On the 14th, a banner for the lien exercise was hung on the screen outside the reconstruction site of Dunchon Jugong Apartment in Gangdong-gu, Seoul. Reporter Ryu In-ha
The Dunchon Jugong Reconstruction Association held a general meeting and approved the cancellation of the 550 billion won increase in construction cost. The conflict between the construction group and the union over the issue of increase is expected to intensify.
According to the construction industry on the 17th, the union held a regular general meeting held on the 16th and proposed an agenda to cancel the ‘construction contract change (construction cost increase)’ decided at the extraordinary general meeting on December 7, 2019. This agenda was passed with 4,558 votes in favor (94.5% in favor) out of 4,822 union members (including in writing) who attended the general meeting.
The union, where the former president had been in office, signed a contract with the construction team in June 2020 to increase the construction cost by 558.6 billion won from 2.670.8 trillion won to 3.229.4 trillion won following an extraordinary general meeting in 2019. This is because it reflects the added cost of design changes and complex upgrades.
However, the union, in which the new president took office, continued to argue that the increase in construction cost was invalid, saying, “The process of increasing the construction cost at that time was opaque and the reason was unclear.” Accordingly, the construction team urged the implementation of the contract and had a conflict, and eventually stopped the construction from 6 pm on the 14th, and closed the site by exercising a lien on the 15th. At present, Dunchon Jugong has completed regarding half of the construction with a completion rate of 52%.
When the construction team insisted on stopping the construction and exercising the right to lien, the union canceled the plan to increase the amount through a general meeting and set a counter-argument. On the 21st of last month, the union filed a lawsuit to nullify the project to increase the construction cost with the court, and the construction group announced that it would cancel the contract if it lasts for more than 10 days. Dunchon Jugong Reconstruction (‘Olympic Park Foreon)’ is a project to reconstruct the existing 5930 households and create the highest 35 stories, 85 buildings, and 12,032 households. After completion, it will be the largest single complex in Korea.
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