Construction Cost Dispute Halts Sejong Joint Campus... Construction Resumes After 13 Days

Construction of the Sejong Jiphyeon-dong Joint Campus, which was halted on the 5th due to conflicts over increased construction costs, will resume from the 18th.

The client, Korea Land and Housing Corporation (LH), announced on the 15th, "After several consultations with the contractor, it was decided to resume construction from the 18th."

LH plans to make efforts to ensure that the originally scheduled opening in September proceeds without disruption, considering the symbolic importance of the joint campus as a national policy project necessary for balanced regional development and talent cultivation.

The contractor, Daebo Construction, is reported to have reached a consensus regarding the increase in construction costs and agreed to proceed with the construction after mutual consultations.

The Sejong Joint Campus construction project involves developing a total of nine buildings on approximately 58,000㎡ of land in Jiphyeon-dong, Sejong City, including five university residence buildings, a Bio Support Center, an Academic and Cultural Support Center, a Student Union Building, a Gymnasium, and a parking lot.

Deputy Director Eom Jeong-hee of the Happy City Agency inspecting the joint campus construction site
(Sejong=Yonhap News) Eom Jeong-hee, Deputy Director of the Administrative City Construction Agency (center), visited the joint campus construction site in Jiphyeon-dong (4-2 Living Zone) on the 23rd to check the progress of the construction. February 23, 2024 [Provided by Happy City Agency. Resale and DB prohibited]
sw21@yna.co.kr
(End)


＜Copyright (c) Yonhap News, unauthorized reproduction, redistribution, AI training and use prohibited＞

Daebo Construction, which won the contract from LH in 2022, halted construction on the 5th, stating that negotiations over increased construction costs with LH were not progressing properly. This is the second construction halt following the one from October 17 to 26 last year.

The conflict between LH and Daebo Construction arose when LH requested that the completion of four out of the nine buildings be moved up by about six months.

Daebo Construction proceeded with the construction by investing additional costs on its own to shorten the schedule, but due to a combination of factors such as ready-mix concrete supply disruptions, rising raw material and labor costs, and the Cargo Solidarity strike, it suffered significant losses and has been demanding an increase in construction costs from LH.