Withdrawal of “construction cost increase implementation” by the construction company
Union “Terminate contract following 10 days of suspension”
The reconstruction project of Dunchon Jugong (Olympic Park Foreon) in Gangdong-gu, Seoul, which is called the largest reconstruction project since Dangun, was completely stopped from 00:00 on the 15th due to a conflict over the increase in construction cost. If the situation prolongs, the general sale of 4786 units scheduled for the first half of this year (January to June) is also expected to be delayed without a promise.
On the 15th, the Dunchon Jugong construction project group (Hyundai E&C, HDC Hyundai Industrial Development, Daewoo E&C, Lotte E&C) issued a statement saying, “Since the start of construction in February 2020, we have done regarding 1.7 trillion won in external construction, and the construction is separate from the cost of construction. We are procuring regarding 700 billion won in loan for the project cost of the association through the grant of credit (joint guarantee). said. On that day, all manpower, equipment, and materials were withdrawn from the construction site, and placards with the words ‘Lien exercise in progress’ were hung all over the place.
The contract to increase the construction cost in question was signed between the executive department of the former Dunchon Jugong and the construction group in June 2020. The Dunchon Jugong Association, which was launched in May last year, has argued that the contract cannot be accepted because there are legal and procedural problems. A union official said, “We will hold a general meeting on the 16th and pass a bill to invalidate the design change itself, which is the basis for the increase in construction costs.
The Dunchon Jugong Reconstruction is the largest reconstruction project ever, with 35 stories above ground, 85 buildings, and 12,032 houses. If the association cancels the construction contract with the construction group, it must settle the project cost loan (700 billion won) received through the joint guarantee of the construction group. This loan is due in July. As the general sale schedule is postponed indefinitely, members’ contributions are expected to increase as well.
Reporter Jeong Soon-gu [email protected]
