GS E&C banned from public bidding for violation of subcontracting act
GS E&C banned from public bidding for violation of subcontracting act
  • Kim Min-jee
  • 승인 2019.04.18 06:30
  • 댓글 0
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The Fair Trade Commission has asked the Public Procurement Service and local governments to restrict GS E&C from participating in the bidding, saying the builder's penalty for violating the subcontracting law has accumulated. There is no clear rule on the period and scope of the bidding, but it is likely that GS E&C's public bidding participation will not be possible for months.

"GS E&C has scored seven penalty points for violation of subcontracting laws over the past three years, exceeding the five points, which is the standard for requesting ban on participation in bids under subcontracting laws," the Fair Trade Commission said on April 17. "We have decided to ask related administrative agencies to restrict the builder's participation in public bidding."

From April to September 2017, the Fair Trade Commission slapped GS E&C with one warning, one correction order and two fines, respectively, due to unfair demands for economic benefits and unpaid bills. The penalty points it received are seven points in total.

It is the first time that a large construction company has been restricted from participating in public bidding due to accumulation of violations of the subcontracting law.

"We understand that the Public Procurement Service has allowed POSCO ICT to bid due to differences in interpretation of the National Contract Law," an FTC official said. "But since GS E&C has long been a partner in the contract, there will be no major problems in restricting its participation in bidding."


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