Gyeonggi Province Conducts Preliminary Survey of Public Bidding
Administrative Sanctions Imposed on Ineligible Construction Companies
One Construction Company Faces Criminal Penalties
Gyeonggi Province announced on May 16 that it had identified 53 ineligible construction companies that failed to meet the registration requirements for construction businesses through a preliminary survey of construction contractors bidding on provincial construction projects from January to April of this year, and has imposed administrative sanctions on them.
The province explained that it conducted a preliminary survey on 136 construction projects with a contract value of over 100 million won, regardless of whether the companies participated in the bidding. As a result, it was found that a significant number of companies did not meet the registration requirements for construction businesses due to reasons such as insufficient technical capabilities, inadequate capital, and failure to meet office requirements.
Administrative sanctions were imposed on these ineligible construction companies in accordance with relevant laws. Among them, one company was criminally punished by the Suwon District Court: the representative received a one-year prison sentence and the company was fined 10 million won for unregistered subcontracting.
Since October 2019, when Gyeonggi Province became the first in the country to introduce a preliminary survey system for public bidding, it has implemented strong measures for violations of the Framework Act on the Construction Industry, including exclusion from bidding, administrative sanctions, and criminal prosecution.
Meanwhile, last year, a total of 319 surveys led to the identification of 113 ineligible companies. The effectiveness of this system has prompted other local governments, such as Seoul and South Chungcheong Province, to adopt similar measures.
Kang Seongsup, Director of Construction for Gyeonggi Province, stated, "While some in the construction industry express difficulties in maintaining registration requirements, on the other hand, sound companies are actively cooperating with the surveys. We will continue to pursue policies unwaveringly to create a fair and transparent construction environment."
Meanwhile, Gyeonggi Province's survey system was recognized last year as an 'exemplary case of proactive administration' by the Board of Audit and Inspection. The province plans to continue focusing on preventing unfair practices and substandard construction this year through ongoing surveys and on-site inspections.
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