Lee & Ko's Procurement and Public Contract Dispute Team specializes in providing comprehensive legal services for disputes arising throughout the entire procurement and public contract process. Our team is dedicated to managing all aspects of these matters, ranging from proactive risk management to representation in administrative and civil litigation.

The procurement and public contract sector is inherently prone to disputes due to the application of diverse laws and standards at each stage—namely, bidding, contracting, and performance—coupled with frequent revisions to government policies and internal administrative guidelines. Consequently, distinct legal challenges emerge at every phase: (i) during the bidding and contracting phases, issues regarding procedural fairness and the legitimacy of contractor selection are paramount; (ii) during the performance phase, disputes often center on the interpretation and application of contract terms; and (iii) upon completion, critical issues arise concerning payment, defect liability, liquidated damages, and sanctions against dishonest contractors. These processes frequently involve a complex interplay of civil and administrative legal elements.

Our team comprises attorneys who possess a profound understanding of this intricate legal framework and boast extensive expertise in the public procurement sector. Our approach extends beyond traditional post-facto remedies; we actively engage from the preliminary review stages with contracting authorities and administrative agencies. By reconstructing key facts, clarifying core issues, and leveraging fundamental administrative law principles—such as proportionality and procedural justice—we effectively navigate complex legal challenges. This strategic approach has enabled us to achieve an excellent track record of securing exemptions or reductions of both administrative and contractual penalties for our clients.

In particular, we recognize that administrative sanctions (such as designation as a dishonest contractor or the imposition of surcharges) and contractual penalties (such as revocation of bidder or preferred negotiator status, forfeiture of bid bonds, and claims for liquidated damages or defect liability) are pivotal factors that often dictate the trajectory of subsequent preliminary injunctions, administrative lawsuits, and civil actions. Our team is highly experienced in handling these critical disputes and is well-equipped to devise the most effective solutions tailored to the specific nature of each case.

Furthermore, our expertise is not confined to disputes governed by the State Contract Act and the Local Contract Act, which have long constituted the core framework of the public procurement sector. We also possess substantial experience representing clients in public contracts entered by various public institutions (including public enterprises, quasi-governmental agencies, and other public bodies) as well as private entities entrusted with public duties. This breadth of experience allows us to formulate tailored dispute resolution strategies that account for the specific nature and procedural characteristics of each contract.

In summary, Lee & Ko's Procurement and Public Contract Dispute Team is committed to delivering optimal solutions across the full spectrum of procurement and public contract disputes. Our capabilities cover every stage of the process, from initial bidding and contractor selection to contract performance and post-completion issues.

Expertise

[Bidding Stage]
We provide legal counsel and represent clients in litigation related to the bidding process, involving issues such as the interpretation of evaluation criteria, the examination of bidder qualifications, and bidder selection. In particular, we have extensive experience handling urgent procedural matters at the bidding stage, such as preliminary injunctions to secure bidder or preferred negotiator status.

[Contract Execution and Performance Stage]
We provide legal counsel and represent clients in litigation regarding various issues arising during contract execution and performance, such as contract interpretation, termination, and the forfeiture of performance bonds.

[Post-Performance Stage]
We represent clients in civil and administrative disputes frequently arising in the post-performance phase, addressing key issues such as contract payment claims, the imposition of liquidated damages, defect liability, and compensation for damages.

[Disputes Regarding Sanctions and Contractual Penalties]
We provide legal counsel and represent clients in litigation concerning administrative sanctions (such as designation as a dishonest contractor or the imposition of surcharges), contractual penalties (such as liquidated damages and the forfeiture of performance bonds), and complex disputes involving both types of sanctions.

[Disputes Related to Price Fixing and Bid Rigging]
We provide counsel and represent clients in disputes involving allegations of price fixing or bid rigging. Our team possesses deep expertise in navigating the complex intersection of competition law and public procurement statutes.

[Disputes Related to Other Types of Public Contracts]
We offer tailored strategies for contracts executed by public institutions (including public enterprises, quasi-governmental agencies, and other public bodies) and private entities entrusted with public duties, which fall outside the direct scope of the State Contract Act or Local Contract Act. Our approach is designed to reflect the specific characteristics and procedural requirements inherent to each contract.

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Major Cases

[Disputes Related to Bidding and Preferred Negotiator Status]

Litigation regarding the selection and cancellation of the preferred negotiator status for the Daegu Development Project
Litigation regarding cancellation of the preferred negotiator status in the Paju Sewerage Pipeline Public-Private Investment Project
Representation of a corporation in a dispute over bidder selection (designation of preferred negotiator) in a public-private investment project
Dispute related to bidding for a port development project
Dispute related to bidding for the Pohang Yeongilman Harbor Breakwater Construction Project
Dispute related to bidding for the Gimpo Sewerage Pipeline Improvement Public-Private Investment Project
Dispute related to bidding for the Seoul-Yangpyeong Retention Basin Project
Litigation regarding bidding for the Daegu RDF Public-Private Investment Project
Litigation regarding confirmation of successful bidder status under the State Contract Act
Counsel and litigation for disputes related to bidding for information network construction projects commissioned by state agencies and local governments
Preliminary injunction regarding bidding for the Seoul Metropolitan Subway Transportation Card System Construction Project
Preliminary injunction regarding bidding for the Next-Generation Taxi Terminal Production, Supply, and Installation Project
Preliminary injunction regarding bidding for the Gyeonggi Provincial Police Agency Broadband Information Network Construction Project
Preliminary injunction regarding the selection of an investment operator for the Wando County Decrepit Security Light Improvement Project
Preliminary injunction regarding bidding for household sink purchases for the Daejeon Gwanjeo 5 A-2BL project
Preliminary injunction regarding bidding for the Three-Phase School Net Service Project
Preliminary injunction regarding the u-EXPO Integrated Information System and IT Infrastructure Construction Project
Preliminary injunction regarding bidding for the Local Education Administration and Financial Integration System Construction Project
Preliminary injunction regarding bidding for the Cheongju Incineration Waste Heat Public-Private Investment Project

[Disputes Related to Contractual Penalties and Performance]

Lawsuit concerning liquidated damages for the supply of unmanned aerial vehicles (UAVs)
Lawsuit concerning liquidated damages for the construction of a 3,000-ton class submarines
Counsel and litigation regarding the imposition of liquidated damages on a prime contractor due to a subcontractor's negligence
Disputes regarding contract payments and settlement
Disputes regarding defect liability
Disputes concerning damages due to suspension of construction

[Disputes Related to Administrative Sanctions]

Counsel and litigation regarding sanctioning dispositions for the submission of false performance records and contract non-performance.
Cases involving restrictions on bidding participation for merged corporations
Counsel and litigation regarding cases of submitting forged or altered documents leading to designation as a dishonest contractor
Litigation seeking the revocation of bidding restrictions imposed on Company A, a ready-mix concrete manufacturer, under the Act on Promotion of Purchase of SME Products
Cases involving bidding restrictions for projects commissioned by local governments

[Disputes Linking Bid Rigging and Fair Trade]

Counsel and representation in matters involving alleged bid rigging, covering administrative, criminal, and Korea Fair Trade Commission (KFTC) proceedings
Civil, criminal, and administrative litigation related to procurement rigging
Counsel and litigation for criminal cases involving bribery and fraud related to public contracts

[Disputes Related to Other Types of Public Contracts]

Disputes concerning entrustment contracts with public enterprises
Disputes arising from contract termination with private entities entrusted with public duties
Numerous contract disputes arising from operational guidelines of local governments

Key Contacts

Construction Construction Litigation Government Contracts Public Procurement & Government Contract Disputes Administrative Litigation Corporate Government Affairs Disputes Relating to Urban Redevelopment and Reconstruction Projects Commercial Trusts Disputes

Myung Jong KIM

Partner

T +82-2-2191-3049

E myungjong.kim@leeko.com

Construction Litigation Administrative Litigation Construction Real Estate Government Contracts Environment Public Procurement & Government Contract Disputes Energy Disputes

Je Hun YON

Partner

T +82-2-772-4443

E jehun.yon@leeko.com

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