Busan Metropolitan City Ordinance on the Promotion of Fostering the Regional Construction Industry
Responsible Division: Urban Balanced Development Office
Construction Administration Division
Partially Amended by Ordinance No. 6476, Aug. 11, 2021
- Article 1 (Purpose)
- The purpose of this ordinance is to contribute to fostering a competitive local construction industry and the development of the local economy by stipulating matters necessary to promote the revitalization of the local construction industry in Busan Metropolitan City.
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Article 2 (Definitions)
The meanings of the terms used in this Ordinance shall be as follows: <Amended on Nov. 4, 2015; Jul. 10, 2019; Aug. 11, 2021> - 1. "Regional construction industry" means the construction industry, construction service business, and construction material manufacturing industry registered under the "Basic Law on Construction Industry" and other laws and regulations operated in the jurisdiction of Busan Metropolitan City (hereinafter referred to as the "City");
- 2. "Regional construction business operator" means a person who runs the construction industry with a copy of the corporate registration and an individual with the location of the main office on the business license;
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3. "Construction business operator" means a person under pursuant to Article 2 ⑦ of the Basic Law on the Construction Industry;
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4. "Local construction worker" means a worker engaged in the construction industry with resident registration in the city for more than three months.
- Article 3(Obligation of the City)
- ① For the development of the local construction industry, the City shall develop various support policies, such as improving the construction industry-related systems, providing information on new construction technologies, and consulting therefor. <Amended on Nov. 1, 2017>
- ② The city shall increase the number of orders for the local construction industry through the active promotion of various development projects, and strengthen the competitiveness of the local construction industry by reforming the insolvent local construction industry.
- ③ The city shall take proper measures to establish fair trade practices in subcontract transactions by continuous control over unfair subcontracting practices in the construction industry.
- ④ The City shall endeavor to promote the preferential employment of residents at construction sites and the use of construction and building materials and equipment produced in the city's jurisdiction.
- ⑤ The City shall actively encourage contractors who are not based in the city to increase the rate of joint contracting and subcontracting with local construction industry if they participate in the local construction industry. <Newly Inserted on Sep. 27, 2017>
- Article 4 (Obligation of Regional Construction Enterprises)
- ① Local construction industry owners shall endeavor to establish a sound regional construction industry, such as eradicating various construction irregularities and preventing poor design and construction.
- ② Local construction industry owners shall endeavor to expand the employment of residents and the use of construction and construction materials and equipment produced in the jurisdiction of the city.
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Article 5 (Revitalization Plan)
The Mayor of Busan Metropolitan Area (hereinafter referred to as the "Mayor") shall establish and implement an annual plan for the revitalization of the construction industry in the Busan Metropolitan Area including the following items: - 1. Basic Goals and Directions;
- 2. Creating a foundation for the local construction industry;
- 3. Achievements in the previous year's revitalization of the local construction industry;
- 4. Economic Outlook for the Regional Construction Industry;
- 5. Other matters necessary for the revitalization of the local construction industry.
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Article 6 (Research on Actual Condition)
In order to revitalize the local construction industry, the mayor shall conduct a survey on the actual status of the local construction industry (hereinafter referred to as the "Research on Actual Condition") including the following items at least twice a year: - 1. Matters concerning participation in contracting and subcontracting of local construction industry;
- 2. Matters concerning the use of materials and equipment;
- 3. Matters concerning the appropriateness of subcontracting;
- 4. Matters concerning the design and construction in good faith;
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5. Other matters necessary for the healthy development of the local construction industry.
- ② A notice on the date, purpose and contents of the research shall be made 7 days in prior to the research to the construction industry enterprise subject to research when a research is being conducted by the mayor.
- ③ The Mayor may post the results of analysis obtained from results of the research.
- ④ In case, the Mayor may request the cooperation of the associations related to construction industry when necessary for the research.
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Article 7 (Split Order of Construction Works)
In order to expand opportunities for local construction industry workers to participate in construction, the mayor shall review whether it is possible to place a split order by region or occupation from the planning stage of the project, such as budget formulation and basic design, for construction work with an estimated price or higher than the estimated price according to Article 24 ① of the "Enforcement Regulations of the Law on Contracts Involving Local Governments as Parties".
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Article 8 (Restriction on the application of standard market unit prices <Amended on Jun. 8, 2016>)
In order to revitalize the local construction industry, the Mayor may not apply the standard market unit price when calculating the estimated price for construction works of which the estimated price is less than KRW 10 billion. However, this is not the case in any of the following cases: <Amended on Jun. 8, 2016 > - 1. Omitted; <Jun. 8, 2016>
- 2. In the case of including new technologies, new construction methods, patents which are difficult to apply standard items;
- 3. If it is judged that there is a special reason to apply the standard market unit price.<Amended on Jun. 8, 2016>
- Article 9 (Relaxation of eligibility for participation in bidding)
- ① In ordering construction works, the Mayor shall restrict the qualifications to participate in bidding pursuant to relevant statutes, such as the Act on Contracts to which Local Governments are Parties, but shall not excessively restrict them.
- ② If the mayor restricts the eligibility requirements for participation in the bidding in the limited bidding to the construction performance of the relevant field, the size, quantity, or estimated price of the construction shall be one-third in principle, but may be adjusted in consideration of the characteristics of the construction, the competitiveness, the difficulty of the construction, the method of contracting, etc.
- Article 10 (Expansion of participation of local construction industries)
- ① The Mayor may encourage local construction contractors to maximize their participation in construction to the extent that it does not hinder the deterioration of construction quality or smooth formation of joint contractors pursuant to In accordance with Article 29 of the Act on Contracts Involving Local Governments as Parties and Article 88 ⑥ of the Enforcement Decree of the Law on Contracts Involving Local Governments as Parties.
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② The mayor may make strong recommendations on each of the following:
- 1. A construction business operator participating in the local construction industry shall have a joint contract rate of 49/100 or more;
- 2. In the case of construction subcontracted by a construction contractor participating in the local construction industry, the subcontracting ratio of the local construction contractor is 70/100 or more;
- 3. Joint participation of local construction companies and expansion of direct construction ratio for local construction industries developed by the private sector.
- ③ Incentives for construction industry and public institutions that have implemented paragraphs 1 and 2 may be set aside by the mayor.
- ④ The Mayor may place an order for a comprehensive construction project with an estimated price of not less than 200 million won and but less than 10 billion won through a joint contract with the main contractor. However, this is not the case when separation by engineering type is impossible or the composition of joint supply and demand bodies is not smooth.
- <Amended on Apr. 1, 2015>
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Article 10-2 (Policies to support employment stability of local construction workers)
The Mayor may formulate policies including the following matters to support the employment stability of local construction workers: <Amended on Jul. 10, 2019> - 1. Creation of jobs for local construction worker, skill training, and Eradication of unpaid wages for local construction workers;
- 2. Prevention of safety accidents and improvement of working environment to prevent life and physical injury of local construction workers;
- 3. Promoting free employment agencies to improve the employment environment of local construction workers;
- 4. Implementation of welfare programs for local construction workers;
- 5. Management, supervision, and measures for matters delegated by various laws and regulations;
- 6. Development of various policies to stabilize employment of local construction workers;
- [Newly Inserted on Nov. 4, 2015]
- [The Title Amended on Jul. 10, 2019]
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Article 10-3 (Efforts to Improve Employment)
The mayor shall endeavor to implement the following projects for job security, employment promotion and vocational skills development pursuant to Article 34 of the Employment Insurance Law and Article 55 of the Enforcement Decree of the same Act: <Amended on Jul. 10, 2019> - 1. Support for technical training of local construction workers
- 2. Establishment of a job search system for local construction workers
- [This Article Newly Inserted on Nov. 4, 2015]
- Article 10-4 (Priority employment of local construction workers)
- ① The mayor may encourage builders and local construction workers to give priority to hiring local construction workers and to give priority to local construction machinery. <Amended on Jul. 10, 2019>
- ② The mayor may operate a free job placement agency for the purpose of job security for local construction workers. However, for the efficient management and operation of the free job placement agency, the management and operation may be entrusted to a corporation or organization recognized as having the manpower and facilities to carry out the job placement project. <Amended on Jul. 10, 2019>
- ③ Contractors and local construction workers shall endeavor to give priority to hiring local construction workers who have registered for employment with a free job placement agency pursuant to paragraph ②. <Amended on Jul. 10, 2019>
- [Newly Inserted on Nov. 4, 2015]
- [The Title Amended by Jul. 10, 2019]
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Article 10-5 (Safety and Health of Local Construction Workers and Disaster Prevention)
The Mayor shall endeavor to implement the following matters in order to prevent the safety and health of local construction workers and disasters: - 1. Promoting public relations, education, and disaster-free activities to raise awareness of safety and health;
- 2. Record and preservate the causes of disasters in the event of an industrial accident;
- 3. Reinforcement of special management and education for work places with serious disasters;
- [Newly Inserted on Nov. 4, 2015]s
- [The Title Amended on Jul. 10, 2019]
- Article 10-6 (Priority Use of Local Production Materials and Equipment)
- ① The Mayor shall actively engage in public relations activities to promote the use of construction and construction materials and equipment produced in the jurisdiction of the Si.
- ② The Mayor may encourage the government to supply construction and construction materials and equipment produced in the jurisdiction of the Si or to preferentially use them.
- [This Article Newly Inserted, Nov. 1, 2011]
- Article 11 (Subcontract Review Committee)
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① Pursuant to Article 31 ⑤ of the Framework Act on Construction Industry, the Mayor shall establish the Busan Metropolitan Government Subcontract Review Committee (hereinafter referred to as the "Review Committee") to examine the construction capacity of subcontractors, the appropriateness of subcontracts, etc.
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② The Review Committee shall be comprised of not more than 10 members, including one chairperson and one vice-chairperson, and the head of the balanced urban development office shall be the chairperson.
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③ The Examination Committee shall have one executive secretary to handle the affairs of the Examination Committee, and the officer in charge of subcontracting affairs shall be the executive secretary.
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④ The executive secretary shall prepare, keep, and manage the minutes at each meeting, and disclose the results of the examination by the Examination Committee within seven days through the Si Internet webpage, etc.
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⑤ Detailed examination standards for subcontracting items and distribution standards for construction work may be adjusted after deliberation and resolution by the Review Committee within the scope notified by the Minister of Land, Infrastructure, and Transport pursuant to Article 34 ④ of the Enforcement Decree of the Framework Act on Construction Industry.
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⑥ Other matters necessary for the composition and operation of the Review Committee shall be governed by Article 34 of the Enforcement Decree of the Framework Act on Construction Industry.
- Article 12 (Regional Construction Industry Development Committee)
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①The Busan Metropolitan Government Regional Construction Industry
Development Committee (hereinafter referred to as the "Committee") shall be established to deliberate on and advise on the following matters to revitalize the local construction industry:
- 1. Matters concerning the development of the local construction industry;
- 2. Matters concerning the identification of the order rate and subcontract participation rate of local construction companies;s
- 3. Matters concerning the collection and resolution of difficulties of local construction business operators;
- 4. Matters concerning the improvement of the construction industry-related system and suggestions for revision of laws and regulations;
- 5. Matters concerning the selection of proud builders under Article 16;s
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6. Matters concerning the increase in orders for the local construction industry when promoting the construction industry under the Urban and Residential Environment Improvement Act and other laws and regulations;
- 7. Other matters deemed necessary by the Mayor and referred to the meeting.
- ② The committee shall consist of not more than 25 members, including one chairperson and one vice-chairperson.s
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③ The chairperson of the committee shall be the deputy chief executive officer, the vice-chairman shall be the director of the Office of Urban Balanced Development, and the members shall be appointed or commissioned by the mayor, taking into account gender among the following persons:
- 1. Public officials of Grade 3 or higher Grade working in the City;
- 2. Persons recommended by the Busan Metropolitan City Council;
- 3. Persons recommended by public corporations established by the City pursuant to the Local Public Corporation Act;
- 4. Persons recommended by construction industry-related associations;
- 5. Persons who have professional knowledge and abundant experience on the construction industry.
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④ The Committee shall be organized when an agenda arises, and shall be automatically dissolved after deliberation and resolution.
- ⑤ The Chairperson of the Committee shall represent the Committee, preside over the affairs of the Committee, and if the Chairperson is unable to perform his/her duties due to unavoidable reasons, the Vice-Chairperson shall act on his/her behalf.
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⑥ Omitted
- ⑦ Meetings of the Committee shall be held with the attendance of a majority of the incumbent members, and resolutions shall be made with the consent of a majority of the members present.
- ⑧ The Committee shall have one executive secretary and one clerk to handle the affairs of the Committee, and the director in charge of construction business shall be the executive secretary, and the officer in charge of construction business shall be the clerk.
- ⑨ Except as otherwise provided for in this Ordinance, matters necessary for the operation of the Committee shall be separately determined by the Chairperson after resolution by the Committee.
- Article 13 (Working Team)
- ① The committee shall have a working team in order to carry out the work of the committee efficiently.
- ② The working team shall consist of no more than 20 members, including one working team leader.
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③ The head of the working team shall be the head of the construction business department, and the team members shall consist of the following persons:
- 1. Officer in charge of affairs of the department related to the city construction industry;
- 2. Officials from associations related to the construction industry, etc.
- ④ Meetings of the working team shall be held once a quarter, but may be held as often as necessary.s
- ⑤ Other matters necessary for the operation of the working team shall be separately determined by the head of the working team after a meeting of the working team.
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Article 14 (Request for Cooperation from Relevant Authorities)
The examination committee and committee may invite relevant experts to attend if necessary to carry out their work, and may request their cooperation such as hearing opinions or submitting materials.
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Article 15 (Allowances, etc.)
Allowances and travel expenses may be paid to commissioned members and related experts who attend the Examination Committee and the Committee within the scope of the budget.s
- Article 16 (Selection of Distinguished Constructors, etc.)
- ① The Mayor may select construction business operators and employees under his/her jurisdiction as distinguished builders who have contributed to the revitalization of the local construction industry through deliberation by the Committee under Article 12.
- ② A distinguished builder selected pursuant to paragraph ① shall be deemed to be an excellent entrepreneur pursuant to Article 4 of the "Ordinance on the Courtesy of Entrepreneurs and the Promotion of Business Activities of Busan Metropolitan City". However, this does not apply if the selected distinguished builder is not a local construction contractor.
Addendum
This ordinance shall take effect on the day after January elapses after its promulgation.
Addenda(Ordinance for the Establishment of Administrative Bodies)
- Article 1 (Effective Date)
- This ordinance shall take effect on the date of its promulgation.
- Article 2 (Amendment of other ordinances)
- ① ~ ㊵ omitteds
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㊶ Part of the Ordinance on Promoting the Revitalization of the Local Construction Industry of Busan Metropolitan City shall be amended as follows:
Article 7, paragraph 4, among the parts other than each subparagraph, the "Director of the Construction and Disaster Prevention Bureau" shall be the "Construction Disaster Prevention Officer". - ㊷ ~ (56) omitted
Addenda
- Article 1 (Effective Date)
- This ordinance shall take effect one month after its promulgation.
- Article 2 (Interim Measures for Members of Busan Metropolitan Area Construction Industry Development Committee)
- Members of the Busan Metropolitan City Construction Industry Development Committee appointed pursuant to the previous provisions at the time of the enactment of this Ordinance shall be deemed to be members of the Busan Metropolitan Area Construction Industry Development Committee pursuant to this Ordinance.
- Article 3 (Interim Measures for Distinguished Construction Workers)
- A distinguished builder under the previous regulations at the time of the enactment of this Ordinance shall be deemed to be a distinguished builder under this Ordinance.
Addendum
This ordinance shall take effect one month after its promulgation.
Addenda (Ordinance for the Establishment of Administrative Bodies)
- Article 1 (Effective Date)
- This ordinance shall take effect on Jan. 1, 2015.
- Article 2
- omitted
- Article 3 (Amendment of other ordinances)
- ① ~ (48) omitted
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(49) Part of the Ordinance on Promoting the Revitalization of the Local Construction Industry of Busan Metropolitan City shall be amended as follows:
Among Article 11 ② and Article 12 ③, the "Construction and Disaster Prevention Officer" shall be the "Head of the City Planning Office", respectively. - (50) ~ (100) omitted
Addendum
This ordinance shall take effect one month after its promulgation.
Addendum
This ordinance shall take effect one month after its promulgation.
Addendum
This ordinance shall take effect one month after its promulgation.
Addendum
This ordinance shall take effect six months after its promulgation.
Addendum
This ordinance shall take effect on the date of its promulgation.
Addenda (Partial Amendments to the Busan Metropolitan City Council's Ordinance for the Improvement of Work-Related Terms and Support for Legislative Activities for Members with Severe Disabilities)
- Article 1 (Effective Date)
- This ordinance shall take effect on the date of its promulgation.
- Article 2
- omission
Addenda (Ordinance for the Establishment of Administrative Apparatus of Busan Metropolitan City)
- Article 1 (Effective Date)
- This ordinance shall take effect on the date of its promulgation.
- Article 2
- omitted
- Article 3 (Amendment of other ordinances)
- ① ~ ⑭ Omitted
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⑮ Part of the ordinance on promoting the revitalization of the local construction industry of Busan Metropolitan City shall be amended as follows:
Among the parts other than Article 11 ② and Article 12 ③, the "Director of the Urban Planning Office" shall be the "Head of the Urban Balanced Development Office", respectively.s - (16) ~ (79)Omitted
Addendum
This ordinance shall take effect on the date of its promulgation.
