Lotte Construction Reflects 'Safety Capability' Grade in Bidding System

Differentiated Scores Based on Bid Amount and Safety Capability Grade
Expected to Support Supplementing Lowest Bid Award System and Enhancing Safety

Lotte Construction announced on the 15th that, following its introduction of a bidding method reflecting safety capability ratings in the partner company bidding system?the first among construction companies?it has improved the system this year to further increase the reflection ratio.

Previously, the safety capability rating was used as a criterion to restrict bidding to partner companies above a certain level, but starting this year, the qualification for bidding participation remains the same, and the winning bidder is selected by awarding differential scores based on the bid amount and safety capability rating of the partner companies.

This complements the existing lowest-price bidding system (a system where the partner company bidding the lowest price wins) and is expected to help strengthen safety by increasing the winning probability of partner companies with high safety ratings. The partner companies' safety capability ratings were based on safety evaluations conducted by credit rating agencies.

Currently, this system is applied to earthwork, which prepares the site in building construction?one of the high-difficulty processes?and plans to gradually expand to other high-difficulty processes in the future.

Lotte Construction has institutionalized that only partner company managers who have completed the safety experience center operated by the company itself are deployed on-site, and is also strengthening support and rewards for excellent partner companies in the safety field.

The contract priority negotiation rights reward for excellent remote safety partner companies has been expanded from one company to two companies, and incentives such as financial support and guarantee exemptions provided to excellent partner companies in the construction field are also provided equally to excellent safety partner companies.