3 Companies, 3 Colors 'All-Out Bidding Battle'... Who Will Win the Construction Rights for Sinbanpo 15th Complex?

[Asia Economy Reporter Kim Yuri] The construction company for the reconstruction project of Sinbanpo 15th Apartment in Banpo-dong, Seocho-gu, Seoul, which has attracted attention with two major construction companies and a mid-sized construction company participating in the bidding, will be decided on the 23rd. Samsung C&T, Daelim Industrial, and Hoban Construction, who entered the bidding war, have been engaged in an all-out battle by leveraging their affiliate capabilities, proposing a groundbreaking payment method for construction costs, and accepting negative margins, respectively.

According to the maintenance industry on the 23rd, the Sinbanpo 15th Reconstruction Association will hold the second joint briefing session and the general meeting for selecting the construction company on the rooftop of the 6th floor of Eluce Convention near the project site. Although there were some issues in scheduling the general meeting due to the COVID-19 pandemic, the association judged that further postponement was impossible due to increased financial costs caused by project delays, and thus proceeded with an outdoor general meeting.

The Sinbanpo 15th Reconstruction project involves constructing six buildings with 641 households, ranging from four basement floors to 35 above-ground floors, in the 12th area of Banpo-dong, Seocho-gu. The association had previously selected Daewoo E&C as the construction company but terminated the contract in December last year after conflicts over increased construction costs due to design changes. Although the project scale is not large, it is located in the heart of Banpo and is expected to influence major maintenance project bids scheduled for the first half of the year, such as Hannam 3 District, drawing industry attention to the selection results.

Samsung C&T, returning to the reconstruction bidding war after five years, plans to mobilize the capabilities of its affiliates for this complex. They declared that they would include products related to Samsung Electronics, Samsung SDS, Samsung C&T Resort Division, S-1, and Samsung Welstory. Daelim Industrial proposed a progress payment method where construction costs are paid according to the progress rate. This is the opposite concept of the pre-sale payment method, where construction costs are paid at a fixed rate, reducing the financial burden on the association. Hoban Construction showed its determination to secure the contract even at the cost of negative margins, proposing 39 billion KRW worth of non-product items and an annual 0.5% project loan interest rate. They also proposed maintaining the same construction costs and project conditions regardless of the pre-sale timing.

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