Haman-gun Implements 'Total Volume System for Private Contracts' to Ensure Trust and Fairness in Contract Administration

Preventing Bias in Single-Person Contract Construction Projects Starting Next Year

Haman-gun, Gyeongnam Province announced on the 27th that it will implement the ‘Total Volume System for Private Contracts’ starting in 2024 to ensure the reliability and fairness of contract administration.

The Total Volume System for Private Contracts is designed to prevent the concentration of private contracts among a few companies and to expand opportunities for public projects by setting an annual contract limit per company to discover competitive firms.

Haman County Office.

After analyzing past contract performance and reviewing the introduction of a system suitable for the county’s circumstances, the county decided to apply the Total Volume System only to private contracts for single-person projects with an estimated price of 20 million KRW or less, excluding disaster repair works requiring urgent restoration such as natural disasters.

The county office sets the annual limit at 200 million KRW per company, affiliated agencies and business offices set the limit at 100 million KRW per company per contracting office, and eup/myeon offices set the limit at 3 contracts per company per eup/myeon. However, for eup/myeon offices, projects with an estimated price below 10 million KRW are exempt from the total volume system limit.

A county official stated, “To ensure the Total Volume System for Private Contracts is quickly established, we will check the contract status quarterly and notify each department. After one year of implementation, we will reflect on areas for improvement to operate the system fairly and equitably.”