Expectations for a Mediating Role Bridging the Conflict Between the Union and the Construction Company
Busan Metropolitan Corporation (BMC) will commence construction cost verification work for reconstruction and redevelopment projects (maintenance projects) experiencing conflicts due to increased construction costs in the region.
In September last year, BMC established a dedicated department for construction cost verification, the ‘Construction Cost Verification TF,’ and established administrative procedures and detailed plans to carry out construction cost verification for maintenance projects. After forming the related advisory committee, the full-scale work began in January this year.
Construction cost verification is conducted for associations that have prepared subsidiary documents in accordance with the ‘Standards for Construction Cost Verification in Maintenance Projects’ announced by the Ministry of Land, Infrastructure and Transport. The application conditions are ▲when 20% or more of landowners or association members request verification ▲when construction costs increase by 5-10% or more after selecting the contractor ▲when construction costs increase by an additional 3% or more after completing construction cost verification.
If verification is desired, applicants must complete and prepare the application form and subsidiary documents according to the Ministry of Land, Infrastructure and Transport’s announcement and apply via email to the BMC Construction Cost Verification TF. In this case, a verification fee of a certain amount announced by the Ministry of Land, Infrastructure and Transport will be charged, and it will be calculated and imposed separately as overall construction cost verification and increased construction cost verification according to relevant standards.
Documents received by email undergo a review process including application and verification of the appropriateness of subsidiary documents before final acceptance, followed by procedures such as ▲practitioner verification ▲interim briefing ▲external expert advisory committee.
Shin Chang-ho, President of Busan Metropolitan Corporation, said, “We will activate the construction cost verification system to enhance transparency in maintenance projects in the Busan area and promote prompt maintenance project progress through conflict mediation.”
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