Extension from 84 to 108 Months: Two-Year Increase
Joint Task Force Activated in Case of Noncompliance with Design Supplementation
On April 28, the Ministry of Land, Infrastructure and Transport requested Hyundai Engineering & Construction Consortium (hereafter Hyundai E&C) to submit a statement of reasons for extending the construction period regarding the basic design for the site development of Gadukdo New Airport. This action was taken because Hyundai E&C proposed a construction period of 108 months (9 years), which is 24 months longer than the 84 months (7 years) specified in the bid announcement.
That afternoon, the Ministry stated, "We have received the basic design documents from Hyundai E&C, the counterparty to the negotiated contract for the Gadukdo New Airport site development project. However, the construction period specified in the basic design submitted by the company does not comply with the bid announcement. In accordance with relevant laws and regulations, we have requested Hyundai E&C to supplement the basic design and to provide specific reasons and explanatory materials for proposing a different construction period."
Perspective view of Busan Gadukdo New Airport Passenger Terminal. Provided by the Ministry of Land, Infrastructure and Transport.
To prepare for the possibility that Hyundai E&C may not supplement the design, the Ministry immediately activated a joint task force with related agencies and public corporations on the same day, and established expert advisory meetings by field to begin reviewing alternative bidding methods. The Ministry also plans to request a review from the Central Construction Technology Review Committee.
The Ministry stated, "We will continue to push forward with the construction of Gadukdo New Airport, a key project for balanced national development, and will actively strive to build the airport both safely and swiftly."
Previously, after four failed competitive bids for the Gadukdo New Airport site construction last year, the Ministry switched to a negotiated contract and selected the Hyundai E&C Consortium as the contractor. The Hyundai E&C Consortium consists of Hyundai Engineering & Construction, Daewoo Engineering & Construction, and POSCO E&C.
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