The purpose of this study is to suggest policy measures for vitalizing the prime contractor team contracting in local government contract. General contractors and specialty contractors are currently in confrontation with each other about the prime contractor team contracting in many respects such as team consisting, responsibility of construction management, responsibility concerning the occurrence of defects, adjustment cost of prime contractor and so on. Recognizing the importance of these problems, the study analyses the reality and problems of the current prime contractor team contracting and conducts survey targeting contract officers and general & specialty contractors. Then, based on the analytical results of the current system and survey, the study suggests some policy proposals as follows: Firstly, the cooperation between general contractors and specialty contractors should be enhanced through sustainable team contracting. Secondly, detailed guidelines on work types between general and specialty contractor should be provided to clarify management responsibility of team members. Thirdly, the constructors with participation records regarding the prime contractor team contracting should be given incentives. Fourthly, the continuous education and information for recognition and formation of consensus needs to be done.