Agreement on Construction Cost Increase of Approximately 21 Billion KRW
Construction Period Extended Until the 25th of Next Month
Agenda for Construction Cost Increase to Be Submitted at Next Month's General Meeting
The infrastructure construction of 'Olympic Park Foreon,' which had been halted a month before move-in, will resume. This is the result of an agreement between the reconstruction association and the construction companies, who had been in conflict over construction costs, to increase the construction budget.
According to the Dunchon Jugong Reconstruction Association and Gangdong-gu on the 24th, the association agreed with the construction companies responsible for the infrastructure to resume construction. On the morning of the same day, the infrastructure construction companies?Jungang Construction (road expansion and paving), Dongnam Gongyeong (construction of the donated facility Gangdong Central Library), and Jangwon Landscaping (apartment landscaping)?met with the association's executive committee and, after negotiations, agreed to resume construction from the 25th and drafted an agreement.
The association decided to pay the construction costs requested by the construction companies without any reduction. The construction companies requested approximately 21 billion KRW. The association plans to submit the agenda for the construction cost increase at the extraordinary general meeting scheduled for the 25th of next month. During the agreement process with the construction companies, the association agreed to pay 50% of the additional construction costs within 10 days after the general meeting and the remaining 50% within one month.
The construction period, which was until the end of this month, was also extended to the 25th of next month. For cultural welfare facilities, the construction period is extended until February 20 of next year.
An association official explained, "We did not consider it highly unreasonable to pay the construction amount requested by the construction companies as originally proposed, and we agreed on the amount initially presented to the delegates' council. We also reflected the construction companies' request to extend the construction period."
Earlier, the infrastructure construction companies requested the association to increase the construction cost by about 21 billion KRW, citing construction period extension and price increases. At the delegates' council meeting held on the 17th, excluding escalation due to price fluctuations, a revised agenda of about 17 billion KRW was submitted but was rejected by a margin of 2 to 3 votes. Subsequently, the construction companies put up banners and halted construction from the 19th.
A Gangdong-gu official said, "The construction companies removed the construction halt banners and some construction work started today. Full-scale construction is expected to begin tomorrow," adding, "We will do our best to support so that the move-in proceeds as scheduled."
Although the construction resumption was reached dramatically, the challenge remains to complete the construction quickly before the scheduled move-in date. The association expects the construction to be completed before the move-in date scheduled for the 27th of next month. Gangdong-gu is conducting internal consultations regarding the completion approval.
A Gangdong-gu official stated, "The association has submitted the application, and we are continuing consultations on the completion approval. Since it requires a comprehensive review, we will know more once the construction reaches the final stages."
Olympic Park Foreon is a complex rebuilt from the Dunchon Jugong Apartments, with a total of 12,032 households. Apart from the infrastructure, the apartment complex construction has been completed, and a preliminary inspection for residents was conducted from the 12th to the 14th of this month. In 2022, construction was halted for six months due to conflicts over construction costs with the apartment construction consortium (Hyundai Engineering & Construction, Daewoo Engineering & Construction, HDC Hyundai Development Company, and Lotte Construction).
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