Korea Land & Housing Corporation (LH) said it has drawn up a plan to place construction and service orders totaling 17.9 trillion won this year to help revive the construction market and expand the supply of dwellings.
Specifically, the orders total 1,515 cases amounting to 17.8839 trillion won. Of that, construction accounts for 15.8222 trillion won and services for 2.0617 trillion won.
In particular, orders related to the dwellings business accounted for about 68% of the total amount. LH concentrated volumes on building construction (8.7 trillion won) and ancillary works such as electrical, communications and fire protection (3.3 trillion won).
By bid evaluation type, the plan comes to ▲ comprehensive evaluation system (including the simplified comprehensive evaluation) 13.5 trillion won (402 cases) ▲ qualified evaluation 3.3 trillion won (966 cases) ▲ others 1 trillion won (147 cases).
The comprehensive evaluation system applies to projects with an estimated price of 30 billion won or more and selects a successful bidder by comprehensively evaluating construction capability and bid price. The simplified comprehensive evaluation applies to projects with an estimated price of at least 10 billion won and less than 30 billion won. The qualified evaluation applies to projects with an estimated price of less than 10 billion won and selects a successful bidder by reviewing, in order of the lowest bid (at or above the minimum bid rate), the ability to perform the contract and choosing one that meets a certain standard.
This ordering plan is centered on the Seoul metropolitan area and the third new towns to supply large-scale public dwellings in the metropolitan area. Seventy-one percent of the total plan (about 12.8 trillion won) is concentrated in the metropolitan area and the third new towns, including Namyangju Wangsuk, Incheon Gyeyang, Goyang Changneung and Hanam Gyosan.
LH will place about 5.1 trillion won (29%) in orders outside the metropolitan area. Funds are allocated to regional public dwellings such as Daegu Yeonho, Asan Tangjeong 2 and Jeonbuk Jangsu, and to industrial complex development projects to support a rebound in regional construction and local economies.
LH plans to strictly carry out the ordering plan to expand direct dwelling construction projects and speed up the supply of dwellings so that sufficient dwellings can be supplied early.
It plans to closely manage the ordering schedules for large-scale apartment projects that draw strong interest from the construction industry on a monthly and quarterly basis, and to support continued bidding by construction firms by re-notifying major construction schedules after reflecting changes in the second half.
Acting LH President Jo Kyung-sook said, "We have set up the ordering plan to meet the goal of starting construction on 52,000 public dwelling units without a hitch and to supply stable volumes to a sluggish construction market," adding, "Through timely orders and rigorous schedule management, we will produce results the public can feel."
Detailed information on this ordering plan will be available on the LH website's e-procurement system starting on the 26th.