Seoul City Conducts On-Site Inspections at 8 Redevelopment Sites with Construction Cost Increase Disputes

Monthly Monitoring of Construction Cost Increases and Contract Status
Investigation of Requested Increase Amounts, Reasons, and Negotiation Status

Seoul City will conduct on-site inspections from the 11th to the 22nd at eight redevelopment project sites where conflicts between the associations and construction companies have arisen due to increased construction costs.

Redevelopment site in Seoul viewed from the 63 Building observatory. Photo by Hyunmin Kim kimhyun81@

The city monitors the status of construction cost increases and contract changes every month. For sites where construction companies requested cost increases in February, officials will visit directly to prevent potential conflicts during negotiations and will proactively mediate and arbitrate if conflicts occur.

The on-site inspections will be jointly conducted by Seoul City, district redevelopment project departments, and Seoul City's specialized redevelopment project coordinators. They will check the reasons for cost increases, detailed increase breakdowns, and the progress of negotiations between the associations and constructors.

Additionally, they will review △ project overview and contract status △ history of previous construction cost verifications, whether the site is subject to cost verification, and implementation plans △ requested increase amounts and reasons, detailed breakdowns △ negotiation history and opinions between the association and constructor △ and future negotiation schedules.

For redevelopment projects where negotiations are expected to be delayed for a long time based on the investigation results, Seoul City will actively work to prevent construction cost conflicts by coordinating with the association, constructor, and district office to dispatch construction cost verification teams and Seoul City conflict resolution coordinators.

Earlier, the Seoul Housing and Communities Corporation (SH Corporation) also established personnel and organizations to carry out construction cost verification tasks and has been implementing these tasks since this year. After a pilot project in the first half of the year, full-scale verification work for redevelopment projects within Seoul will begin in the second half.

Han Byung-yong, Director of Seoul City's Housing Policy Office, stated, "Through continuous monitoring and on-site inspections of redevelopment projects, we will identify the causes of construction cost conflicts in advance and actively mediate and arbitrate to prevent delays in projects and damages to association members caused by such conflicts."