Expansion of Service Application Period and Other Measures
Seoul City announced on the 16th that it will strengthen cost consulting and performance improvement services for private construction projects such as redevelopment and reconstruction to prevent construction cost disputes between associations and contractors.
The city plans to expand the application period for private construction cost consulting and performance improvement services to after the approval of the association establishment but before the selection of the contractor, and to provide customized consulting based on design documents. The city explained that this is intended to resolve disputes over construction costs and delays in construction periods caused by the lack of expertise in construction costs among associations.
Since 2015, the city has been providing private construction cost consulting services. Up to this month, it has conducted cost consulting for a total construction cost of 5.5212 trillion KRW for 20 associations, saving 310.1 billion KRW. Additionally, it has discovered and provided 812 ideas for performance improvements such as enhancing facility safety to the associations.
Sangbong Redevelopment Promotion District Bird's-eye View
Recently, services were provided for ‘Sangbong 7 District (urban maintenance-type redevelopment)’ in Jungnang-gu, where 106 items related to the application standards of design documents were consulted in the construction cost field, and 31 ideas were proposed in the performance improvement field, including safety enhancement, maintenance improvement, and economic efficiency improvement.
Since introducing the contract review system nationwide for the first time in February 2003, the city has established appropriate cost calculation standards such as the Seoul-type unit price development and accumulated cost review expertise centered on professionals in various fields including civil engineering, architecture, and electrical engineering.
Kim Jin-man, Director of the Seoul City Finance Bureau, stated, “The private construction cost consulting and performance improvement services can be used to determine the estimated price when selecting contractors, reduce disputes over construction costs between associations and contractors during design changes, and are expected to improve performance such as safety enhancement. We encourage many associations to participate.”
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