Turnkey contract system is an effective delivery system for the ordering organizations that technical engineers are insufficient for their construction projects. It is possible not only to reduce project duration but also to improve project quality in an integrated contract system between design and construction. But the lowest-price-based bid system has threatened the safety of facilities by use of cheap and low-quality materials, unreasonable low-priced subcontracting and use of low-graded technical manpower and so on. Also it has caused the industrial foundations to be destroyed through low profitability of construction companies.

However along with the amendment of 'the Law of the Contract Targeting on the Nation' in June 2006, the lowest-price-based bid system was extensively applied to all the works estimated at over ￦30 billion. Before this expansion, the lowest-price-based bid system is regarded as a problem only to large construction companies. However, after the extensive application of the system to all the works which amounts over $30 billion, it is not problem only for large construction companies any longer.

This paper intended to figure out the problems of the lowest-price-based bid system according to the analysis of its current status. According to the research , it was found that bidders offered the lowest price for indirect labor fee, other expenses, and general management costs for which a statement giving the reason for low price is not required. It is estimated these cause improper low-price bidding.