(1) Reasons for Proposal

With the revisions to the Framework Act on the Construction Industry in such a way that the regulation of business area is abolished between the general constructor and the specialized constructor to reorganize the production structure of the construction industry and to protect rental fees for temporary equipment and material (Act No. 16136, promulgated on 12. 31, 2018, enforced on  1. 1, 2021 and Act No. 17221, promulgated on 4. 7, 2020, enforced on 10. 8, 2020), the Act aims to determine matters legally delegated and other matters of enforcement while remedying some of the inadequacies revealed in the operation of the current system.

(2) Major Provisions

A. Repeal the small scale construction works system (Delete Article 13-2)

Allow a constructor who registered more than two (2) specialized construction works to be awarded a subcontract for general construction works, and since the regulation of business area is abolished, repeal small scale combined works system that allowed subcontracting  for constructors who were registered as a specialized constructor.

B. Scope of specialized construction works subcontractable by general constructors (Article 13-3, newly inserted)

As the constructors who registered general construction as a business type are allowed to subcontract specialized construction works, adopt a system that allows part of the facility where a constructor capable of general construction works can construct facilities corresponding to the business fields of the relevant industry or scope of specialized construction works in specialized fields

C. Introduce the requirements to fulfill and procedures when mutually entering general and specialized markets (Article 13-4, newly inserted)

Minimize confusion by specifying document requirements and procedures to be submitted to the project owner, as registration requirements for either general or specialized construction are fulfilled to subcontract the relevant works.

D. Introduce a system to disclose recognized construction records and direct construction records when evaluating construction capacity (Article 23(10) and Article 24(1)-5)

1) As the qualification of constructor under Article 16 and the limitation on subcontracting under Article 29 are completely reorganized, deem 1/2 of construction record to be its record if a constructor taking a direct performance of construction works as a matter of principle is subcontracting a specialized construction and re-subcontracting (including general and specialized works) the subcontracted works to others.

2) Introduce a system to disclose direct construction to promote the contractor’s direct construction for improving construction quality and increasing construction responsibility and to induce voluntary participation.

E. Introduce a system of protecting rental fees for temporary equipment and material (Article 27-4, paragraph 2, newly inserted)

With the revisions to the Act to protect the rental fees of temporary equipment and material, specifically determine the temporary equipment and material the fees for which can be protected, as designated by a subordinate Act.

F. Put special cases in place to recognize the record of the other party's fields to mutually enter the general and specialized markets (Supplementary Provision 7)

When mutual market entry is made possible by repealing the regulations of a business area, put a special case in place for temporary recognition of the other party's record to ensure promotion of mutual market entry and creation of the basis for fair competition