Busan Urban Corporation Holds Talks with Local Construction Industry

[Financial News] The issues cited as most in need of resolution to revitalize the Busan region’s construction industry included increasing local companies’ participation and bringing construction costs in line with actual costs.

Busan Urban Corporation said on the 29th that it recently held a communication meeting with the Busan Chapter of the Construction Association of Korea to hear concerns from the local construction industry and explore ways to work together to revitalize the industry.
At the meeting, the two organizations shared updates on recent conditions in the local construction market and key issues facing the industry. They also exchanged views on a range of topics, including improving conditions at construction sites and expanding local companies’ participation in projects.
In particular, participants raised the issue that, despite an increase in the construction-cost threshold for region-restricted contracts, limits on bidders’ track records restrict the number of local companies actually eligible to bid. They also discussed the need for reasonable construction-cost estimates that take into account local ground conditions in Busan, including bedrock and soft ground.
Other topics included setting appropriate construction periods in light of changes in working conditions, such as an increase in holidays, and accounting for indirect costs based on site conditions when construction periods are extended.
The corporation pledged to comprehensively review the matters discussed in light of relevant standards and project conditions, and to seek effective ways to cooperate through ongoing communication with the local industry.
The corporation’s president, Shin Chang-ho, said, “To revitalize the local construction industry, it is important to understand the difficulties at construction sites and work together to find practical ways to improve conditions,” adding, “We will continue to strengthen communication with the local construction industry and work to expand local companies’ participation and create reasonable operating conditions at construction sites.”
[email protected] Byun Ok-hwan Reporter