In recent years, medium sized construction companies are losing opportunities to participate in construction projects as the number of public construction projects is decreasing and that of private construction projects is increasing in Korea. The government is implementing policies to boost and protect small and medium construction companies in the provinces. However, these are not preventive measures. As small and medium construction companies account for 90% of construction companies in Korea, the impact of these companies on local economy is huge. As a result, it is very important to provide opportunities for small and medium construction companies to participate in the bidding. This study presents short term and long term methods to enhance their chance of winning projects by analyzing their bidding types and policy status.
For this study, the bidding system for small and medium construction companies in Gyeongsangnam-do was analyzed. The analysis revealed several problems; they are becoming weak due to the increasing number; the government support policies are insufficient; opportunities to participate in bidding decreased due to reduced public budget for construction; and they lack competitiveness because they do not have excellent technology.
Therefore, this author presents a method to expand the opportunities to participate in the bidding by squeezing out weak companies and improving the existing bidding types. In addition, a long term method to acquire competitiveness by adopting CM, best value bid system, and information technology is presented. When they acquire competitiveness in winning construction contracts using these methods and produce profits continuously, they will be able to contribute to the vitalization of local economy.