
Public contract laws and practices
Description
Book Introduction
Contract work for national, local government and public institutions
Clearly organized in one book in the same system!
Free PDF download of the appendix is provided to those who purchase the book.
Our country faces the challenge of overcoming the disaster and economic crisis caused by the COVID-19 crisis, which has persisted for years, through the efforts of all citizens.
In the public contracting sector, national efforts to support this are being made through improvements to the legal system, so it has become necessary to provide practical guidance on the changed system to public officials in charge of contracting work.
This revision takes this point into consideration.
First, the revised laws and regulations were faithfully reflected.
There were numerous legal revisions to support businesses, including significantly relaxing regulations on re-announced bidding, negotiated contracts, bid bonds, contract performance guarantees, inspections, and advance payments to better address the crisis.
Second, the interpretation of the law and practical cases were supplemented.
In order to directly assist in contract practice, the latest interpretations and practical cases have been supplemented, and among them, important interpretations have been selected and included again.
Third, the content was refined overall.
We keep this in mind every time we publish a revised edition, and we use simple and easy sentences throughout to ensure that the book can be used immediately in practice.
This revision also benefited from the help of Naver Budget Accounting Practice Cafe members.
I would like to express my gratitude to the Budget Accounting Practice Cafe assistant manager Jo Yang-je (Mir a), staff members Han Gil-ok (Bitgoeul Guide), Kim Geun-sook (Dok-hee), Jeong Ho-yeong (Boyru), Oh Dae-seok (Oh Dae-jang), contract masters Kim Jong-wook and Kim Jae-gon (Gwalmoksangdae) for their help.
I would also like to express my gratitude to Chairman Park Jeong-tae and all the staff of Gwangmungak for their tireless support and effort in publishing this book.
Clearly organized in one book in the same system!
Free PDF download of the appendix is provided to those who purchase the book.
Our country faces the challenge of overcoming the disaster and economic crisis caused by the COVID-19 crisis, which has persisted for years, through the efforts of all citizens.
In the public contracting sector, national efforts to support this are being made through improvements to the legal system, so it has become necessary to provide practical guidance on the changed system to public officials in charge of contracting work.
This revision takes this point into consideration.
First, the revised laws and regulations were faithfully reflected.
There were numerous legal revisions to support businesses, including significantly relaxing regulations on re-announced bidding, negotiated contracts, bid bonds, contract performance guarantees, inspections, and advance payments to better address the crisis.
Second, the interpretation of the law and practical cases were supplemented.
In order to directly assist in contract practice, the latest interpretations and practical cases have been supplemented, and among them, important interpretations have been selected and included again.
Third, the content was refined overall.
We keep this in mind every time we publish a revised edition, and we use simple and easy sentences throughout to ensure that the book can be used immediately in practice.
This revision also benefited from the help of Naver Budget Accounting Practice Cafe members.
I would like to express my gratitude to the Budget Accounting Practice Cafe assistant manager Jo Yang-je (Mir a), staff members Han Gil-ok (Bitgoeul Guide), Kim Geun-sook (Dok-hee), Jeong Ho-yeong (Boyru), Oh Dae-seok (Oh Dae-jang), contract masters Kim Jong-wook and Kim Jae-gon (Gwalmoksangdae) for their help.
I would also like to express my gratitude to Chairman Park Jeong-tae and all the staff of Gwangmungak for their tireless support and effort in publishing this book.
index
Chapter 01 The Significance of Public Contracts
1.
Concept and characteristics of public contracts
1) Requirements for the establishment and validity of a contract
2) Freedom of contract and its limits
2.
Public contract laws and enforcement agencies
1) Basic laws on public contracts
2) Other laws and regulations related to public contracts
3) Contract regulations
4) Execution agency of public contracts
3.
Public contract procedures
1) General procedures for public contracts
2) Bidding and contract flow chart
3) Construction industry system and construction execution process
Chapter 02 Deliberation and Preliminary Procedures
1.
Quality
1) Type of contract
2) Method of contract
3) Eligibility for performance
2.
Completion of preliminary procedures
1) Contract review
2) Contract review
3) Daily Gratitude
4) Construction technology review
5) Pre-disclosure of purchase specifications for goods and services (local contracts only)
6) Others
Chapter 03 Types of Public Contracts
1.
Contracts that generate revenue and contracts that generate expenditure
1) Contracts that give rise to income
2) Contract causing expenditure
2.
Classification according to the subject matter of the contract
1) Construction contract
2) Service contract
3) Goods contract
3.
Classification by contract type
1) Confirmed contract, preliminary contract, and post-cost review conditional contract
2) Total contract and unit price contract
3) Long-term continuous contract, single-year contract, continuous non-contract, single-year incremental contract
4) Sole contract and joint contract
5) Comprehensive contracts and contracts before the start of the fiscal year
6) Multiple competitive bidding for similar items
7) 2nd stage competitive bidding
8) Simultaneous bidding for specifications and prices
9) Conclusion of contract through negotiation
10) Determination of successful bidder through design competition
4.
Classification by competition type
1) General bidding contract
2) Limited bidding contract
3) Designated bidding contract
4) Veterinary contract (local contract)
5) Prohibition of split orders and contracts for construction work
6) Pre-disclosure of purchase specifications for goods and services (local contracts only)
7) Execution of contracts involving a mixture of goods, services, and construction work
8) Announcement of matters related to subcontracting (government bidding and contract execution standards, local government bidding and contract execution standards)
Chapter 04 Using the National Market
1.
Overview of the National Procurement Service
1) What is the National Marketplace (G2B)?
2) Development process of the national marketplace
3) Characteristics of the national marketplace
4) Composition of the national market
5) Main functions of the national marketplace
6) Key laws and operating regulations related to the national marketplace
2.
Electronic bidding execution
1) What is electronic bidding?
2) Bid Notice
3) Act on the Use and Promotion of Electronic Procurement
4) Special Notes on Electronic Bidding
5) National Integrated Electronic Procurement System Terms of Use
6) When SMS is sent from the national marketplace
3.
How to use electronic contracts
1) What is an electronic contract?
2) Contract classification and successful bidder determination method
3) Act on the Use and Promotion of Electronic Procurement
4) Conclusion of the contract
5) Components of an electronic contract
6) Stamp duty on electronic documents
7) Stability of electronic contracts
8) Benefits of electronic contracts
9) Electronic contract usage history
4.
Electronic bidding and electronic contract processing procedures
1) General contract procedures
2) Electronic Bidding Notice
3) Electronic gate
4) Electronic contract (goods)
5.
Comprehensive shopping mall
1) Overview of the comprehensive shopping mall
2) Purchase process using the search bar
3) Purchase process using shopping categories
4) Purchase procedure using the authentication mall/theme mall
5) How to purchase
6.
Multi-Supplier Contracting System (MAS Stage 2)
1) MAS Phase 2 Overview
2) Processing procedure
3) Notice of Proposal for Phase 2 Competition with Multiple Suppliers
4) Multiple supplier two-stage competitive evaluation criteria
7.
Electronic Bidding Errors and Disputes: Cases and Response Methods
1) Case-by-case response methods for errors during the opening of the National Procurement Service
2) Dispute types and handling methods
Chapter 05 Bidding Procedure
1.
Work flow chart
2.
Bidding and Contract Process Flowchart (for Qualification Review)
1) Bidding
2) Opening and bidding
3) Electronic bidding system
3.
Details of each bidding procedure
1) Budget execution deliberation
2) Review the appropriateness of cost calculation
3) Determining the contract method
4) Bid Notice
5) Preparation, placement, inspection, and issuance of bidding-related documents
6) Description of the construction site
7) Application for participation in bidding
8) Submission of bid
9) Establishment, postponement and invalidation of bidding
10) Bidding in special cases
Chapter 06 Estimated and Projected Prices
1.
concept
1) Estimated price
2) Estimated price
2.
Method and criteria for determining the estimated price
1) Method of determining the estimated price
2) Criteria for determining the estimated price
3.
Procedure for determining the estimated price of a competitive bid through a qualification examination
1) Write the basic amount
2) Confirmation of base amount
3) Disclosure of base amount
4.
Calculation of multiple reserve prices (applicable only to small-sum contracts and qualification examinations)
1) Preparation of multiple reserve prices
2) Determination and disclosure of the estimated price based on multiple reserve prices
3) Unit appreciation of the expected price
5.
Estimated price determination based on appraisal price, transaction example price, and estimated price
1) Determination of estimated price based on appraisal value
2) Estimated price determination based on the estimated price
3) Determination of expected price based on transaction example price
6.
Determination of estimated price based on cost calculation
1) Concept of cost accounting
2) Composition of manufacturing costs
3) Calculating construction costs
4) Calculation of academic service costs
Chapter 07 How to Determine the Successful Bidder
1.
Bidding process
1) Method of determining the successful bidder
2) Types of methods for determining the successful bidder
2.
Qualification Review System
1) Concept
2) Legal basis
3) Method of determining the successful bidder
4) Qualification screening guidelines and procedures
3.
Bidding and Estimated Price Determination
1) Bidding Notes (Local Government Bidding and Contract Execution Standards, Chapter 1, Section 1-7)
2) Determine the expected price
3) Estimated price determination procedure
4.
How to handle decimal points during qualification screening
1) Public Procurement Service (national contract)
2) Local governments
5.
Eligibility criteria
1) Qualification review evaluation items
2) Qualification screening evaluation criteria and evaluation methods
3) Construction experience performance evaluation
4) Submission of construction performance and evaluation criteria
5) Management status evaluation method
6) Price evaluation
Chapter 08 Conclusion and Performance of Contracts
1.
Conclusion of the contract
1) Contract conclusion period (Chapter 11, Local Bidding Contract Standards, Notice of Bidding)
2) Preparation of the contract
3) Contract deposit and performance guarantee of construction contract
2.
Performance of the contract
1) Performance of the contract
2) Supervision of contract performance
3) Resident participation supervision system for construction performance
3.
Termination and termination of the contract
1) Significance
2) Reasons for cancellation and termination
Chapter 09 Adjustment of Contract Amount
1.
survey
2.
Adjustment of contract amount due to price fluctuations
1) Adjustment requirements (Article 64 of the National Tax Service Ordinance, Article 73 of the Land Tax Service Ordinance)
2) Criteria for calculating the adjustment amount
3) Adjustment of contract amount according to item adjustment rate
4) Adjustment by index adjustment rate (Article 74 of the National Tax Code, Article 72 of the Local Tax Code)
3.
Adjustment of contract amount due to design change
1) Meaning (Article 65, Paragraph 1 of the National Territory Ordinance, Article 74, Paragraph 1 of the Land Ordinance)
2) Contract amount adjustment unit price (Article 65 of the National Budget Act, Article 74 of the Land Budget Act)
3) Method of adjusting contract amount, etc. (Article 65, Paragraph 2 of the National Tax Service Ordinance, Article 74, Subparagraph 3 of the Land Tax Service Ordinance)
4.
Adjustment of contract amount due to changes in contract terms
1) Meaning (Article 66 of the National Territory Ordinance, Article 75 of the Land Territory Ordinance)
2) Other major types of changes to contractual terms (authoritative interpretation cases)
3) Adjustment criteria
Chapter 10 Inspection, Payment of Fees, and Liquidated Damages
1.
test
1) Significance
2) Inspection period
3) Inspection method
4) Prohibition of concurrently holding supervisory and prosecutorial positions
2.
Payment of price
1) Payment of the standard salary (gold) or the standard salary (partial salary)
2) Payment of semi-supply or full payment (complete payment)
3) Payment of advance payment (Article 26 of the National Treasury Management Act, Article 35 of the Local Accounting Act)
3.
Confirmation of payment of subcontracting fees and labor costs
1) Significance
2) Confirmation of payment of subcontracting fees and direct payment, etc.
3) Confirmation of classification, management, and payment of labor costs in construction contracts
4.
Delay liquidated damages (delay compensation)
1) Significance
2) Collection rate and method of late payment penalty
3) Exemption from penalty for delay
4) Delay compensation and extension of contract period
Chapter 11 Defect Repairs and Sanctions against Unfair Trade Practices
1.
Defect repair and defect warranty liability
1) Significance
2) Defect warranty period and defect inspection
3) Defect repair deposit
2.
Restrictions on bidding participation by unfair traders
1) Significance
2) Reasons and period of sanctions
3) Procedure for restricting bidder eligibility
4) Effect, notification and confirmation of restrictions on bidder eligibility
3.
Imposition of fines
Chapter 12 Large-scale construction contracts
1.
Special provisions regarding large-scale construction contracts
1) Meaning (Article 79 of the National Territory Ordinance, Article 95 of the Land Territory Ordinance)
2) Announcement of target construction projects such as alternative bidding or design-build joint bidding
3) Determination of estimated price
4) Bidding and selection of successful bidder
2.
International bidding
1) International bidding target institutions and amounts
2) International tender notice
3) Principles of international bidding
4) Application of contracts and international trade practices
Appendix 1.
How to handle attachment and deposit of debts
Appendix 2.
Contract documents
Appendix 3.
Q&A Cases
1.
Concept and characteristics of public contracts
1) Requirements for the establishment and validity of a contract
2) Freedom of contract and its limits
2.
Public contract laws and enforcement agencies
1) Basic laws on public contracts
2) Other laws and regulations related to public contracts
3) Contract regulations
4) Execution agency of public contracts
3.
Public contract procedures
1) General procedures for public contracts
2) Bidding and contract flow chart
3) Construction industry system and construction execution process
Chapter 02 Deliberation and Preliminary Procedures
1.
Quality
1) Type of contract
2) Method of contract
3) Eligibility for performance
2.
Completion of preliminary procedures
1) Contract review
2) Contract review
3) Daily Gratitude
4) Construction technology review
5) Pre-disclosure of purchase specifications for goods and services (local contracts only)
6) Others
Chapter 03 Types of Public Contracts
1.
Contracts that generate revenue and contracts that generate expenditure
1) Contracts that give rise to income
2) Contract causing expenditure
2.
Classification according to the subject matter of the contract
1) Construction contract
2) Service contract
3) Goods contract
3.
Classification by contract type
1) Confirmed contract, preliminary contract, and post-cost review conditional contract
2) Total contract and unit price contract
3) Long-term continuous contract, single-year contract, continuous non-contract, single-year incremental contract
4) Sole contract and joint contract
5) Comprehensive contracts and contracts before the start of the fiscal year
6) Multiple competitive bidding for similar items
7) 2nd stage competitive bidding
8) Simultaneous bidding for specifications and prices
9) Conclusion of contract through negotiation
10) Determination of successful bidder through design competition
4.
Classification by competition type
1) General bidding contract
2) Limited bidding contract
3) Designated bidding contract
4) Veterinary contract (local contract)
5) Prohibition of split orders and contracts for construction work
6) Pre-disclosure of purchase specifications for goods and services (local contracts only)
7) Execution of contracts involving a mixture of goods, services, and construction work
8) Announcement of matters related to subcontracting (government bidding and contract execution standards, local government bidding and contract execution standards)
Chapter 04 Using the National Market
1.
Overview of the National Procurement Service
1) What is the National Marketplace (G2B)?
2) Development process of the national marketplace
3) Characteristics of the national marketplace
4) Composition of the national market
5) Main functions of the national marketplace
6) Key laws and operating regulations related to the national marketplace
2.
Electronic bidding execution
1) What is electronic bidding?
2) Bid Notice
3) Act on the Use and Promotion of Electronic Procurement
4) Special Notes on Electronic Bidding
5) National Integrated Electronic Procurement System Terms of Use
6) When SMS is sent from the national marketplace
3.
How to use electronic contracts
1) What is an electronic contract?
2) Contract classification and successful bidder determination method
3) Act on the Use and Promotion of Electronic Procurement
4) Conclusion of the contract
5) Components of an electronic contract
6) Stamp duty on electronic documents
7) Stability of electronic contracts
8) Benefits of electronic contracts
9) Electronic contract usage history
4.
Electronic bidding and electronic contract processing procedures
1) General contract procedures
2) Electronic Bidding Notice
3) Electronic gate
4) Electronic contract (goods)
5.
Comprehensive shopping mall
1) Overview of the comprehensive shopping mall
2) Purchase process using the search bar
3) Purchase process using shopping categories
4) Purchase procedure using the authentication mall/theme mall
5) How to purchase
6.
Multi-Supplier Contracting System (MAS Stage 2)
1) MAS Phase 2 Overview
2) Processing procedure
3) Notice of Proposal for Phase 2 Competition with Multiple Suppliers
4) Multiple supplier two-stage competitive evaluation criteria
7.
Electronic Bidding Errors and Disputes: Cases and Response Methods
1) Case-by-case response methods for errors during the opening of the National Procurement Service
2) Dispute types and handling methods
Chapter 05 Bidding Procedure
1.
Work flow chart
2.
Bidding and Contract Process Flowchart (for Qualification Review)
1) Bidding
2) Opening and bidding
3) Electronic bidding system
3.
Details of each bidding procedure
1) Budget execution deliberation
2) Review the appropriateness of cost calculation
3) Determining the contract method
4) Bid Notice
5) Preparation, placement, inspection, and issuance of bidding-related documents
6) Description of the construction site
7) Application for participation in bidding
8) Submission of bid
9) Establishment, postponement and invalidation of bidding
10) Bidding in special cases
Chapter 06 Estimated and Projected Prices
1.
concept
1) Estimated price
2) Estimated price
2.
Method and criteria for determining the estimated price
1) Method of determining the estimated price
2) Criteria for determining the estimated price
3.
Procedure for determining the estimated price of a competitive bid through a qualification examination
1) Write the basic amount
2) Confirmation of base amount
3) Disclosure of base amount
4.
Calculation of multiple reserve prices (applicable only to small-sum contracts and qualification examinations)
1) Preparation of multiple reserve prices
2) Determination and disclosure of the estimated price based on multiple reserve prices
3) Unit appreciation of the expected price
5.
Estimated price determination based on appraisal price, transaction example price, and estimated price
1) Determination of estimated price based on appraisal value
2) Estimated price determination based on the estimated price
3) Determination of expected price based on transaction example price
6.
Determination of estimated price based on cost calculation
1) Concept of cost accounting
2) Composition of manufacturing costs
3) Calculating construction costs
4) Calculation of academic service costs
Chapter 07 How to Determine the Successful Bidder
1.
Bidding process
1) Method of determining the successful bidder
2) Types of methods for determining the successful bidder
2.
Qualification Review System
1) Concept
2) Legal basis
3) Method of determining the successful bidder
4) Qualification screening guidelines and procedures
3.
Bidding and Estimated Price Determination
1) Bidding Notes (Local Government Bidding and Contract Execution Standards, Chapter 1, Section 1-7)
2) Determine the expected price
3) Estimated price determination procedure
4.
How to handle decimal points during qualification screening
1) Public Procurement Service (national contract)
2) Local governments
5.
Eligibility criteria
1) Qualification review evaluation items
2) Qualification screening evaluation criteria and evaluation methods
3) Construction experience performance evaluation
4) Submission of construction performance and evaluation criteria
5) Management status evaluation method
6) Price evaluation
Chapter 08 Conclusion and Performance of Contracts
1.
Conclusion of the contract
1) Contract conclusion period (Chapter 11, Local Bidding Contract Standards, Notice of Bidding)
2) Preparation of the contract
3) Contract deposit and performance guarantee of construction contract
2.
Performance of the contract
1) Performance of the contract
2) Supervision of contract performance
3) Resident participation supervision system for construction performance
3.
Termination and termination of the contract
1) Significance
2) Reasons for cancellation and termination
Chapter 09 Adjustment of Contract Amount
1.
survey
2.
Adjustment of contract amount due to price fluctuations
1) Adjustment requirements (Article 64 of the National Tax Service Ordinance, Article 73 of the Land Tax Service Ordinance)
2) Criteria for calculating the adjustment amount
3) Adjustment of contract amount according to item adjustment rate
4) Adjustment by index adjustment rate (Article 74 of the National Tax Code, Article 72 of the Local Tax Code)
3.
Adjustment of contract amount due to design change
1) Meaning (Article 65, Paragraph 1 of the National Territory Ordinance, Article 74, Paragraph 1 of the Land Ordinance)
2) Contract amount adjustment unit price (Article 65 of the National Budget Act, Article 74 of the Land Budget Act)
3) Method of adjusting contract amount, etc. (Article 65, Paragraph 2 of the National Tax Service Ordinance, Article 74, Subparagraph 3 of the Land Tax Service Ordinance)
4.
Adjustment of contract amount due to changes in contract terms
1) Meaning (Article 66 of the National Territory Ordinance, Article 75 of the Land Territory Ordinance)
2) Other major types of changes to contractual terms (authoritative interpretation cases)
3) Adjustment criteria
Chapter 10 Inspection, Payment of Fees, and Liquidated Damages
1.
test
1) Significance
2) Inspection period
3) Inspection method
4) Prohibition of concurrently holding supervisory and prosecutorial positions
2.
Payment of price
1) Payment of the standard salary (gold) or the standard salary (partial salary)
2) Payment of semi-supply or full payment (complete payment)
3) Payment of advance payment (Article 26 of the National Treasury Management Act, Article 35 of the Local Accounting Act)
3.
Confirmation of payment of subcontracting fees and labor costs
1) Significance
2) Confirmation of payment of subcontracting fees and direct payment, etc.
3) Confirmation of classification, management, and payment of labor costs in construction contracts
4.
Delay liquidated damages (delay compensation)
1) Significance
2) Collection rate and method of late payment penalty
3) Exemption from penalty for delay
4) Delay compensation and extension of contract period
Chapter 11 Defect Repairs and Sanctions against Unfair Trade Practices
1.
Defect repair and defect warranty liability
1) Significance
2) Defect warranty period and defect inspection
3) Defect repair deposit
2.
Restrictions on bidding participation by unfair traders
1) Significance
2) Reasons and period of sanctions
3) Procedure for restricting bidder eligibility
4) Effect, notification and confirmation of restrictions on bidder eligibility
3.
Imposition of fines
Chapter 12 Large-scale construction contracts
1.
Special provisions regarding large-scale construction contracts
1) Meaning (Article 79 of the National Territory Ordinance, Article 95 of the Land Territory Ordinance)
2) Announcement of target construction projects such as alternative bidding or design-build joint bidding
3) Determination of estimated price
4) Bidding and selection of successful bidder
2.
International bidding
1) International bidding target institutions and amounts
2) International tender notice
3) Principles of international bidding
4) Application of contracts and international trade practices
Appendix 1.
How to handle attachment and deposit of debts
Appendix 2.
Contract documents
Appendix 3.
Q&A Cases
GOODS SPECIFICS
- Date of issue: March 3, 2024
- Format: Hardcover book binding method guide
- Page count, weight, size: 816 pages | 188*257*40mm
- ISBN13: 9788970930299
- ISBN10: 8970930299
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