| Title |
A Study on Improving Performance Bond System for Efficient Execution of Public Construction Works |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2020.21.4.021 |
| Keywords |
Performance Bond in Construction; Selecting Construction Company for Bond Liability; Remaining Works; Defects Liability |
| Abstract |
This study analyzed problems of operating performance bond for public works and derived some suggestions for improvement. The Contract Law for Government Owner requires to submit performance bond which guarantees performing the construction contractor pays back compensation money when the obligation is not executed. Currently, first bid eligibility for participation is exactly required for executing company of performance bond obligation, not considering volume, technical level, and special type of remaining works. In collaboration contract, if guarantee accident occurs, it is obliged for remaining collaboration contractors to be qualified to fulfill the whole contract. This study proposes following improvement plan to solve problems of current performance bone in public works. Firstly, qualification criteria must be deregulated exceptionally for selecting proper contractor, which executing performance bond obligation, considering progress and characteristics of remaining works. Secondly, In collaboration contract, the prerequisite of remaining contractors’ should be deregulated as‘implementation requirement of the remaining works’from‘implementation requirement of the whole work’. Finally, defect responsibility should be included in liabilities of performance bond by specifying that owner or guarantee agency bear them. |