(1) Reasons for Proposal
In accordance with the amendment to the Framework Act on the Construction Industry (Law No. 15991, promulgated on Dec. 18, 2018, Law No. 16136, promulgated on Dec. 31, 2018) which introduces matters such as limited participation of constructors in subcontracting of public construction works, disclosure of subcontract tender information, mandatory use of electronic procurement system for public construction works, construction worker employment evaluation system, guarantee of price payment for rental of construction machinery according to the construction site, and system for inspection of propriety of tower crane rental agreements, this proposal aims to set a period of limitation on participation in subcontract works according to violation, disclose subcontract tender information on internet homepage, etc., and provide a method for construction worker employment evaluation, etc., while prescribing requirements for exceptions to the guarantee of price payment for rental of construction machinery according to construction site and providing a method for notification of tower crane rental agreements, etc.
(2) Major Provisions
A. Relaxing of Capital Standards and Raising of Guaranteed Amount (Article 13, attached Table 2)
Lower capital standards to 70% of the current standards and raise the amount required as security (or deposit) by financial institutions from 20~50% of capital to 25~60%.
B. Standard on Imposition of Penalty Points on Contractors (Article 28, Article 79, 2, 6, 7 of attached Table 3)
Impose penalty points of 0.5~3 according to violations of labor related laws by contractors, and prescribe that each penalty point shall expire three years from the imposition date.
C. Limitation on Participation in Subcontracting of Construction Works (Article 33, attached Table 3-3)
Limit participation in subcontracting for a period of two months or more but not exceeding eight months according to the violation.
D. Evaluation of Propriety of Tower Crane Rental Agreements (Article 64-4)
Prescribe that an owner shall evaluate the propriety when the rental value is less than 82% of the contract value (contractor) or less than 64% of the estimated cost (owner).
