First Visit to Maintenance Project Site Since Appointment to Encourage Employees
Expresses Concern Over Doosan Construction's Low-Bid Strategy
Competition Expected to Intensify Ahead of the General Meeting on the 16th
The bidding battle for the 'Seongnam-si Eunhaeng Jugong Reconstruction Project,' considered the biggest reconstruction project in Gyeonggi-do this year, is showing signs of intensifying following a site visit by Jeong Hee-min, CEO of POSCO E&C. This marks the first time since his appointment in December last year that CEO Jeong has personally visited a maintenance project site.
According to POSCO E&C on the 5th, CEO Jeong visited the POSCO E&C promotional center set up near Eunhaeng Jugong in Sujeong-gu, Seongnam-si, on the 4th. POSCO E&C is currently holding four briefing sessions daily for union members at this location.
While encouraging employees who are putting their full effort into the bidding, CEO Jeong reportedly expressed concerns that "Doosan Construction might have submitted a price that is too low." CEO Jeong is regarded as a seasoned expert in construction projects.
His remarks appear to be in response to Doosan Construction's proposal of a construction cost of 6.35 million KRW per 3.3㎡. Doosan Construction is pursuing the contract with an unprecedentedly low bid in the metropolitan area. They are focusing their efforts on this project with the determination to create a regional landmark. POSCO E&C proposed a construction cost of 6.98 million KRW per 3.3㎡. Both companies are competitively presenting project conditions such as specialized designs and are engaged in a heated promotional battle. The competition has become so intense that mutual slander has even occurred.
The Eunhaeng Jugong Reconstruction Project is a development project to build a total of 3,198 apartment units ranging from six basement floors to 30 above-ground floors in the Eunhaeng-dong area of Jungwon-gu, Seongnam-si. Two companies, POSCO E&C and Doosan Construction, participated in the bidding. The union plans to select one of the two construction companies through a general meeting on the 16th. Industry insiders say that with less than two weeks remaining until the contractor selection, the fact that POSCO E&C’s new CEO made an unprecedented visit to the maintenance project site can be seen as an effort to appeal sincerity to the union members by showing that "all efforts are being poured in."
Until last year, POSCO E&C had set new company records for the highest annual contract amounts in urban maintenance projects for five consecutive years. As of 2024, their contract amount was 4.7191 trillion KRW, ranking second in the industry after Hyundai Construction (6.0612 trillion KRW). This year, they opened the bidding season by winning the remodeling contract for Sangnok Tower Apartments in Gwangjin-gu, Seoul, in January. Securing the construction rights for the Seongnam Eunhaeng Jugong reconstruction would signal a green light for entering the '5 trillion KRW club.' The total construction cost for this project is expected to slightly exceed 1 trillion KRW.
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