Research Reports

Prime Contractor Team Contracting(PCTC), whose structure is different from the general production system of construction projects, was introduced to the construction industry in Korea as an alternative upon the abolition of the bidding and award system accompanied with subcontractors in 1999. This system is considered a representative system for the protection of specialty contractor industry(preservation of the status of specialty contractors and prevention of illegal subcontracting) whose application was accelerated according to the abolition of the mandatory subcontracting system in 2008. Recently, the government completed the system readjustment to enable mutual entry of comprehensive contractors and specialty contractors into each other’s market after 2021 through the reorganization of the production system for the construction industry. Through this, the minimization of disputes between industries, direct construction, and cooperation for co-prosperity are expected by breaking down the existing boundaries between industries. However, the Ministry of Strategy and Finance recently announced that it would consider abolishing the limit on the amount of fund applied to PCTC during the second half of 2020 through the 'Three Innovation Plans for the Public Contract System'. Currently, PCTC is considered to have lost its purpose of introducing the system due to other subcontracting regulations that are operating in a layered manner, the growth of specialty contractors, and reorganization of the production system. In this respect, it is expected that PCTC will be a major issue of much debate in the future. Thus, this study examined the contents, history, and the current application status of the system, focusing on PCTC. In addition, various issues such as limitations of the system itself, achievement of the purpose of introduction, problems in the current system and operation, and connection with the reorganization of the production system were derived for each sector. Finally, based on the results of various surveys and reviews, nine institutional improvement plans for PCTC in the future were proposed.