Daewoo Engineering to offer bid incentives to subcontractors with top safety ratings

Daewoo Engineering announced Tuesday that it has launched a subcontractor safety rating system to strengthen safety management capabilities among its partner firms and promote a safety-first construction culture.

Under the system, the company objectively evaluates each subcontractor's safety management standards, offering bid incentives to top-rated firms while progressively restricting bid participation for those with inadequate safety practices. The system was designed to raise subcontractors' autonomous safety management capabilities and embed safety as a core element of business competitiveness.

Assessments draw on on-site and head-office safety evaluations as a baseline and also incorporate safety ratings — including SH and SA grades — issued by credit rating agencies to produce a comprehensive picture of each subcontractor's safety standing.

Particularly significant is the system's departure from price-only subcontractor selection, as safety management capability is now factored into evaluations. When selecting preferred negotiating partners, the company applies an adjusted evaluation price calculated by deducting a safety-grade incentive amount from the bid price, giving subcontractors with stronger safety records a more favorable assessment. However, final contracts are concluded based on the actual bid price, creating an evaluation framework that weighs both price competitiveness and safety management capability.

Daewoo Engineering is also continuing to expand its mutual-growth cooperation with subcontractors. The company holds an annual mutual-growth forum for top-performing partner firms to share management direction and discuss system improvements, and offers those firms a range of benefits including contract priority, bid participation rights and reductions in contract performance deposits.

The company also operates a mutual-growth fund providing low-interest financial support to ease the financial burden on subcontractors. It recently introduced scholarship support for children of subcontractor employees and a childbirth gift program, expanding practical assistance aimed at improving employee welfare and sustaining long-term mutual growth.

"Safety is the most important value we build together with our subcontractors," a Daewoo Engineering official said. "We will continue to pursue a wide range of support measures and system improvements to raise subcontractors' safety capabilities, and expand practical mutual-growth programs covering financial support, welfare and education, so we can build a construction ecosystem where we grow together."

Meanwhile, Daewoo Engineering said it secured cumulative orders worth approximately 2.92 trillion won ($1.89 billion) from urban redevelopment projects in the first half of this year alone.