A view of Heukseok New Town District 2, Dongjak-gu, Seoul.  (Maekyung DB)

‘No. 1 public redevelopment’ Heukseok District 2 construction company selection bid… Daewoo E&C “Abandoning the bid”

A view of Heukseok New Town District 2, Dongjak-gu, Seoul. (Maekyung DB)

The bid was made as Samsung C&T participated in the bidding for the construction company of Heukseok District 2, Dongjak-gu, Seoul, the site of the ‘Public Redevelopment No. 1’ project. At first, it was predicted that there would be a two-way battle between Samsung C&T and Daewoo E&C, but Daewoo E&C declared not to participate on the day of the bidding, saying, “The union was focused on one construction company from the beginning.”

According to the maintenance industry, the Heukseok 2 Redevelopment Promotion Zone Redevelopment and Redevelopment Project Residents’ Representatives’ Meeting closed the bid to select a contractor on April 19th. However, Samsung C&T was the only contractor that bid on that day. This is in contrast to the fact that a large number of first-tier construction companies such as Daewoo E&C, Hyundai E&C, GS E&C, DL E&C, and Lotte E&C participated in the site briefing session in January.

Daewoo E&C sent a statement to the union members on the same day, saying, “We have determined that the risk after bidding is unacceptable due to the biased direction of the executive branch representing only the position of a specific construction company.” It is argued that fair competition was impossible because the union created a situation that was advantageous only to a specific contractor. Regarding this, an official from the Heukseok District 2 Association said, “We have never done anything to any specific construction company in favor of any specific construction company, and we are proceeding fairly (selection of the construction company).

In the process of selecting a contractor, if the first bid is bid as a sole bid, the association proceeds with a second bid. If the union issues a bid notice in May as planned, an on-site briefing session will be held, and the outline of the order is expected to be revealed around August. As Daewoo E&C opened up the possibility of additional bidding, saying, “I expect that an environment in which fair competition is possible,” the second bidding is highly likely to be a two or three battle between first-tier construction companies.

Heukseok District 2 is a project to build 1216 apartments and shops with the 7th basement floor and the highest 49th floor on a 45,229㎡ site around 99-3 Heukseok-dong, Dongjak-gu. As the first public redevelopment project, the Seoul Housing and Urban Corporation (SH Corporation) and the cooperative will jointly implement the project.

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