Seongsu District 4 Contractor Selection Disrupted Again... Association and Daewoo E&C Clash Over Proposal [Real Estate AtoZ]

Daewoo Refuses to Sign Comparison Table, Citing "Guideline Violation by Competitor"

Association Responds: "Concerns Addressed... Valid Even Without Signature"

During the process of selecting the contractor for the redevelopment of Seongsu Strategic Maintenance District 4 in Seoul, a new conflict has arisen between the residents' association and Daewoo Engineering & Construction over the preparation of a bid proposal comparison table. Daewoo Engineering & Construction refused to sign the documents, claiming that a competitor had violated the guidelines, while the association stated that it would proceed with the subsequent steps according to the rules.

Expected bird's-eye view of Seongsu Strategic Maintenance District 4. Seoul City

According to the maintenance industry on May 28, a meeting was held the previous day at the association's office to prepare the bid proposal comparison table. The meeting was attended by the association, Daewoo Engineering & Construction and Lotte Engineering & Construction as bidding participants, and officials from Seongdong District Office, the local government authority. At the meeting, Daewoo Engineering & Construction pointed out that a proposal from its competitor, Lotte Engineering & Construction, violated the bidding guidelines. Specifically, Daewoo Engineering & Construction claimed that a bridge connecting to Hangang Park, depicted only in computer graphics within Lotte Engineering & Construction’s design, exceeded the boundaries of the maintenance district. Furthermore, Daewoo Engineering & Construction argued that Lotte Engineering & Construction’s proposed 100% loan-to-value ratio and minimum relocation allowance of 2 billion won also exceeded the collateral value of association members, thus violating the guidelines. As a result, Daewoo Engineering & Construction refused to sign the documents and left the meeting.

The association countered that the claims made by Daewoo Engineering & Construction were not true. In materials distributed to the media, the association stated, "Upon checking the drawings, it was found that the bridge mentioned by Daewoo Engineering & Construction does not exist in the design and is a false claim. This was confirmed in the presence of the public support officer from the district office." The association also explained, "Even if a bidder does not sign within the deadline, the comparison table is still valid with the remaining signatures, according to the relevant clause. Therefore, the comparison table signed by Lotte Engineering & Construction and the association has been processed as valid." On the other hand, Daewoo Engineering & Construction maintains that the public support officer was present only to verify the procedures and did not endorse the validity of the documents.

Even if Daewoo Engineering & Construction refuses to sign, the bidding process will not be suspended. The redevelopment of Seongsu District 4 is a large-scale project to build a residential complex with 1,439 units, ranging from six basement floors to 64 above-ground floors, in the Seongsu-dong 2-ga area. The total construction cost amounts to 1.3628 trillion won.

This content was produced with the assistance of AI translation services.