Site Briefing on July 21, Bid Deadline on September 4
Association Proposes Practical Bidding Guidelines
The competition to select a contractor for the reconstruction project of Songpa Hanyang 2nd Apartment, located near Songpa Station on Line 8 and valued at 700 billion KRW, is set to begin. HDC Hyundai Development Company has already expressed its intention to participate, while POSCO E&C and GS E&C are also considering joining the bid.
On July 15, the Songpa Hanyang 2nd reconstruction association announced the contractor selection notice and stated that a site briefing will be held on July 21. The deadline for bid proposals is September 4. The association has set a bid deposit of 60 billion KRW and does not allow joint participation (consortiums). The construction cost is set at 7.9 million KRW per pyeong (3.3㎡), with a total proposed construction cost of 685.6 billion KRW. If a competitive bidding process is achieved, the association plans to hold a general meeting around November to select the contractor. Songpa Hanyang 2nd was completed in 1984 and consists of 744 households. After reconstruction, it will be rebuilt as a complex with 1,346 households across 4 basement levels and 29 above-ground floors.
HDC Hyundai Development Company is collaborating with global architectural design group SMDP to propose a design plan. A representative from HDC Hyundai Development Company stated, "When our company has an existing project nearby, there can be issues meeting business requirements, but since there are no ongoing sites in the vicinity, being able to fully commit is a strong advantage."
POSCO E&C, which previously competed with HDC Hyundai Development Company in Jeonmyeon 1 District, is also considering participating in the bid. A POSCO E&C representative explained, "We are actively interested and intend to pursue the contract." POSCO E&C won the Garak Miryung reconstruction project in July last year and is also participating as a joint contractor in the Garak Ssangyong 1st remodeling project.
GS E&C, which has been expanding its presence in the Gangnam area after winning the Jamsil Woosung project, has also identified Songpa Hanyang 2nd as one of its major bidding targets for the second half of this year. A GS E&C representative said, "We are actively reviewing participation to win the contract."
The association has proposed bidding guidelines to contractors that emphasize practicality. It conducted a survey among association members regarding community facilities, deciding to exclude amenities such as swimming pools, maximize the area for community facilities, and focus on landscaping and parking lot design. While the construction cost is set lower than other major redevelopment sites in the Gangnam area, the association plans to upgrade finishing materials in line with future sales prices.
Kwon Jagun, head of the Songpa Hanyang 2nd reconstruction association, said, "There have been some delays in the process due to initiatives like the 'Shintong Planning,' so speeding up the redevelopment project is a major desire among association members." He added, "Contractors often propose alternative designs, but to expedite the approval process, we have included in the guidelines that additional features such as skybridges should be excluded and that proposals should adhere as closely as possible to the Shintong Planning guidelines."
With reconstruction complexes around Songpa Station recently moving to select contractors one after another, a major transformation of the area's skyline is expected. Songpa Hanyang 3rd and Daelim Garak are pursuing a reconstruction project led by Samsung C&T, which aims to connect the two complexes as if they were a single development. Songpa Hanyang 3rd is planned to be rebuilt with up to 33 floors and 507 households, while Daelim Garak will have up to 35 floors and 867 households. Garak Samik was awarded to Hyundai Engineering & Construction last year and is set to be rebuilt with up to 30 floors and 1,531 households.
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