LH to Order 10,000 Houses This Year Using 'Construction Management at Risk (CM)' Method

Construction Management (CM) at Risk Method (Photo by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Moon Jiwon] Korea Land and Housing Corporation (LH) announced on the 6th that it will order construction projects worth 10,000 housing units and 230 billion KRW in general buildings this year using the Construction Management at Risk (CMAR) method.

The CMAR method differs from the traditional approach of selecting a contractor after design completion. Instead, the contractor is selected during the design phase to incorporate construction expertise into the design process and perform the construction within a pre-agreed cost ceiling with the client.

Through collaboration among the client, construction company, and design firm, the overall quality of the project can be enhanced, and it enables shortening the project duration, reducing construction costs, and securing quality in various fields.

Since a pilot project in 2017, LH has ordered construction of a total of 25,000 multi-family housing units across 26 blocks using the CMAR method up to last year.

In response to the construction industry downturn caused by the COVID-19 pandemic, LH plans to order 6,000 of the total 10,000 housing units in the first half of the year.

The S-3 and S-7 blocks in Gwacheon Knowledge Information Town were ordered at the end of last year, and the project management service contract was signed on the 27th of last month. For the public sale housing construction project at 6-3M2 block in the Administrative City, the announcement was made last month, and pre-qualification (PQ) documents for bidders will be accepted until the 11th of this month.

Additional orders will be placed in the first half of the year for Pyeongtaek Godeok A54 block, Incheon Geomdan AA19 block, and Yangsan Sasong A4 block. Next month, a district with 4,000 housing units will be additionally selected and ordered in the second half of the year using the CMAR method.

Kwon Hyukrye, Head of LH Public Housing Headquarters, stated, "Through continuous system improvements, we will establish a Korean-style CMAR project model and supply high-quality buildings."

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