The amendments to the Government Procurement Act were promulgated by the presidential order on 6 January 2016. The amendments consist of modifications and additions to the provisions with respect to the schedule and review procedure of the contractual payments paid by the procuring entity, the mediation procedure, and organization of government contract disputes. Major aspects of the amendments to the Government Procurement Act are as follows:
1. Stipulating the schedule of contractual payments paid by the procuring entity (Article 73-1)
This amendment is to stipulate the schedule and review procedure of contractual payments paid by the procuring entity. Regarding the payment schedule and review procedure for the procurement of construction work, unless otherwise provided in a specific agreement, the procuring entity shall complete the review within 15 days subsequent to receipt of application of progress payments or the completeness of stage work, and shall fulfill the payments within 15 days subsequent to receipt of the supplier's invoice. If it is necessary for the procuring entity to notify the supplier to correct the documents, the notification shall be limited to one time rather than multiple times. The provisions with respect to the schedule and review procedure of contractual payments for the construction work procurement shall apply mutatis mutandis to the procurement of property or service. Thus, the supplier will be entitled to claim interest or delay damages if the procuring entity delays the payments.
2. Modifying the scope of compulsory arbitration and stipulating that CRBGP shall propose a proposal or resolution for mediation (Article 85-1)
The provision of compulsory arbitration only applies to the construction work procurement before the amendments. This amendment modifies such provision to also apply to the service of professional engineering. Thus, the services related to professional engineering, including professional construction management, design, and supervision, is also subject to the provision of compulsory arbitration. In addition, the amendment also stipulates that CRBGP shall propose a proposal or resolution for mediation. This will prevent CRBGP from directly making the statement of unsuccessful mediation due to the gap between the procuring entity and the supplier.
3. Modifying the maximum of CRBGP members (Article 86)
In order to increase the efficiency and quality of dispute mediation, this amendment increases the maximum number of CRBGP members from twenty-five to thirty-five.