LH, GS·Dongbu·Daebo Construction Bid Ban... "Will File Injunction Request"

One-Year Ban on Bidding for Public Institution Construction Projects
No Effect Until Judgment if Suspension of Execution Request Is Accepted

GS Construction, Dongbu Construction, and Daebo Construction have been subjected to a one-year public construction bidding ban by the Korea Land and Housing Corporation (LH), the client.

On the 3rd, GS Construction and Dongbu Construction announced that they received a notification from LH restricting their eligibility to participate in bids for a certain period. According to this measure, these companies will be prohibited from participating in bids for public construction projects ordered by domestic public institutions from the 22nd of this month until May 21 of next year, for one year.

LH stated the reason for the bidding restriction as "because they were contractors for the Incheon Geomdan AA13-1BL Section 5, AA13-2BL Section, and Incheon Sinmun Apartment construction projects who performed improper construction that shortened the durability period of structures and caused safety hazards, contrary to the design documents."

An LH official said, "Yesterday, a contract review committee meeting was held regarding poor construction and supervision companies, and it was decided to impose bidding restrictions on GS Construction, Dongbu Construction, Daebo Construction, and others."

According to the Enforcement Rules of the National Contract Act, those who perform improper construction such as shortening the durability period of structures or causing safety hazards contrary to the design documents may be subject to a one-year bidding participation restriction.

GS Construction and Dongbu Construction stated that they plan to file for a suspension of execution and a lawsuit to cancel the disposition. A GS Construction official said, "If the suspension of execution is accepted, there will be no impact on bidding eligibility until the ruling on the cancellation lawsuit."

Previously, GS Construction received business suspension penalties of 8 months and 1 month from the Ministry of Land, Infrastructure and Transport and Seoul City, respectively, related to the collapse accident of the underground parking lot at the Incheon Geomdan apartment. Regarding this, the court accepted GS Construction's application for suspension of the business suspension penalty execution, and the main lawsuit is currently ongoing.