Price of Construction Materials Managed by Public Procurement Service Up 2.13% in First Half of This Year

The Public Procurement Service's facility material prices for the first half of this year will increase by an average of 2.13% compared to the second half of last year.

The Public Procurement Service announced on the 12th that it recently held a Facility Material Price Deliberation Committee meeting and made this decision. The items for which the committee decided to raise prices include 6,817 common materials to be applied in calculating government construction costs for the first half of this year and 582 items of market construction prices.

The increase in facility material prices was influenced by the recent rise in construction costs, producer prices, and labor costs. The increased facility material prices will be applied starting from the construction projects for which the base amount is announced on the 22nd of this month.

Facility material prices are surveyed twice a year for items that have a high proportion in construction costs or are frequently used, and then applied when calculating the cost of facility construction projects ordered by the Public Procurement Service.

Since February, the Public Procurement Service has conducted price surveys and verifications jointly with a public-private collaboration task force to ensure the reliability of government construction costs, and reflected the results in the facility material prices.

The determined prices have been disclosed through the Construction Cost Integrated Management System for use by government agencies and public institutions. Anyone can inquire or provide feedback on the disclosed prices through the Nara Marketplace (Price Information).

Kang Seong-min, Director of the Facility Business Bureau at the Public Procurement Service, said, “Since 2021, facility material prices have been adjusted through mutual verification by the public-private collaboration task force to timely reflect market prices at construction sites. Especially this year, by expanding collaboration with public and private experts, we have standardized (coded) the detailed components of construction costs and provided price information, which is expected to be usefully utilized by demand agencies in calculating appropriate construction costs.”