Meeting Day with Major Construction Companies, Results from On-site Sales Activities
On the 29th, '2024 Subcontracting Rate Improvement Review Meeting' Held
Ulsan City has exceeded the subcontracting target rate of 33% for local construction companies.
On the 29th at 3 p.m., Ulsan City will hold the ‘2024 4th Quarter Subcontracting Rate Improvement Review Meeting’ at the main building.
The meeting will be attended by about 20 people, including Deputy Mayor An Seung-dae, officials from Ulsan City, district offices, and Ulsan Urban Corporation. It will cover the 2024 departmental (institutional) performance, presentation of the 2024 subcontracting rate results, and discussion of the 2025 action plan.
Throughout 2024, Ulsan City has actively promoted the ‘2024 Local Construction Industry Revitalization Plan’ by selecting 20 detailed action tasks across four sectors to revitalize the local construction industry.
As a result, the average subcontracting rate from the 1st to 4th quarter this year reached 33.08%, surpassing the target of 33%. This is a 2.6 percentage point increase compared to last year’s average subcontracting rate of 30.48%.
Key achievements include recording a 4th quarter subcontracting rate of 82.7% in large-scale factory new and expansion projects such as the S-OIL Shahin Project, hydrogen fuel liquefied gas terminal, and Ulsan North Port liquefied gas terminal. Accordingly, out of the total regional subcontracting amount of 1.8478 trillion KRW in the 4th quarter, 1.5281 trillion KRW went to local companies.
In addition, Ulsan City has carried out various activities to strengthen cooperation between large construction companies and local firms and to encourage participation by local companies. On October 22, the ‘Meeting Day for Large Construction Companies and Local Firms’ was held, where 74 large construction companies and 250 local construction companies conducted matchmaking consultations, resulting in 41 companies being registered as partner firms.
Moreover, through signing agreements with public institutions and large construction companies, implementing an incentive system for apartment complexes, and strengthening public-private cooperative on-site sales activities, Ulsan City contributed to revitalizing the local construction industry.
Especially next year, as the construction industry is expected to gradually recover, various measures will be implemented to further strengthen the competitiveness of local companies.
Specifically, these include △early establishment of the apartment complex incentive system △expanding local companies’ participation in initial construction processes through visits to headquarters of large construction companies △increasing local company participation in competitive fields against construction companies from other regions (such as mechanical equipment, stonework, landscaping, and auxiliary civil engineering) △announcement of the 2025 subcontracting order plan △support for fees related to issuing payment guarantee certificates for public housing subcontracting payments.
An official from Ulsan City said, “Through this meeting, we will review this year’s achievements and make greater efforts next year to strengthen the competitiveness and expand the participation of local construction companies. We will continue to work hard to revitalize the local economy and create a stable local construction industry environment.”
Ulsan City Hall.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
