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A Study on the Bidding System for Public Construction Works in connection with the Registration System of Construction Contractors

Publication Date 2018-11-16

Researchers Min-Soo Choi

A Study on the Bidding System for Public Construction Works in connection with the Registration System of Construction ContractorsIn order to cope with environmental changes, such as intensifying competition in the construction market, and to meet the demands of securing the quality of construction products or preventing accidents, it is important to select a constructor with the business scale or performance which is most suitable for the scale and characteristics of the construction project.In foreign countries, most of the public owners operate a list of the approved contractors by type of construction, limiting the participation of the unqualified in bidding. In addition, it is common to induce the most suitable contractor for the project by setting up qualifications of bidders suitable for the construction scale or characteristics of each project.For example, MLIT(Ministry of Land, Infrastructure and Transport) in Japan has established a list of the qualified contractors by dividing them into 21 types of construction works, such as steel bridge, landscaping, electrical installation, HVAC(Heating, Ventilation and Air conditioning system), sanitary installations, asphalt pavement and building. In addition, qualified contractors are classified into grades 3 to 4 according to evaluation scores, and the scope of the amount of construction that can participate in bidding is set up for each grade. In other words, it is inducing the protection of small businesses and the selection of qualified companies by conducting bids for those with the most appropriate size for the project.In Korea, there are insufficient cases where the list of the qualified bidders is organized and operated except for the Public Procurement Service. Considering the foreign cases, the public agencies should operate a list of the qualified contractors by classifying major projects, such as roads, streams, and water and sewage by type. The list of the qualified contractors is required to be updated regularly, for example those who caused a serious accident, did a poor construction, or performed a contract insincerely may be regularly verified and excluded from the list of the qualified contractors.In terms of the bidding system for public construction works, it is necessary to devise a system so that construction company with the size suitable for the size of the construction scheduled to be bid can win a contract for the construction. For this purpose, it is desirable to classify the classes by the public project owners considering the size of the project or the size of the business. For example, in principle, it is desirable that only third-class companies are allowed to participate in a third-class project bid.