[Asia Economy Reporter Yoo In-ho] Hyundai Engineering & Construction, Daelim Industrial, and GS Engineering & Construction, which have entered the bidding for the construction rights of the Hannam 3 District redevelopment project in Yongsan-gu, Seoul, held the first joint briefing session for union members on the 4th.
At the briefing held at J-Grand House in Jangchung-dong, Jung-gu, Seoul, the final bid proposals from the construction companies were disclosed.
According to the bid proposal comparison table prepared by the union, the project loan amounts were Hyundai Engineering & Construction over 2 trillion won, Daelim Industrial 1.6 trillion won, and GS Engineering & Construction 1.5 trillion won, in that order.
Regarding relocation support, Hyundai Engineering & Construction and Daelim Industrial pledged to provide 100% loan-to-value (LTV) on mortgage loans, while GS Engineering & Construction proposed an LTV of 40% for basic relocation costs and 50% for additional relocation costs.
The construction start times were ▲ GS Engineering & Construction within 3 months after relocation ▲ Daelim Industrial within 4 months after relocation ▲ Hyundai Engineering & Construction within 6 months after relocation, respectively.
The construction periods proposed were ▲ Daelim Industrial within 35 months after commencement ▲ GS Engineering & Construction within 36 months after commencement ▲ Hyundai Engineering & Construction within 37 months after commencement.
Hyundai Engineering & Construction stated that there would be no increase in construction costs up to the cost calculation month (June 2022), and no increase in construction costs due to inflation after the start of construction.
Daelim Industrial said there would be no increase in construction costs due to inflation until the construction base date (August 2022).
GS Engineering & Construction proposed that there would be no increase in construction costs until July 2022, but thereafter, the lower rate of change between the consumer price index and the Korea Institute of Civil Engineering and Building Technology’s actual construction cost index would be applied.
Previously, these three companies participated in last year’s bidding, but as the bidding competition overheated, they underwent special inspections by the Ministry of Land, Infrastructure and Transport and Seoul City, as well as a prosecution investigation. Although the three companies were cleared by the prosecution, the bidding was invalidated, requiring a re-bidding process.
The Hannam 3 District redevelopment project is a project with an estimated construction cost of 1.888 trillion won. It involves constructing 197 buildings with 6 basement floors to 22 above-ground floors, 5,816 households, and neighborhood living facilities in the 686 area of Hannam-dong, Yongsan-gu, Seoul.
The union plans to hold a preliminary vote for the constructor on the 14th, and a second joint briefing session and constructor selection general meeting on the 21st.
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