This Article Newly Inserted on Jan. 15, 2016]
| Article 107 (Operation of Contract Deliberation Committee) |
| (1) | If the contract deliberation committee deems it necessary for the efficient deliberation, it may set up subcommittees for each field, such as construction works, services, and goods, and have them make deliberation. |
| (2) | The chairperson of the contract deliberation committee shall be the chairperson of a subcommittee, and members of a subcommittee shall be appointed by the chairperson of the contract deliberation committee from among members of the contract deliberation committee who have expertise in the relevant field. |
| (3) | Matters deliberated by a subcommittee under paragraph (1) shall be deemed deliberated by the contract deliberation committee. |
| (4) | A majority of the members of the contract deliberation committee (including subcommittees; hereinafter the same shall apply) shall constitute a quorum and any resolution thereof shall require the concurring vote of a majority of those present. |
| (5) | Notwithstanding paragraph (4), the chairperson may make deliberation in writing in any of the following cases; in such cases, any resolution thereof shall require the submission of deliberation letters by a majority of the members of the contract deliberation committee and the concurring vote of a majority of those who submitted the deliberation letters: <Newly Inserted on Aug. 9, 2017> |
| 1. | Where an agenda item is minor; |
| 2. | Where there is lack of time to hold a meeting attended by the members due to urgency; |
| 3. | Where it is impracticable to meet a quorum to hold a meeting attended by members in person due to a natural disaster or any other unavoidable reason. |
| (6) | Article 92-7 (excluding paragraph (1) 4) shall apply mutatis mutandis to the exclusion of, challenge to, and recusal of a member. In such cases, "case" shall be construed as "agenda item", and "unjust enterpriser" as "person relevant to the deliberation", respectively. <Amended on Aug. 19, 2015; Aug. 9, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 108 (Matters Subject to Deliberation by Contract Deliberation Committee) |
| (1) | "Contract of at least the scale prescribed by Presidential Decree" in Article 32 (1) of the Act means any of the following contracts: Provided, That projects that require early execution of the budget for purposes of an urgent disaster recovery project or the invigoration of the regional economy shall be excluded herefrom. <Amended on Sep. 15, 2011> |
| 1. | A City/Do committee: A contract for a construction project, the estimated price of which is at least seven billion won (in cases of goods, services, etc., at least two billion won) awarded by the relevant City/Do; |
| 2. | A Si/Gun/Gu committee: A contract for a construction project, the estimated price of which is at least five billion won (in cases of goods, services, etc., at least one billion won) awarded by the relevant Si/Gun/Gu. |
| (2) | Notwithstanding paragraph (1), matters regarding Article 32 (1) 2 through 4 of the Act shall be deliberated by the contract deliberation committee, irrespective of the scale of contracts. <Amended on Nov. 24, 2014> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 109 (Details Necessary for Composition and Operation of Contract Deliberation Committee) |
Details necessary for the composition, operation, etc. of a contract deliberation committee shall be prescribed by ordinance of the relevant local government.
[This Article Wholly Amended on Jul. 26, 2010]
| Article 110 (Subject Matter of Objection) |
| (1) | "Scale prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 34 (1) of the Act means the following: <Amended on Feb. 5, 2014; Jun. 25, 2019> |
| 3. | Other construction works under any other statutes or regulations: The estimated price of 80 million won; |
| 4. | A contract for manufacture or purchase of goods or for services, etc.: The estimated price of 50 million won. |
| (2) | "Matters prescribed by Presidential Decree" in Article 34 (1) 5 of the Act means matters in violation of multilateral or bilateral government procurement agreements joined or executed by the Government (including government procurement provisions included in international agreements; hereinafter referred to as “agreement”) in international tendering procedures under Article 5 of the Act, matters specifying special covenants or terms and conditions that unfairly restrict contractual benefits of the other party to the contract under Article 6 (1) of the Act, adjustment of the contract prices resulting from price fluctuations, design change, changes in the terms and conditions of contracts, or the extension of the contract period under Articles 73 through 75 and 75-2, and matters related to liquidated damages and the extension of the contract period under Article 90. <Amended on Sep. 15, 2011; Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 111 (Request for Reexamination) |
| (1) | A person who intends to file a request for reexamination under Article 34 (4) of the Act (hereinafter referred to as “request for reexamination”) or an application for conciliation under Article 34-2 (3) of the Act (hereinafter referred to as “application for conciliation”) (hereinafter referred to as “claimant, etc.”) shall sign or affix his or her name and seal to an application therefor and submit the application accompanied by evidential materials and relevant documents to the a contract dispute conciliation committee for local governments established in the Ministry of the Interior and Safety under Article 35 of the Act (hereinafter referred to as “Committee”). <Amended on Mar. 23, 2013; Nov. 19, 2014; Nov. 29, 2016; Jul. 26, 2017; Jun. 25, 2019> |
| (2) | Except as provided in paragraph (1), the Minister of the Interior and Safety shall determine matters regarding procedures, etc. necessary for filing a request for reexamination or an application for conciliation. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
[Title Amended on Jun. 15, 2019]
| Article 112 Deleted. <Nov. 29, 2016> |
| Article 113 (Functions of Committee) |
If the Committee receives a request for reexamination or an application for conciliation under Article 111 (1), it shall notify the head of the relevant local government of the details of such request or application and examine and conciliate the matters requested or applied for. [This Article Wholly Amended on Jun. 25, 2019]
| Article 114 (Subcommittees) |
| (1) | In order to efficiently handle its business affairs, the Committee may establish a subcommittee for construction works and a subcommittee for goods and services (hereinafter referred to as "subcommittee"). <Amended on Aug. 9, 2017> |
| (2) | The subcommittee for construction works shall take charge of matters regarding local contract disputes related to construction works, such as construction, electricity, and information and communications. |
| (3) | The subcommittee for goods and services shall take charge of local contract disputes related to the manufacture and purchase of goods and services. |
| (4) | Each subcommittee shall be composed of up to 10 members including one chairperson. |
| (5) | The chairperson and members of each subcommittee shall be appointed by the chairperson of the Committee, from among members of the Committee, but persons who are not members of the Committee may be commissioned as members of a subcommittee, if expertise is necessary with respect to matters for which an application for conciliation is filed. |
| (6) | The relevant subcommittee may examine in advance a dispute for which an application for conciliation has been filed with the Committee and prepare a proposal of conciliation. In such cases, the relevant subcommittee shall submit the proposal of conciliation it has prepared to the Committee. <Amended on Aug. 9, 2017> |
| (7) | Articles 117, 118 (2) and (3), and 121 shall apply mutatis mutandis to subcommittees. |
| (8) | Except as provided in paragraphs (1) through (7), matters necessary for the operation of the Committee shall be determined by the chairperson, subject to resolution by the Committee. |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 115 (Suspension of Contracting Procedures) |
| (1) | If the Committee orders the head of the relevant local government to postpone the tendering procedures or to suspend the execution or performance of a contract (hereafter in this Article referred to as "suspension of contracting procedures") pursuant to Article 36 (2) of the Act, it shall do so in writing within seven days after receiving opinions under Article 118, unless there is a compelling reason not to do so. |
| (2) | If the Committee does not order to suspend the contracting procedures because it is likely to cause adverse effects on public interests or interested parties in accordance with an agreement, it shall notify the claimant, etc. and the head of the relevant local government of the grounds therefor in writing. <Amended on Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 116 (Duties of Chairperson) |
| (1) | The chairperson shall have general supervision and control of the business affairs of the Committee and represent the Committee. |
| (2) | If the chairperson is unable to perform his or her duties due to unavoidable causes, a person nominated by the Minister of the Interior and Safety from among the members shall act on behalf of the chairperson. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 116-2 (Exclusion of, Challenge to, and Recusal of, Members) |
| (1) | Any member of the Committee shall be excluded from deliberation on any of the following cases: |
| 1. | Cases where the member of the Committee, or a current or former spouse of the member of the Committee, is a party to the case at issue (including executive officers of a corporation or organization, if the party is a corporation or organization; hereafter in this subparagraph and subparagraph 2 the same shall apply) or a joint right-holder or joint obligor with a party to the case at issue; |
| 2. | Cases where a member of the Committee is the current or former relative of any party to the case at issue; |
| 3. | Cases where a member of the Committee or the institution or corporation to which a member of the Committee belongs has given testimony, made a statement, given advice, conducted a study, provided services, or made an appraisal in connection with the case at issue; |
| 4. | Cases related to contracts ordered by a member or a central administrative agency to which the member belongs (in cases of the Public Procurement Service, referring to a Bureau to which a member of the Committee belongs, or a subsidiary body or an assisting body equivalent thereto) or by a local government; |
| 5. | Cases where a member of the Committee, as a public official of a central government agency or a local government, has conducted an investigation or examination in connection with the case at issue. |
| (2) | If the circumstances indicate that it would be impracticable to expect fair deliberations by a member of the Committee, a claimant, etc. of the case at issue may file a challenge against the member. In such cases, the chairperson shall determine whether to accept the challenge without referring the challenge to the Committee for resolution. |
| (3) | If a member of the Committee falls under the grounds for exclusion under each subparagraph of paragraph (1) or grounds for filing a challenge under paragraph (2), he or she shall recuse himself or herself from deliberation on the case at issue. |
[This Article Newly Inserted on Jun. 25, 2019]
| Article 117 (Meetings of Committee) |
| (1) | A meeting of the Committee shall be convened by the chairperson. |
| (2) | A majority of the members of the Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present. |
| (3) | Notwithstanding paragraph (2), where an agenda item subject to deliberation is minor or where other unavoidable causes arise, the chairperson may make deliberation in writing. In such case, any resolution thereof shall require the submission of deliberation letters by a majority of the members of the Committee and the concurring vote of a majority of those who submitted the deliberation letters. |
| (4) | Deleted. <Nov. 29, 2016> |
| (5) | The Committee shall have one executive secretary to handle its business affairs. <Amended on May 23, 2012> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 118 (Presentation of Opinions by Heads of Local Governments) |
| (1) | The head of a local government notified of the details of a request for reexamination or an application for conciliation pursuant to Article 113 shall submit his or her opinion thereon in writing to the Committee within 14 days from the date he or she is notified thereof. <Amended on Jun. 25, 2019> |
| (2) | When necessary for examination and conciliation, the Committee may request the claimant, etc. and the head of the relevant local government to submit documents relevant to the matters requested or applied for, and may request the relevant specialized institution for appraisals, diagnosis, tests, etc. <Amended on Jun. 25, 2019> |
| (3) | The Committee shall give opportunities to express opinions to the parties to a case or their representatives before completing mediation and may summon the claimant, etc., the head of the relevant local government, their representatives, and witnesses or relevant experts before the Committee to hear their opinions, if necessary. <Amended on Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 119 (Suspension of Conciliation) |
If a lawsuit is pending in a court for the same case as the case for which a request or an application has been filed with the Committee, the Committee may suspend the examination and conciliation of the case. In such cases, the parties who have filed the request or application shall be notified of the grounds for suspension. <Amended on Jun. 25, 2019>
| Article 120 (Conciliation) |
| (1) | The Committee shall prepare a proposal of conciliation on the results of examination of a request or an application, and notify the parties thereof. <Amended on Jun. 25, 2019> |
| (2) | If it is deemed that the claimant, etc. has suffered disadvantage due to matters prescribed in the subparagraphs of Article 34 (1) of the Act in the preparation of the proposal of conciliation under paragraph (1), the acts conducted by the head of the local government or the contracting officer shall be revoked or corrected. <Amended on Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
Allowances may be paid to members and relevant experts present at meetings of the Committee within the budget: Provided, That this shall not apply where a member who is a public official attends a meeting of the Committee in direct relation with his or her business affairs. <Amended on Feb. 5, 2014>
[This Article Wholly Amended on Jul. 26, 2010]
| Article 122 (Bearing of Expenses) |
| (1) | Expenses incurred in examination and conciliation of a request or application shall be borne by the claimant, etc.: Provided, That if there is an agreement between the parties, the agreement shall be complied with. <Amended on Jun. 25, 2019> |
| (2) | Details regarding expenses resulting from a request or application shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jun. 25, 2019> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 123 (Details of Operation of Committee) |
Except as provided in this Decree, matters necessary for the operation of the Committee shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Jul. 26, 2010]
CHAPTER VIII REPORTING AND OTHERS
| Article 123-2 (Designation of Institutions Specialized in Local Contracts) |
| (1) | In order to be designated as an institution specialized in local contracts under Article 39 (2) of the Act (hereinafter referred to as "institution specialized in local contracts"), a specialized institution shall have an organization and human resources to conduct education, research, advisory, etc. on the following: <Amended on Jan. 5, 2021> |
| 1. | Matters regarding the prior disclosure of purchase specifications; |
| 2. | Matters regarding a tender announcement (including public announcement of a negotiated contract for which it is required to receive written estimates from at least two persons); |
| 3. | Matters regarding procedures for opening tenders and determining a successful bidder; |
| 4. | Matters regarding the execution of a contract (including matters regarding changes in the terms and conditions of a contract); |
| 5. | Matters regarding the performance of contracts, such as supervision, inspection, and payment of prices. |
| (2) | A specialized institution under Article 6 (2) that intends to be designated as an institution specialized in local contracts shall submit to the Minister of the Interior and Safety an application for designation of an institution specialized in local contracts prescribed by Ordinance of the Ministry of the Interior and Safety, accompanied by the following documents: <Amended on Jan. 5, 2021> |
| 1. | Documents supporting the fact that the applicant has an organization and human resources to perform the business affairs under the subparagraphs of paragraph (1), including education, research, and advisory; |
| 2. | Documents evidencing the performance records of specialized survey, research, evaluation, counseling, support, etc. for the matters prescribed in the subparagraphs of paragraph (1) (limited to cases where there are performance records). |
| (3) | Upon receipt of an application under paragraph (2), the Minister of the Interior and Safety shall examine whether the applicant meets the requirements for designation under paragraph (1) and determine whether to grant designation. <Newly Inserted on Jan. 5, 2021> |
| (4) | When the Minister of the Interior and Safety determines whether to grant designation under paragraph (3), he or she may consider the performance records of specialized survey, research, evaluation, counseling, support, etc. for the matters prescribed in the subparagraphs of paragraph (1). <Newly Inserted on Jan. 5, 2021> |
| (5) | An institution specialized in local contracts may request the head of a local government to provide data necessary for the performance of business affairs, such as education, research, and advisory, with respect to the matters referred to in the subparagraphs of paragraph (1). <Amended on Jan. 5, 2021> |
| (6) | If the Minister of the Interior and Safety designates an institution specialized in local contracts, he or she shall give public notice of the designated institutions, details of business affairs, etc. in the Official Gazette or on the website, etc. of the Ministry of the Interior and Safety. <Amended on Jan. 5, 2021> |
| (7) | Except as provided in paragraphs (1) through (6), matters necessary for the designation of an institution specialized in local contracts shall be determined by the Minister of the Interior and Safety. <Amended on Jan. 5, 2021> |
[This Article Newly Inserted on Aug. 9, 2017]
| Article 123-3 (Revocation of Designation of Institutions Specialized in Local Contracts) |
| (1) | The criteria for revoking the designation of an institution specialized in local contracts and suspending business operations referred to in Article 39 (4) of the Act shall be as specified in the attached Table. |
| (2) | If the Minister of the Interior and Safety revokes the designation of an institution specialized in local contracts or orders the suspension of its business operations under Article 39 (4) of the Act, he or she shall give public notice of such fact in the Official Gazette and disclose it on the website of the Ministry of the Interior and Safety. |
[This Article Newly Inserted on Jun. 25, 2019]
| Article 124 (Disclosure of Contract Information) |
| (1) | Pursuant to Article 43 of the Act, the head of a local government or a contracting officer shall disclose the following information on the website of the local government: <Amended on Jan. 15, 2016> |
| 1. | A plan for placing orders (including the name of project, order quantity, size, and budget amount); |
| 2. | Details of tender announcements (including the public announcement of a negotiated contract for which it is required to receive written estimates from at least two persons under the main clause of Article 30 (2)); |
| 3. | Results of bid opening; |
| 4. | The current status of the execution of contracts (including the current status of subcontracts); |
| 5. | Matters regarding changes in the terms and conditions of contracts; |
| 6. | The current status of surveillance, supervision, and inspection; |
| 7. | The current status of payment of prices. |
| (2) | The head of a local government or a contracting officer shall without delay enter the matters referred to in the subparagraphs of paragraph (1) into a designated information processing system or the information system referred to in Article 96-2 (1) of the Local Finance Act. <Amended on Nov. 28, 2014> |
| (3) | When a local government requests the connection of a designated information processing system with the information system provided in Article 96-2 (1) of the Local Finance Act, the administrator of the designated information processing system shall actively cooperate with the local government to enable such connection. <Amended on Nov. 28, 2014> |
| (4) | The contract information provided in paragraph (1) shall be disclosed for at least five years after a contract is completely performed. |
| (5) | If deemed necessary, the Minister of the Interior and Safety may consolidate the contract information under paragraph (1) and disclose it on a separate website, etc. <Newly Inserted on Aug. 19, 2015; Jul. 26, 2017> |
| (6) | Where it is necessary for the consolidated disclosure under paragraph (5), the Minister of the Interior and Safety may request the heads of local governments to provide necessary data, such as contract information under paragraph (1). In such cases, the head of the local government requested to provide the data shall comply with such request unless there is a compelling reason not to do so. <Newly Inserted on Aug. 19, 2015; Jul. 26, 2017> |
| (7) | Notwithstanding paragraph (1), the Minister of Education may separately determine matters to be disclosed about contracts executed by schools (excluding national and private schools) under Article 2 of the Elementary and Secondary Education Act. <Amended on Aug. 19, 2015> |
[This Article Wholly Amended on Feb. 5, 2014]
| Article 125 (Submission of Statements on Results of Contracts) |
| (1) | The head of a local government or a contracting officer shall submit to the Minister of the Interior and Safety (referring to a Mayor/Do Governor in cases of a Si/Gun/Gu) a statement on results of contracts in the forms prescribed by Ordinance of the Ministry of the Interior and Safety within 60 days after the end of a fiscal year. <Amended on Sep. 15, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | The head of a local government or a contracting officer shall enter and manage information on contracts in the information system referred to in Article 96-2 (1) of the Local Finance Act. <Newly Inserted on Sep. 15, 2011; Nov. 28, 2014> |
[This Article Wholly Amended on Jul. 26, 2010]
| Article 125-2 (Prohibition of Use of Contract Information for Purposes Other than Intended Purpose) |
The head of a local government, a contracting officer, and an administrator shall not use information on the restrictions on qualifications for participation of unjust enterprisers in tendering under Article 92, statements on the results of contracts under Article 125, and other information related to contracts for any purpose other than the relevant business affairs. [This Article Newly Inserted on Sep. 15, 2011]
[Previous Article 125-2 moved to Article 125-3 <Sep. 15, 2011>]
| Article 125-3 (Evaluation) |
| (1) | "Supply of goods and services of at least the scale prescribed by Presidential Decree" in Article 42 (1) 1 of the Act means manufacturing goods and providing services, the contract price of which is at least 150 million won. |
| (2) | "Construction works of at least the scale prescribed by Presidential Decree" in Article 42 (1) 2 of the Act means a construction work, the contract price of which is at least five billion won. |
| 1. | Where it is necessary to evaluate the process of executing construction works for a difficult project, such as works for installing a bridge, a subway (including a light rail) project, or a project for the installation of a waste incineration facility; |
| 2. | Where it is virtually impracticable to evaluate quality unless the evaluation is conducted in the course of performing a contract. |
| (4) | If the head of a local government or a contracting officer enters into a contract under paragraph (1) or (2), he or she shall notify the other party to the contract of matters regarding evaluation determined by the Minister of the Interior and Safety, such as methods and criteria for evaluation, within 30 days from the date of entering into the contract. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (5) | If the other party to a contract notified under paragraph (4) intends to undergo evaluation, he or she shall submit to the relevant local government an application for evaluation in the form determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (6) | The head of a local government in receipt of an application for evaluation from the other party to the contract pursuant to paragraph (5) shall conduct evaluation with evaluation committee members comprised of at least seven relevant experts: Provided, That evaluation shall be conducted by a specialized institution determined and publicly notified by the Minister of the Interior and Safety if it is impracticable for the relevant local government to conduct evaluation due to the expertise in evaluation and other factors. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (7) | In cases of evaluation conducted by entrustment to a specialized institution pursuant to the proviso of paragraph (6), Article 6 (3) through (7) shall apply mutatis mutandis to entrustment procedures, etc. |
| (8) | The criteria for evaluation under Article 42 (4) of the Act shall be technology development, improvement of construction methods, etc., and the detailed evaluation criteria by evaluation item and other necessary matters shall be determined by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Aug. 5, 2009]
[Moved from Article 125-2 <Sep. 15, 2011>]
CHAPTER IX CONTRACT AWARDED THROUGH TECHNICAL PROPOSAL TENDERING FOR FINAL DESIGN
| Article 126 (Subject Matter of Application) |
| (1) | The head of a local government or a contracting officer may enter into a contract through technical proposal tendering for final design or technical proposal tendering for schematic design, with regard to a facility construction project for which symbols, monuments, artistic features, etc. are deemed necessary or for a highly sophisticated technology is necessary. |
| (2) | A contract under paragraph (1) shall be governed by this Chapter, and matters not otherwise provided in this Chapter shall be governed by other Chapters of this Decree. |
[Title Amended on Sep. 15, 2011]
| Article 127 (Definitions) |
The terms used in this Chapter are defined as follows: <Amended on Oct. 29, 2008; Dec. 13, 2010; Sep. 15, 2011>
| 1. | The term “technical proposal" means documents through which a bidder proposes a plan for the reduction of construction cost, a plan for the reduction of the construction period, or a plan for the management of a construction project after reviewing design documents, etc. distributed by the authority awarding a contract; |
| 2. | The term "technical proposal tendering for final design“ means tendering where bidders submit tender documents accompanied by a technical proposal under subparagraph 1 which is prepared in accordance with the final design documents and invitation to bid distributed by the authority awarding a contract; |
| 3. | The term "technical proposal tendering for schematic design“ means tendering where bidders submit tender documents accompanied by a technical proposal under subparagraph 1 which is prepared in accordance with the schematic design documents and invitation to bid distributed by the authority awarding a contract. |
[This Article Newly Inserted on Sep. 20, 2007]
| Article 128 (Deliberation on Methods of Tender in Technical Proposal Tendering for Final Design and Technical Proposal Tendering for Schematic Design) |
| (1) | If the head of a local government intends to invite technical proposal tenders for final design or technical proposal tenders for schematic design specified in Article 126, he or she shall undergo deliberation by the relevant local deliberation committee on construction technology with respect to the following matters: <Amended on Nov. 29, 2016> |
| 1. | Matters regarding the methods of tender; |
| 2. | Matters regarding the method of determining a successful bidder under Article 131 (1); |
| 3. | Matters regarding the method of determining a person qualified to submit final design under Article 131 (2). |
| (2) | If the head of a local government intends to undergo deliberation by a local deliberation committee on construction technology pursuant to paragraph (1), he or she shall submit to the local deliberation committee on construction technology a master plan for the performance of construction project prescribed in Article 126 which are scheduled to be performed after the relevant year, according to the following classification: |
| 1. | A construction project for which an order is to be awarded through technical proposal tendering for schematic design: Submission of a master plan for performance after preparing the schematic design documents; |
| 2. | A construction project for which an order is to be awarded through technical proposal tendering for final design: Submission of a master plan for performance after preparing final design documents. |
| (3) | Article 96 (3) through (7) shall apply mutatis mutandis to public announcement, etc. of the methods of tender. |
[This Article Wholly Amended on Aug. 19, 2011]
[Title Amended on Nov. 29, 2016]
| Article 129 (Qualification for Participation in Technical Proposal Tendering for Final Design and Technical Proposal Tendering for Schematic Design) |
Article 13 (1) shall apply mutatis mutandis to technical proposal tendering for final design, and Article 97 (1) shall apply mutatis mutandis to technical proposal tendering for schematic design. <Amended on Sep. 15, 2011> [This Article Newly Inserted on Sep. 20, 2007]
[Title Amended on Sep. 15, 2011]
| Article 130 Deleted. <Sep. 15, 2011> |
| Article 131 (Selection of Successful Bidder in Technical Proposal Tendering for Final Design) |
| (1) | In cases of technical proposal tendering for final design, the head of a local government or a contracting officer shall determine the successful bidder from among the persons selected pursuant to the main clause of Article 133; in such cases, the head of a local government or a contracting officer shall comply with the appropriate method deliberated and chosen by the local deliberation committee on construction technology among the following methods, in consideration of the purpose and characteristics of the construction works, unless there is a compelling reason not to do so: <Amended on Sep. 15, 2011; Nov. 29, 2016> |
| 1. | Determining the lowest tenderer as a successful bidder; |
| 2. | Determining the person whose bid price adjusted by dividing the bid price by his or her technical proposal points is the lowest or the person whose bid price adjusted by dividing his or her technical proposal points by his or her bid price is the highest as a successful bidder; |
| 3. | Determining the person whose points computed by adding a weight to his or her technical proposal points and price points and aggregating the results respectively evaluated are the highest as a successful bidder. |
| (2) | In cases of technical proposal tendering for schematic design, the head of a local government or a contracting officer shall determine a successful bidder from among the persons selected pursuant to Article 135 (1); in such cases, the head of a local government or a contracting officer shall comply with the appropriate method deliberated and chosen by the local deliberation committee on construction technology among the following methods, in consideration of the purpose and characteristics of the construction works, unless there is a compelling reason not to do so: <Amended on Sep. 15, 2011; Nov. 29, 2016> |
| 1. | Determining the lowest tenderer as a person qualified to provide final design; |
| 2. | Determining the person whose bid price adjusted by dividing the bid price by his or her technical proposal points is the lowest or the person whose bid price adjusted by dividing his or her technical proposal points by his or her bid price is the highest as a person qualified to provide final design; |
| 3. | Determining the person whose points computed by adding a weight to his or her technical proposal points and price points and aggregating the results respectively evaluated are the highest as a person qualified to provide final design; |
| 4. | Deleted. <Sep. 15, 2011> |
| (3) | The head of a local government or a contracting officer shall specify the method selected pursuant to paragraph (1) or (2) for determining a successful bidder or a person qualified to provide final design at the time of tender announcement. |
| (4) | Deleted. <Sep. 15, 2011> |
| (5) | For the evaluation of a technical proposal, the head of a local government shall make available for inspection matters necessary for evaluation, such as detailed evaluation items and criteria for scoring, determined in consideration of the details of the subparagraphs of Article 132 (1) or 134 (1) and the examination criteria determined by the Minister of the Interior and Safety, for persons who intend to participate in tendering. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (6) | The head of a local government shall determine the methods and weights for calculating technical proposal points and price points necessary for implementing the method for determining a successful bidder or a person qualified to provide final design under the subparagraphs of paragraphs (1) or (2), the formula for adjusting technology and prices, and other necessary matters, and shall make them available for inspection by persons who intend to participate in tendering. |
[This Article Wholly Amended on Jul. 26, 2010]
[Title Amended on Sep. 15, 2011]
| Article 132 (Procedures for Technical Proposal Tendering for Final Design) |
| (1) | In technical proposal tendering for final design, the head of a local government or a contracting officer shall require bidders to submit a technical proposal that includes the following details: Provided, That, the details thereof may be partially changed, if deemed necessary in light of characteristics of a construction project and other factors: <Amended on Sep. 15, 2011> |
| 1. | A plan for the reduction of construction cost by reviewing the efficiency, etc. in the execution of construction works; |
| 2. | A plan for the improvement of the life cycle cost; |
| 3. | A plan for the reduction of the construction period; |
| 4. | A plan for the management of the construction project; |
| 5. | Deleted; <Sep. 15, 2011> |
| 6. | A priced bill of quantities stating the quantities and unit prices of the goods, reflecting the contents of design documents and the technical proposal; |
| 7. | Other matters required at the time of the tender announcement. |
| (2) | In any of the following cases, the head of a local government or a contracting officer shall request a local deliberation committee on construction technology to deliberate on whether the relevant technical proposal is qualified and to assign points to the proposal. In such cases, the local deliberation committee on construction technology shall review the technical feasibility and notify the head of the relevant local government or the contracting officer of the documents specifying whether the technical proposal is qualified and of the evaluation scores: <Amended on Aug. 9, 2017> |
| 1. | Where he or she receives a technical proposal under paragraph (1); |
| 2. | Where technical proposal tenders for final design are invited but there is only one tenderer after the re-announcement of tender under Article 26, and when he or she receives technical proposals. |
| (3) | If a local deliberation committee on construction technology finds that a technical proposal is insufficient or that the content thereof is unclear in the course of deliberation on a technical proposal under paragraph (2) in light of the master plan for bidding, guidelines, or the details of schematic design, it may request the supplementation thereof. |
[This Article Wholly Amended on Jul. 26, 2010]
[Title Amended on Sep. 15, 2011]
| Article 133 (Determination of Successful Bidder in Technical Proposal Tendering for Final Design) |
Upon receipt of notice under Article 132 (2) in technical proposal tendering for schematic design, the head of a local government or a contracting officer shall select six persons (or all persons notified as qualified, if the number of persons notified as qualified is less than six) in the order of higher technical proposal points and then determine a successful bidder by applying the methods for determining a successful bidder selected under Article 131 (1): Provided, That the tender shall be re-announced if there is not more than one person qualified to provide technical proposal under Article 132 (2) 1. <Amended on Sep. 15, 2011; Aug. 9, 2017> [This Article Newly Inserted on Sep. 20, 2007]
[Title Amended on Sep. 15, 2011]
| Article 134 (Procedures for Technical Proposal Tendering for Schematic Design) |
| (1) | In technical proposal tendering for schematic design, the head of a local government or a contracting officer shall require bidders to submit a technical proposal that includes the following details: Provided, That the details thereof may be partially changed, if deemed necessary in light of characteristics of a construction project and other factors: <Amended on Sep. 15, 2011> |
| 1. | A plan for the reduction of construction cost by reviewing the efficiency, etc. in the execution of construction works; |
| 2. | A plan for the improvement of the life cycle cost; |
| 3. | A plan for the reduction of the construction period; |
| 4. | A plan for the management of the construction project; |
| 5. | Deleted; <Sep. 15, 2011> |
| 6. | Other matters required at the time of the tender announcement. |
| (2) | The head of a local government or a contracting officer shall require only the persons selected as qualified to provide final design under Article 131 (2) to submit final design documents and shall require them to attach the following drawing and documents to the final design documents: <Amended on May 22, 2014> |
| 1. | An explanatory note in detail regarding the final design; |
| 3. | A priced bill of quantities stating the unit prices and quantities; |
| 4. | Documents describing other matters for reference. |
| (3) | In any of the following cases, the head of a local government or a contracting officer shall request the local deliberation committee on construction technology to deliberate on whether the technical proposal or final design documents are appropriate and to assign points for such proposal or design. In such cases, the local deliberation committee on construction technology shall review the technical feasibility and notify the head of the relevant local government or the contracting officer of the documents specifying whether the technical proposal or final design documents are qualified and of the evaluation scores: <Amended on Sep. 13, 2016> |
| 1. | Where he or she receives a technical proposal or final design documents under paragraphs (1) and (2); |
| 2. | Where an order is to be awarded through technical proposal tenders for final design but there is only one tenderer after the re-announcement of tender under Article 26, and when he or she receives technical proposals or final design documents. |
| (4) | If a local deliberation committee on construction technology finds that drawings and documents attached to a technical proposal or final design documents are insufficient or that the content thereof is unclear in the course of deliberation on a technical proposal or final design documents under paragraph (3) in light of the master plan for bidding, guidelines, or the details of schematic design, it may request the supplementation thereof. |
[This Article Wholly Amended on Jul. 26, 2010]
[Title Amended on Sep. 15, 2011]
| Article 135 (Selection of Successful Bidder in Technical Proposal Tendering for Schematic Design) |
| (1) | Upon receipt of notice under Article 134 (3) in technical proposal tendering for schematic design, the head of a local government or a contracting officer shall select six persons (or all persons notified as qualified, if the number of persons notified as qualified is less than six) in the order of higher technical proposal points and then determine a person qualified to provide final design by applying the methods for determining a person qualified to provide final design selected under Article 131 (2): Provided, That the tender shall be re-announced if there is not more than one person qualified to provide technical proposal under Article 134 (3) 1. <Amended on Sep. 15, 2011; Sep. 13, 2016> |
| (2) | Upon receipt of a notice that the relevant final design is qualified from the local deliberation committee on construction technology under Article 134 (3), the head of a local government or a contracting officer shall select the person who has submitted the final design documents as a successful bidder. <Amended on Sep. 15, 2011> |
| (3) | Article 100 (3) through (8) shall apply mutatis mutandis to the consultation on price adjustment, re-announcement of tender, etc. in the process of selecting a successful bidder in technical proposal tendering for schematic design. <Amended on Sep. 15, 2011> |
[This Article Wholly Amended on Jul. 26, 2010]
[Title Amended on Sep. 15, 2011]
| Article 135-2 (Reimbursement of Cost for Preparation of Tender Documents in Technical Proposal Tendering) |
| (1) | The head of a local government or a contracting officer may partially reimburse all or part of the following persons for costs for preparing their proposals within the budget: |
| 1. | A person who is not determined as a successful bidder from among those selected under Article 133 or 135 (1); |
| 2. | A person who has participated in technical proposal tendering which is revoked due to a cause attributable to the authority awarding the contract. |
| (2) | Matters necessary for the criteria and procedures, etc. for reimbursement under paragraph (1) shall be determined by the Minister of the Interior and Safety. <Amended on Jul. 26, 2017> |
[This Article Newly Inserted on Aug. 19, 2015]
| Article 136 (Deliberation by Technical Advisory Committee Following Entrustment of Contracting Duties) |
Article 100-2 shall apply mutatis mutandis to contracts under this Chapter. [Title Amended on Sep. 15, 2011]
[Title Amended on May 22, 2014]
| Article 137 (Adjustment of Contract Price Following Design Change) |
Article 74 shall apply mutatis mutandis to a contract for a construction project awarded through technical proposal tendering for final design, with respect to the adjustment of a contract price following a design change, and Article 103 shall apply mutatis mutandis to a contract for a construction project awarded through technical proposal tendering for schematic design. [Title Amended on Sep. 15, 2011]
| (1) | After completion of the final inspection on a construction project under this Chapter, the head of a local government or a contracting officer may organize an evaluation team and conduct an evaluation on the appropriateness of the method for awarding the construction project, the process of executing construction works, performance records, effects, etc. of the construction project. |
| (2) | Matters necessary for the composition and operation of an evaluation team under paragraph (1) and other matters necessary for evaluation shall be determined by the head of each local government. |
[This Article Newly Inserted on Sep. 15, 2011]
CHAPTER X SUPPLEMENTARY PROVISIONS
| Article 139 (Processing of Personally Identifiable Information) |
| (1) | The head of a local government (including those to whom the relevant authority is delegated or entrusted) or a contracting official may process data containing resident registration numbers or passport numbers prescribed in subparagraph 1 or 2 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if unavoidable to perform the following business affairs: <Amended on Jun. 25, 2019> |
| 1. | Verifying the qualification requirements for participation in tendering under Article 13; |
| 3. | Tendering for construction works, manufacture or purchase of goods, services, etc. under Articles 15 and 16; |
| 4. | Notifying persons qualified to participate in tendering of participation in tendering under Articles 20 and 21; |
| 5. | Designating persons eligible for competitive procedure with negotiation under Article 23; |
| 6. | Examining the ability to perform a contract under Article 42; |
| 7. | Guaranteeing the performance of a contract under Article 51; |
| 8. | Payment, etc. of a defect bond under Article 71; |
| 9. | Restricting qualifications for participation of unjust enterprisers in tendering under Article 92; |
[This Article Newly Inserted on Aug. 6, 2014]
| Article 140 (Re-Examination of Regulation) |
The Minister of the Interior and Safety shall examine the appropriateness of cases where the qualification of bidding participants may be restricted and matters subject to restrictions under Article 20 (1) every two years, counting from the base date of January 1, 2023 (referring to the period that ends on the day before the base date of every second year), and shall take measures, such as making improvements. [This Article Wholly Amended on Mar. 7, 2023]
ADDENDA <Presidential Decree No. 19239, Dec. 30, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2006.
Article 2 (Effective Period)
Article 3 (Transitional Measures concerning Execution of Contracts)
Contracting duties and legal relationship, procedures, etc. related to contracts for which a tender announcement is made, tenders are submitted, or a successful bidder is determined, or contracts are executed under the previous Enforcement Decree of the Local Finance Act before this Decree enters into force shall be governed by that Decree: Provided, That Articles 73 (1) and (5) and 74 (3) 3, and the proviso of Article 103 (2) 2 shall also apply to contracts executed before this Decree enters into force. Article 4 Omitted.
Article 5 (Relationship to Other Statutes or Regulations)
Where the provisions of the previous Enforcement Decree of the Local Finance Act are cited in other statutes or regulations with respect to a contract with a local government as at the time this Decree enters into force, and if this Decree includes any provisions corresponding thereto, this Decree or the corresponding provisions of this Decree shall be deemed cited respectively.
ADDENDA <Presidential Decree No. 19494, May 30, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 19805, Dec. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 19806, Dec. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2007.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20283, Sep. 20, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Changes in Methods for Guaranteeing Performance of Contract)
The amended provisions of Article 51 (2) shall also apply to contracts executed before this Decree enters into force. Article 3 (Applicability to Payment of Prices)
The amended provisions of Article 67 (1) shall begin to apply to invoices filed after this Decree enters into force. Article 4 (Applicability to Restrictions on Qualification for Participation of Unjust Enterprisers in Tendering)
The amended provisions of Article 92 (1) 4-2, 6, 10, 11, 14, 14-2, and 17 shall begin to apply where a cause arises to place restrictions after this Decree enters into force. Article 5 (Transitional Measure concerning Execution of Contracts)
The tendering procedures, the determination of a successful bidder, and the execution of a contract after this Decree enters into force according to the tender announcement made before this Decree enters into force and the contracts executed after this Decree enters into force with a successful tender determined in a tendering procedure conducted before this Decree enters into force shall be governed by the previous provisions: Provided, That the amended provisions of Article 73 (6) shall also apply to contracts for a construction project that has not been completely performed as at the time this Decree enters into force, and even if each material price inflation of particular specifications is not less than 15/100; and September 20, 2007 shall be deemed the date of execution of the contract and the date of tender if a contract was executed before September 20, 2007, while September 20, 2007 shall be deemed the date of tender, if a tender was submitted before September 20, 2007. <Amended on Jan. 13, 2009>
ADDENDA <Presidential Decree No. 20789, May 21, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 26, 2008.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21098, Oct. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21214, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21231, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2009.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21259, Jan. 13, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Effective Period)
The amended provisions of Article 25 (1) 2-2 shall remain effective until October 31, 2009. Article 3 (Applicability to Adjustment of Contract Price Due to Change in Exchange Rate)
The amended provisions of Article 73 (7) shall also apply to any contract that is being performed as at the time this Decree enters into force, for which there are any factors for the adjustment of contract prices under Article 73 (1) before this Decree enters into force, as a result of the change in exchange rates.
ADDENDUM <Presidential Decree No. 21312, Feb. 6, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21565, Jun. 26, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 30, 2009: Provided, That ... <omitted> ... Article 3 of the Addenda shall enter into force on the date of its promulgation. Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21590, Jun. 30, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2009: Provided, That the amended provisions of Articles 8 and 9 shall enter into force on January 1, 2010. Article 2 (Effective Period Following Amendment to the Enforcement Decree of the Farmland Act) | (1) | The amended provisions of the column listed in subparagraph 46 of attached Table 2 of the Enforcement Decree of the Farmland Act shall remain effective until June 30, 2011. |
| (2) | The amended provisions of the column listed in subparagraph 46 of attached Table 2 of the Enforcement Decree of the Farmland Act shall begin to apply to permission for diversion of farmland (including permission for modification, and authorization or permission by which permission for diversion of farmland or permission for modification is deemed granted pursuant to other statutes or regulations; hereafter in this paragraph the same shall apply) applied for, or a report on diversion of farmland (including a report on modification; hereafter in this paragraph the same shall apply) filed after this Decree enters into force, and shall also apply to permission for diversion of farmland or a report on diversion of farmland applied for or filed by June 30, 2011. |
Article 3 (Applicability Following Amendment to the Enforcement Decree of the Tourism Promotion Act) Article 5 (Transitional Measures Following Amendment to the Enforcement Decree of the Employment Insurance Act) Article 6 (Transitional Measures Following Amendment to Enforcement Decree of the Act on the Management and Promotion of Real Estate Development Business) The previous provisions shall apply to administrative fines for acts committed before this Decree enters into force.
Article 7 (Applicability Following Amendment to the Enforcement Decree of the New Harbor Construction Promotion Act) The amended provisions of the latter part of Article 9 (5) of the Enforcement Decree of the New Harbor Construction Promotion Act shall apply to persons who have received an extension of the period of applying for approval of a plan to implement a new harbor construction project pursuant to the previous provisions in whose case such extended period has not yet expired as at the time this Decree enters into force; and the period for application shall be deemed extended once pursuant to those amended provisions. The previous provisions shall apply to administrative fines for acts committed before this Decree enters into force.
Article 9 (Applicability Following Amendment of the Enforcement Decree of the Sewerage Act)
ADDENDA <Presidential Decree No. 21662, Aug. 5, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 7, 2009.
Article 2 (Effective Period)
The amended provisions of Article 88 (3) 2 shall remain effective until December 31, 2010: Provided, That the amended provisions of Article 88 (3) 2 shall apply to projects concerning which the tender announcement is made by December 31, 2010 until such projects are completed. Article 3 (Applicability to Compulsory Regional Joint Contracts)
The amended provisions of Article 88 (3) shall apply to tender announcement made after this Decree enters into force.
ADDENDA <Presidential Decree No. 21692, Aug. 18, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on Aug. 23, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 21698, Aug. 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on Aug. 23, 2009.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21834, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on Nov. 22, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21852, Nov. 26, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2010. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22303, Jul. 26, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 25 (1) 5, 30 (1), 78-2, and 91 shall enter into force on the date of its promulgation, and the amended provisions of Article 51 (1) through (3) shall enter into force on January 1, 2011. Article 2 (General Applicability)
This Decree shall apply to contracts for which the tender announcement is made after this Decree enters into force.
Article 3 (Applicability to Additional Payment of Contract Deposit)
The amended provisions of Article 91 (4) shall begin to apply where the amount of liquidated damages reaches an amount equivalent to the contract deposit under Article 51 (1) after the amended provisions of Article 91 (4) enter into force pursuant to the proviso of Article 1 of the Addenda. Article 4 (Applicability to Restrictions on Qualifications for Participation of Unjust Enterprisers in Tendering)
The amended provisions of Article 92 (1) shall begin to apply where a cause arises to place restrictions after this Decree enters into force. Article 5 (Special Cases concerning Preparation of Priced Bill of Quantities)
"30 billion won" in the amended provisions of Article 15 (7) 1 (a) and (b) shall be construed as "100 billion won" until December 31, 2010 and as "50 billion won" from January 1 to December 31, 2011. Article 6 (Special Cases concerning Negotiated Contract for Products Manufactured with Technology)
Notwithstanding the amended provisions of Article 25 (1) 6 (d) (i), such products manufactured with technology developed by small and medium enterprises subject to a preferential purchase as publicly notified by the Administrator of the Small and Medium Business Administration under the previous provisions of Article 25 (1) 6 (g) may be manufactured or purchased under a negotiated contract from the relevant producer for three years from this Decree enters into force. Article 7 (Transitional Measures concerning Tendering or Contracts)
The previous provisions shall apply to contracts for which a tender announcement is made or contracts executed as at the time this Decree enters into force.
Article 8 (Transitional Measures concerning the Citation of Other Statutes or Regulations)
"Bank" in the amended provisions, with the exception of the subparagraphs, of Article 37 (2) and the amended provisions of subparagraph 5 of that paragraph shall be construed as "financial institution", and "foreign bank" in the amended provisions of subparagraphs 1 and 5 of that paragraph shall be construed as "foreign financial institution" until November 17, 2010. Article 9 Omitted
ADDENDA <Presidential Decree No. 22525, Dec. 13, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Presidential Decree No. 22626, Jan. 17, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 22638, Jan. 26, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 5, 2011. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23051, Jul. 28, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date the Korea-Peru Free Trade Agreement comes into effect.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23134, Sep. 15, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 6-2, 8, 14, 15, 25, 30, 37 (2) 4 (q), 43, 67, 73, 74 (2), 92, 100-2, 108, and 110 shall enter into force on the date of its promulgation. Article 2 (General Applicability)
This Decree shall begin to apply to contracts for which tender announcement is made or negotiated contracts are executed after this Decree enters into force.
Article 3 (Applicability to Subject Matter of Objection)
The amended provisions of Article 110 (2) shall begin to apply where grounds for objection arise after this Decree enters into force. Article 4 (Transitional Measures Following Abolition of Negotiated Contracts with Corporations Established pursuant to Special Act)
| (1) | Notwithstanding the amended provisions of Article 25 (1) 8 (c), the head of a local government or a contracting officer may enter into a negotiated contract until December 31, 2015, pursuant to the previous provisions of Article 25 (1) 8 (c). |
| (2) | If the head of a local government or a contracting officer enters into a negotiated contract pursuant to paragraph (1), he or she shall verify the qualification requirements for the person eligible for the negotiated contract and whether he or she can directly produce goods or deliver services under the negotiated contract and services, notwithstanding the amended provisions, with the exception of the subparagraphs, of Article 25 (2). |
| (3) | Notwithstanding the amended provisions of Article 30 (1), the previous Article 30 (1) shall apply where the head of a local government or a contracting officer enters into a negotiated contract under paragraph (1). |
Article 5 Omitted.
ADDENDA <Presidential Decree No. 23267, Oct. 28, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 29, 2011.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23282, Nov. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 23313, Nov. 23, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 23337, Dec. 2, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date the Korea-U.S. Free Trade Agreement comes into effect.
Articles 2 and 3 Omitted.
ADDENDA<Presidential Decree No. 23718, Apr. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 15, 2022. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 23808, May 23, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 25 (1) 8 (f) shall enter into force on July 27, 2012. Article 2 (Transitional Measure concerning Negotiated Contract with Facilities for Welfare of Disabled Persons)
Negotiated contracts executed with a facility or organization for the welfare of persons with disability before July 27, 2012 shall be governed by the previous provisions, notwithstanding the amended provisions of Article 25 (1) 8 (f).
ADDENDA <Presidential Decree No. 24076, Aug. 31, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 2, 2012. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24130, Oct. 8, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 24425, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended by Article 6 of this Addenda, the amendments to the Presidential Decrees promulgated before the date this Decree enters into force, but the dates on which they enter into force have not yet arrived, shall enter into force on the dates the respective Presidential Decrees enter into force. Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24860, Nov. 20, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 14 of Article 36 and Article 88 shall enter into force on November 23, 2013. Article 2 (General Applicability)
This Decree shall begin to apply contracts for which tender announcement is made or negotiated contracts are executed after this Decree enters into force.
Article 3 (Applicability to Restrictions on Qualifications for Participation of Unjust Enterprisers in Tendering)
The amended provisions of the proviso of Article 92 (10) shall also apply where the other party to a contract who has entered into a long-term continuing contract before this Decree enters into force enters into an annual contract after this Decree enters into force.
ADDENDA <Presidential Decree No. 25140, Feb. 5, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 7, 2014: Provided, That the amended provisions of Article 4 (1) 3 and 4 shall enter into force on the date when the Revised Agreement on Government Procurement takes its effect upon the Republic of Korea. Article 2 (General Applicability)
This Decree shall begin to apply contracts for which tender announcement is made or negotiated contracts are executed after this Decree enters into force.
Article 3 (Applicability to Restrictions on Qualifications for Participation of Unjust Enterprisers in Tendering)
The amended provisions of Article 70 (1) 3 and 4 shall begin to apply where such a reason for restriction on qualifications for participation in tendering arises after this Decree enters into force.
ADDENDA <Presidential Decree No. 25358, May 22, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 23, 2014.
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended pursuant to Article 5 of the Addenda, the amendments to the Presidential Decrees promulgated before this Decree enters into force, but the dates on which they enter into force have not yet arrived, shall enter into force on the dates the respective Presidential Decrees enter into force. Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25770, Nov. 24, 2014>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 25781, Nov. 28, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 29, 2014. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 26491, Aug. 19, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall begin to apply to contracts for which tender announcement is made or negotiated contracts are executed after this Decree enters into force.
Article 3 (Applicability to Restrictions on Qualifications for Participation of Unjust Enterprisers in Tendering)
The amended provisions of Article 92 (11) shall begin to apply where a reason for restriction on qualifications for participation in tendering arises after this Decree enters into force. Article 4 (Applicability to Subject Matters of Imposition of Penalty Surcharges and Criteria Therefor)
The amended provisions of Article 92-2 (1) 5 and the proviso of paragraph (2) of that Article shall also apply to violations committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 26899, Jan. 15, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall begin to apply to contracts for which tender announcement is made or negotiated contracts are executed after this Decree enters into force.
Article 3 (Applicability to Negotiated Contracts)
The amended provision of Article 25 (1) 5 (a) shall begin to apply to the submission of a written estimate required under Article 30 after this Decree enters into force. Article 4 (Applicability to Imposition of Penalty Surcharges)
The amended provision of Article 92-2 (4) shall begin to apply where grounds for imposing penalty surcharges arise after this Decree enters into force. Article 5 (Applicability to Term of Office of Members of Contract Deliberation Committee)
The amended provisions of Article 106 (4) shall also apply to a member commissioned as the member of a contract deliberation committee at the time this Decree enters into force. In such cases, the initial date of the term of office shall be based on the date he or she is commissioned. Article 6 (Transitional Measures concerning Determination of Successful Bidder in Competitive Tendering)
Notwithstanding the amended provisions of the proviso of Article 14 (1) and Articles 15 (7) 1 (b), 42 (1) 1, 42-2, 42-3, 48 (1) 3, 92 (1) 10 and 21, and 99 (6), the previous provisions shall apply where a tender announcement is made before this Decree enters into force. Article 7 (Transitional Measure concerning Deadline for Payment of Price)
The previous provisions shall apply where an invoice was submitted under the previous provisions before this Decree enters into force, notwithstanding the amended provisions of Article 67 (1) and (4). Article 8 (Transitional Measures concerning Composition of Contract Deliberation Committee)
| (1) | A contract deliberation committee shall elect the chairperson among and by its members pursuant to the amended provisions, with the exception of the subparagraphs, of Article 106 (2) by December 31, 2016. |
| (2) | Members commissioned pursuant to the previous provisions of Article 106 (2) 5 as at the time this Decree enters into force shall remain in office during the remaining term of his or her office. |
| (3) | The chairperson of a contract deliberation committee as at the time this Decree enters into force shall be deemed appointed by the head of a local government as a member of the committee pursuant to the amended provisions of Article 106 (2) 7, and shall remain in office until a new chairperson is elected pursuant to paragraph (1). |
ADDENDA <Presidential Decree No. 26928, Jan. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 25, 2019.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26975, Feb. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 12, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on Sep. 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27401, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27491, Sep. 13, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 56 (1) 2 shall enter into force on February 4, 2019. Article 2 (Applicability to Change of Contracting Methods and Procedures)
| (1) | The amended provisions of Article 15 (1), Article 25 (1) 4 (j), the proviso of Article 42-3 (1), paragraph (2) of that Article, the provisions, with the exception of the subparagraphs, of Article 48 (1), subparagraph 3 of that paragraph, and Article 60 (1) 10 and paragraph (2) of that Article shall begin to apply to contracts for which tender announcement is made or a negotiated contract is executed after this Decree enters into force. |
| (2) | The amended provisions of Article 56 (1) 2 shall begin to apply to contracts for which tender announcement is made or a negotiated contract is executed after the enforcement date provided in the proviso of Article 1 of the Addenda. |
Article 3 (Applicability to Selection of Party to Negotiated Contract after Re-Announcement of Turnkey Tendering)
The amended provisions of the latter part of Articles 26 (1), 98 (4) 3, and 134 (3) shall begin to apply to re-announcements made after this Decree enters into force. Article 4 (Applicability to Guaranteeing Performance of Contract)
The amended provisions of the proviso of Article 51 (2) shall also apply where it is intended to change the methods of guaranteeing the performance of contracts executed before this Decree enters into force, after the date this Decree enters into force. Article 5 (Applicability to Reduction of Goods Subject to Exemption from Inspection)
The amended provisions of the proviso, with the exception of the subparagraphs, of Article 64-2 (1) shall begin to apply where a party to a contract performs the contract after this Decree enters into force. Article 6 (Applicability to Imposition of Penalty Surcharges)
The amended provision of Article 92-2 (1) 6 shall begin to apply where grounds for imposing penalty surcharges arise after this Decree enters into force. Article 7 (Transitional Measures concerning Fields of Construction among Contracts by Negotiations)
The previous provisions shall apply where a tender announcement is made before this Decree enters into force, notwithstanding the amended provisions of Article 15 (2) and (6), Article 43 (1), (5), (8), (12), and (13), Article 44 (1) 8, and the proviso of Article 96 (1).
ADDENDA <Presidential Decree No. 27524, Sep. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 27621, Nov. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 30, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27622, Nov. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 30, 2016.
Article 2 (Applicability to Details of Tender Announcement)
The amended provision of subparagraph 19 of Article 36 shall begin to apply where the tender announcement is made after this Decree enters into force. Article 3 (Transitional Measures concerning Settlement of Rough Estimate Contract)
Where a rough estimate contract is executed under Article 27 (1) of the Act before this Decree enters into force, the previous provisions shall apply to the settlement thereof, notwithstanding the amended provisions of Article 86 (1). Article 4 (Transitional Measures concerning Expansion of Subject Matters of Deliberation by Local Deliberation Committee on Construction Technology)
Notwithstanding the amended provisions of Articles 96 (1), (3) and (4), 98-2 (1) and (2), 128 (1), and 131 (1) and (2), the previous provisions shall apply to the construction works for which a master plan for the performance of a construction project has been submitted under Article 96 (2) or Article 128 (2) before this Decree enters into force. Article 5 Omitted.
ADDENDA <Presidential Decree No. 27807, Jan. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 28, 2017.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended by Article 8 of the Addenda, the amendments to the Presidential Decrees promulgated before the date this Decree enters into force, but the dates on which they enter into force have not yet arrived, shall enter into force on the dates the respective Presidential Decrees enter into force. Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 28235, Aug. 9, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Criteria for Restriction in Cases of Using Past Records of Performance of Manufacture of Goods as Criteria for Restrictive Tendering)
| (1) | The amended provisions of the latter part of Article 20 (1) 3 and the latter part of subparagraph 5 of that paragraph shall begin to apply where a tender announcement is made after this Decree enters into force. |
Article 3 (Applicability to Procedures for Negotiated Contracts Following Re-Announcement of Tender in Technical Proposal Tendering for Final Design)
The amended provisions of the latter part of Articles 26 (1) and 132 (2) shall begin to apply where re-announcement of tender is made after this Decree enters into force. Article 4 (Transitional Measures concerning Determination of Successful Bidder in Tenders Which Create Encumbrances)
Cases where a tender announcement is made before this Decree enters into force shall be governed by the previous provisions, notwithstanding the amended provisions of Articles 42 (1) 2, 42-3 (1) 3, and 48 (1) 4.
ADDENDA <Presidential Decree No. 28586, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 29059, Jul. 24, 2018>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 29360, Dec. 11, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 13, 2018. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 29421, Dec. 24, 2018>
This Decree shall enter into force on January 1, 2019.
ADDENDA <Presidential Decree No. 29896, Jun. 25, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 25, 2019: Provided, That the amended provisions of Articles 8 (2) 3, 25 (1) 6 (d) (viii), 35 (5) and (6), 42 (2), 44-2, and 110 shall enter into force three months after the date of its promulgation. Article 2 (Applicability to Determination of Successful Bidder in Competitive Tendering Which Create Encumbrances)
The amended provisions of Article 42 (2) shall begin to apply where a tender announcement is made after the enforcement date provided in the proviso of Article 1 of the Addenda. Article 3 (Applicability to Adjustment of Contract Prices)
The amended provisions of Articles 73 (8) and 75 (2) shall also apply where the budget price is prepared or a contract price is determined as at the time this Decree enters into force. Article 4 (Applicability to Imposition of Liquidated Damages)
The amended provisions of Article 90 (3) shall begin to apply where liquidated damages arise because the contract period expires after this Decree enters into force. Article 5 (Applicability to Raising Objection)
The amended provisions of Article 110 (1) 1 through 4 shall also apply where any reason for raising an objection occurs before the enforcement date provided in the proviso of Article 1 of the Addenda and the period for raising an objection provided in Article 34 (2) of the Act does not elapse as on the enforcement date provided in the proviso of Article 1 of the Addenda. Article 6 (Transitional Measures concerning Products for Which Negotiated Contract Is Permissible)
Notwithstanding the amended provisions, with the exception of Article 25 (1) 6 (d) (i) through (viii), the previous provisions shall apply where the effective period of the certification or designation of the relevant product or goods exceeds three years and three years have passed from the date the effective period of the certification or designation commences as at the time this Decree enters into force. Article 7 (Amendments to Other Statutes or Regulations)
ADDENDUM <Presidential Decree No. 30079, Sep. 17, 2019>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 30337, Jan. 7, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 30834, Jul. 14, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 36 shall enter into force two months after the date of its promulgation. Article 2 (Applicability to Cases for Which Negotiated Contract Is Permissible)
The amended provisions of Article 8 (2) 1, subparagraph 7 of Article 22, Article 25 (1) 1, subparagraph 6 (d) (ix) of that paragraph, paragraph (3) of that Article, and Article 30 (2) shall apply to negotiated contracts executed after this Decree enters into force. Article 3 (Applicability to Re-Announcement of Tender and Negotiated Contracts)
The amended provisions of Articles 26 (3) and 30 (1) 1 shall also apply where a tender announcement is made before this Decree enters into force and then a negotiated contract is executed after this Decree enters into force. Article 4 (Applicability to Tender Bond)
The amended provisions of the proviso of Article 37 (1) shall begin to apply where a tender announcement is made after this Decree enters into force. Article 5 (Applicability to Payment of Contract Deposit and Performance Guarantee)
The amended provisions of the proviso of Article 51 (1) 1, the proviso of subparagraph 2 of that paragraph, and the proviso of paragraph (5) of that Article shall also apply where a tender announcement is made before this Decree enters into force and then a contract deposit is paid after this Decree enters into force. Article 6 (Applicability to Warranty Period)
The amended provisions of Article 69 (1) shall begin to apply where a contract is executed after this Decree enters into force. Article 7 (Transitional Measures concerning Inspection)
The previous provisions shall apply where the other party to a contract gives notice of the full performance of the relevant contract before this Decree enters into force, notwithstanding the amended provisions of Article 64 (1). Article 8 (Transitional Measures concerning Payment of Price)
Notwithstanding the amended provisions of Article 67 (1), the previous provisions shall apply where the other party to a contract submits an invoice for the payment of a contract price before this Decree enters into force.
ADDENDA <Presidential Decree No. 31053, Sep. 29, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 1, 2020.
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 31136, Nov. 3, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measure concerning Negotiated Contract for Innovative Product)
Where a written estimate for a negotiated contract for a product has been submitted under previous Article 25 (1) 6 (d) (viii) before this Decree enters into force, a negotiated contract for the relevant product may be concluded pursuant to Article 25 (1), notwithstanding those amended provisions.
ADDENDA <Presidential Decree No. 31220, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 31221, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 31220, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 31379, Jan. 5, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability to Requirements for Designation or Entrustment)
This Decree shall begin to apply where the procedures for designation or entrustment commence for purposes of designation or entrustment under statutes or regulations to be amended under this Decree after this Decree enters into force.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 31429, Feb. 2, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 5, 2021.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 31445, Feb. 17, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 21 Omitted.
ADDENDA <Presidential Decree No. 31448, Feb. 17, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 36 Omitted.
ADDENDA <Presidential Decree No. 31986, Sep. 14, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 32223, Dec. 16, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 13, 2022. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 32370, Jan. 25, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2022.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 32557, Mar. 25, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 25, 2022. (Proviso Omitted)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 32733, Jun. 28, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 29, 2022.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 32910, Sep. 20, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 18 (4) and 25 (1) 5 and paragraph (3) of that Article shall enter into force on January 1, 2023. Article 2 (General Applicability)
This Decree shall begin to apply to contracts for which a tender announcement is to be made or a negotiated contract is to be executed after this Decree enters into force.
Article 3 (Applicability to Two-Stage Bidding)
The amended provisions of Article 18 (4) shall begin to apply where a tender announcement is made for a two-stage bidding under Article 18 (1) or (3) after the enforcement date provided in the proviso of Article 1 of the Addenda. Article 4 (Transitional Measures concerning Execution of Negotiated Contract)
Notwithstanding the amended provisions of Article 25 (3), previous Article 25 (3) shall apply where the procedure for executing a negotiated contract is in progress as of the enforcement date provided in the proviso of Article 1 of the Addenda. Article 5 (Transitional Measures concerning Criteria for Examination on Ability to Perform Contracts)
Where a Mayor/Do Governor is in the process of consultation with the Minister of the Interior and Safety pursuant to previous Article 42 (4), the criteria for examining the ability to perform a contract as at the time this Decree enters into force shall be governed by previous Article 42 (4), notwithstanding the amended provisions of Article 42 (4) through (6).
ADDENDA <Presidential Decree No. 33198, Jan. 3, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 5, 2023.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 33316, Mar. 7, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of the proviso and the subparagraphs of Article 92 (10) shall enter into force six months after the date of its promulgation. Article 2 (Applicability to Exemption from Payment of Tender Bonds)
The amended provisions of Article 37 (3) 5 (h) and (n) shall begin to apply where a tender announcement is made after this Decree enters into force. Article 3 (Applicability to Payment of Contract Deposit for Guaranteeing Performance of Contract)
The amended provisions of Article 51 (1) 1 shall begin to apply where a contract for construction works is entered into after this Decree enters into force. Article 4 (Applicability to Measures for Recording Contract Deposit as Revenues of Local Government)
The amended provisions of Article 54 (1) 1 shall also apply where a contract was executed before this Decree enters into force and any cause for recording a contract deposit as revenues of a local government arises after this Decree enters into force. Article 5 (Applicability to Restrictions on Qualifications for Participation of Unjust Enterprisers in Tendering)
The amended provisions of the proviso of and the subparagraphs of Article 92 (10) shall also apply where the tender announcement is being made or contract procedures are in progress as of the enforcement date provided in the proviso of Article 1 of the Addenda.
ADDENDUM <Presidential Decree No. 33321, Mar. 7, 2023>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 33382, Apr. 11, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 5, 2023.
Articles 2 through 5 Omitted.