Re-selection of Garak Samik Construction Company... Gaepo Jugong 5th Complex Faces Two-Way Contest

Competition Among Construction Companies for Reconstruction Contracts in Gangnam 3 Districts
Garaksamik Holds Second Briefing After One Failed Attempt
Daewoo and POSCO Face Off in Gaepo Jugong 5 Complex

Major construction companies have rolled up their sleeves to win reconstruction projects in the three Gangnam districts of Seoul.

Perspective View of Garak Samik Mansion Reconstruction Project

The Garak Samik Mansion Reconstruction Maintenance Project Association in Songpa-dong, Songpa-gu, Seoul, has announced a bidding notice for the selection of a construction company and will hold the second on-site briefing session on the 28th. The association proposed a construction cost of 8.1 million KRW per pyeong (3.3㎡), with a total construction cost of 634.3 billion KRW. The deadline for bid submission is April 15, and a bid deposit of 60 billion KRW must be paid at least three days before the bid deadline.

Garak Samik Mansion is a mid-rise complex consisting of 14 buildings and a total of 936 households, completed in 1984, located between Ogeum Station on lines 3 and 5 and Bangi Station on line 5. The project received implementation approval last November, and after reconstruction, it will be rebuilt into 16 buildings ranging from three basement floors to 30 above-ground floors, with 1,531 households.

The Garak Samik Mansion association is selecting a construction company for the second time this round. No construction companies submitted bids in the bidding held on the 16th. Eight construction companies, including Hyundai Engineering & Construction, Daewoo Engineering & Construction, GS Engineering & Construction, POSCO E&C, HDC Hyundai Development Company, Kumho Construction, Dongbu Construction, and Hyosung Heavy Industries, attended the on-site briefing session for the bidding. Before the bidding, Daewoo E&C and Hyundai E&C submitted letters of intent to bid. However, Daewoo E&C withdrew from the bidding, and the selection process was canceled as the competitive bidding requirements were not met. Some pointed out that the association's conditions, such as high-end finishing materials and expansion of underground parking, made the construction cost somewhat low considering the rise in raw material prices.

Daewoo E&C decided not to participate in this bidding after internal review. On the other hand, Hyundai E&C stated, "We intend to participate in the bidding." HDC Hyundai Development Company and Samsung C&T are weighing their participation. An HDC Hyundai Development Company official said, "We are interested but still reviewing whether to participate in the bidding." An association official said, "If the competitive bidding fails again, there is a possibility of a private contract, but it is not yet the stage to discuss specifics."

Overview of Gaepo Jugong Complex 5 and 6

Daewoo E&C and POSCO E&C are showing strong intentions to win the bid for Gaepo Jugong 5 Complex in Gaepo-dong, Gangnam-gu, which is scheduled for bidding on April 5. Ten companies, including Hyundai E&C, Daewoo E&C, GS E&C, POSCO E&C, and HDC Hyundai Development Company, participated in the on-site briefing held on the 20th. The Gaepo Jugong 5 Complex association proposed a construction cost of 8.4 million KRW per 3.3㎡, with a total construction cost of 697 billion KRW. To compete, companies must submit a bid participation commitment letter within seven days.

Daewoo E&C and POSCO E&C are actively pursuing the bid. Neither company has previous records of winning reconstruction projects in Gaepo-dong. A Daewoo E&C official said, "We are actively reviewing to focus on winning the Gaepo Jugong 5 Complex project," adding, "We plan to apply the Summit brand, which was introduced in Seocho and Banpo, to Gaepo as well."

Gaepo Jugong 5 Complex is an apartment complex with 940 households, completed in 1983. After reconstruction, it will be reborn as 14 buildings ranging from four basement floors to 35 above-ground floors, with 1,279 households. If the construction company bidding proceeds as scheduled, a general meeting for selecting the construction company will be held in May, followed by management disposition approval in early 2025. The reconstruction projects for Gaepo Jugong 1 to 4 Complexes have already been completed, with Hyundai E&C, HDC Hyundai Development Company, Samsung C&T, and GS E&C selected as construction companies.