Who Will Win the Bid Proposal for the Open Hannam 3 District?

Hyundai Engineering & Construction, Daelim Industrial, and GS Engineering & Construction Three-Way Competition
Bid Proposals Unveiled on the 18th... Emphasis on Compliance Bidding Alongside Alternative Design and Cost Reduction
One Month Left Until Contractor Selection on June 20

Hannam New Town District 3, Yongsan-gu, Seoul

[Asia Economy Reporter Onyu Lim] The competition among construction companies to secure the construction rights for Hannam New Town Zone 3 in Yongsan-gu, Seoul, a project worth 7 trillion won, has intensified. Hyundai Engineering & Construction, Daelim Industrial, and GS Engineering & Construction are engaged in a three-way battle, with each company's bid proposals containing design plans and construction costs being opened on the 18th.

According to the maintenance industry on the 19th, the redevelopment association of Hannam Zone 3 opened the bid proposals from Hyundai Engineering & Construction, Daelim Industrial, and GS Engineering & Construction the day before. By lottery, Hyundai Engineering & Construction was assigned number 1, Daelim Industrial number 2, and GS Engineering & Construction number 3. The association plans to select the construction company at a general meeting on the 20th of next month after two joint briefing sessions.

The extraordinary conditions such as guaranteed sale prices and rental systems were omitted. This is because last year, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government raised concerns about the overheated competition among the three companies and requested a prosecution investigation, emphasizing compliance in bidding. Accordingly, the companies are differentiating themselves by proposing alternative designs that modify the original design within 10%, instead of the innovative designs deemed illegal by the Seoul Metropolitan Government.

Cost reduction was also emphasized. All three companies proposed original construction costs lower than the 1.888 trillion won construction cost suggested by the association. Daelim Industrial offered the lowest at 1.3 trillion won, followed by Hyundai Engineering & Construction at 1.5 trillion won, and GS Engineering & Construction at 1.6 trillion won. However, the actual construction cost reflecting the alternative designs was higher for Daelim Industrial at 1.8 trillion won compared to Hyundai Engineering & Construction's 1.7 trillion won. GS Engineering & Construction did not separately reflect alternative designs and maintained the original construction cost.

The association plans to compare the bid proposals submitted by the three companies and disclose them to the association members next week. Hannam Zone 3 is a large-scale project to build a total of 5,816 households in 197 apartment buildings ranging from six basement floors to 22 above-ground floors. Located on a hillside, it offers differentiated views of the Han River, leading to expectations that it will become a landmark complex in Seoul upon completion. A maintenance industry official said, "Hannam New Town Zone 3 is not only large enough to be called the largest redevelopment since the founding of Korea, but also has high value as a landmark on the northern Han River side, so the selection result of the construction company will greatly influence the order of maintenance project contracts."

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