Daejeon City Discusses Ways to Expand Participation of Major Metropolitan Construction Firms and Local Companies

Request to Expand Outsourcing Contracts and Ensure Fair Opportunities

Choi Youngjun, Director of Urban Housing Bureau of Daejeon City, and executives in charge of outsourcing contracts from 16 major construction companies in the metropolitan area held a meeting on the 14th to pledge cooperation. / Daejeon City

On the 14th, Daejeon City held a meeting with executives in charge of outsourcing contracts from 16 major construction companies based in the Seoul metropolitan area, who are responsible for key construction sites, to discuss ways to promote mutual cooperation with local construction companies.

According to the city, in large-scale private construction projects of 3,000 square meters or more in the Daejeon area last year, the amount awarded to local companies was approximately 3 trillion won, with a participation rate of 66%. In the first quarter of this year, the participation rate rose to 69.2%, an increase of 3.2 percentage points, showing an upward trend.

The city requested construction companies to expand outsourcing contracts and provide fair opportunities so that more local companies can participate in projects carried out in the region.

The construction companies stated, "There are many competitive local companies in Daejeon, so there are sufficient conditions for cooperation. Although there are practical difficulties such as lack of construction capacity in certain processes, we will seek various ways to promote mutual growth with local companies."

Going forward, the city plans to increase the actual participation of local companies by requiring the submission of a subcontract execution plan during the integrated architectural review process, which takes place before the approval of the existing business plan. The city will also require construction plans that allocate at least 30% of prime contracts and 80% of subcontracts to local companies, supporting developers and builders to ensure responsible construction.