"No Construction Cost Increase Due to Price Inflation"
Association to Finalize Contractor Selection at This Month's General Meeting
Samsung C&T has reportedly proposed to take full responsibility for securing up to 2 trillion KRW in project costs and assured no increase in construction costs due to inflation in relation to the reconstruction project of Gwacheon Jugong Complex 10 in Gyeonggi Province, for which it was selected as the preferred construction negotiation partner.
According to the maintenance industry on the 3rd, Samsung C&T, which submitted a solo bid twice for the selection of the construction company for Gwacheon Jugong Complex 10, was chosen as the preferred negotiation partner at the union delegates' meeting on the 20th of last month. The union plans to put the final selection agenda to a vote at the general meeting on the 28th of this month.
Samsung C&T proposed the new complex name 'Raemian One Majesty' (RAEMIAN ONE MAJESTY) to the union. The name combines ‘ONE,’ meaning a single premium residence, with ‘MAJESTY,’ signifying status and honor.
From a project perspective, Samsung C&T promised to fully secure project costs up to 2 trillion KRW. They plan to provide 120 billion KRW in essential project expenses, including various service fees, entirely interest-free, and support monthly settlement stability funds of 3 million KRW per household during the relocation period. Additionally, the union will require 100% payment of household-specific contributions upon move-in, and all income from paid options for general sales (such as floor finishing selections) and byproduct materials generated during demolition will be fully allocated to the union.
Most notably, amid conflicts over construction cost increases between unions and contractors due to high interest rates and rising raw material prices, Samsung C&T informed the union that there will be no increase in construction costs due to inflation up to the start of construction and after actual construction commencement.
The proposal for specialized complex design also stands out. Samsung C&T plans to apply the future-oriented housing model 'Next Home,' unveiled in August this year, to Gwacheon Jugong Complex 10 for the first time. Next Home features the concept of 'designing space as desired,' allowing residents to directly design everything from the number of rooms to the location of bathrooms. It utilizes a modular system and a 'furniture wall' that can move freely and itself serves as a wall.
The housing types will be diversified, including 133 terrace houses, 9 penthouses, 37 duplex living room types, 53 household separation types, and 529 units with hidden kitchen structures. Furthermore, the project will apply the highest seismic grade design for the framework for the first time in Gwacheon City and design fireproof walls on the rear and both sides of parking spaces to prepare for electric vehicle fire accidents. Sprinklers will also be installed on the parking lot floor.
Gwacheon Jugong Complex 10 is the last reconstruction complex in the area, consisting of 5 above-ground floors and 632 households, with a low floor area ratio (86%), making it a highly viable project. Samsung C&T plans to reconstruct this complex into 1,179 households ranging from 3 basement floors to 28 above-ground floors.
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