The Gyeonggi Provincial Office of Education has established criteria for calculating small-scale construction costs to reflect the actual expenses of small-scale school facility projects.
On the 28th, the Office announced that since September, it has formed a consultative body with the Facilities Department, Contract Department, Education Support Offices, and the Korea Construction Association (Gyeonggi Chapter) to develop standards aimed at addressing disadvantages faced by small and medium-sized construction companies.
Small-scale construction projects are classified based on estimated prices into comprehensive projects under 400 million KRW, specialized projects under 200 million KRW, and other projects under 160 million KRW in accordance with relevant construction laws.
The criteria for calculating small-scale construction costs established by the Office include ▲lack of unit price application methods ▲non-reflection of equipment and transportation costs according to site conditions ▲reduced application of labor costs.
An official from the Office stated, "In response to the losses incurred by local small and medium-sized construction companies and the recommendations for system improvement by the Anti-Corruption and Civil Rights Commission, we have developed calculation standards suited to the conditions in the Gyeonggi region. We expect that applying surcharges to small-scale items below the standard unit cost, reflecting equipment and transportation costs according to site conditions, and applying labor surcharges based on working hours will help alleviate difficulties faced by relatively disadvantaged small-scale construction sites."
The report on the construction cost calculation criteria can be accessed through the Facilities Department's integrated data room on the Office of Education's website.
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