Sanggye Jugong 5 Complex Construction Company Selection Canceled… GS Construction "Considering Compensation Claim"

The Sanggye Jugong 5 Complex in Nowon-gu, Seoul, which had been experiencing internal conflicts within the association over construction costs, has canceled the selection of GS Construction as the 'reconstruction contractor.'

Sanggye Jugong 5 Complex, Nowon-gu, Seoul.

According to the maintenance industry on the 27th, the Sanggye Jugong 5 Complex in Nowon held a general meeting of all owners on the 25th and decided to cancel the selection of GS Construction as the contractor. Completed in 1987, the Sanggye Jugong 5 Complex consists solely of units with an exclusive area of 31.98㎡ and currently has 840 households in buildings up to 5 stories. Through reconstruction, it was planned to be transformed into 5 buildings with 996 households, ranging from 3 basement floors to a maximum of 35 floors above ground.

The project executor for the Sanggye Jugong 5 Complex, which is proceeding under a trust method, is Korea Asset Trust, and GS Construction was selected as the contractor in January.

Previously, GS Construction proposed a construction cost of approximately 6.5 million KRW per 3.3㎡. Among residents, concerns arose that this cost might increase by 10% from the initial estimate. It was also estimated that existing owners would have to pay a contribution fee in the 500 million KRW range to purchase the standard 84㎡ units.

Additionally, some owners pointed out that the 48-month construction period was excessively long, and dissatisfaction with the contractor surfaced following the incident in Geomdan New Town, Incheon.

Regarding this, a GS Construction representative stated, "There had been differences of opinion within the association due to low project profitability and unfavorable construction conditions," and added, "It is correct that the contractor selection has now been canceled." They also mentioned, "We are currently reviewing claims for compensation for costs incurred after the contractor selection."