Korea Rail Network Authority Revises Construction, Service, and Subcontracting Contract Standards... "Achieving National Policy Goals"

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Korea Rail Network Authority is revising the standards for construction, service, and subcontracting contracts. The revision of contract standards focuses on achieving government national agenda goals such as ensuring safety, promoting mutual growth, and regulatory reform.

On the 6th, the Rail Network Authority announced that to secure safety in the railway sector through the revision of contract standards, the starting point for applying penalty points to subcontractors causing accidents will be adjusted from the time of accident occurrence to the time the accident is recognized, preventing delays or concealment in accident reporting.

Additionally, when evaluating construction projects worth over 20 billion KRW, if local small and medium-sized enterprises do not participate, the 10% penalty points temporarily imposed until this year will be maintained to activate local company participation. Also, a bonus of 0.5 points will be awarded when startup companies participate in bidding to discover innovative companies in the railway sector.

The revision of contract standards also includes omitting procedures such as original document verification and official seal stamping, which have been conventionally required, to prevent unnecessary administrative labor waste.

Kim Han-young, Director of the Rail Network Authority, said, “The Rail Network Authority will strive for all departments within the organization to become one team to achieve the government’s national agenda goals.”