Selection of Construction Company for Gwacheon Jugong 10 Complex Intensifies... Samsung C&T and Lotte Construction Compete for Contract

Bid Deadline on October 31 After On-Site Briefing on October 5

As the last puzzle piece of the reconstruction in Gwacheon-si, Gyeonggi Province, Jugong 10 Complex is set to enter the construction company selection process next month, the bidding competition between Samsung C&T and Lotte Engineering & Construction is expected to heat up.

Perspective view of Jugong Complex 10 reconstruction in Gwacheon-si, Gyeonggi Province / Image courtesy of Gwacheon-si

According to the maintenance industry on the 28th, the Gwacheon Jugong 10 Complex Reconstruction Association announced on the 26th through the 'Construction Company Selection Bidding Notice' that after the site briefing on October 5, the bidding will close on the 31st. The bid deposit is 20 billion KRW, of which 5 billion KRW must be paid in cash and the remaining 15 billion KRW submitted as a performance bond.

The construction cost is 7,405,710 KRW per 3.3㎡ (excluding VAT), which is about 400,000 KRW higher than the previously calculated 6,997,000 KRW per 3.3㎡ by the estimating company.

The bidding competition is expected to be a two-way battle between Samsung C&T and Lotte Engineering & Construction. Initially, the competition was expected between Samsung C&T and DL E&C, but DL E&C withdrew in June after about 10 months of effort, citing worsening business conditions such as rising construction costs. Subsequently, as the possibility of Samsung C&T's sole bid increased, Lotte Engineering & Construction showed interest, changing the dynamics.

Samsung C&T has a track record of reconstructing three complexes in Gwacheon: Jugong 3 Complex (Raemian Sure), Jugong 11 Complex (Raemian Eco Palace), and Jugong 7-2 Complex (Raemian Central Suite). On the other hand, Lotte Engineering & Construction has no prior contract records in Gwacheon.

Meanwhile, Lotte Engineering & Construction has announced a 'detailed bidding' method that specifies construction costs in detail. Samsung C&T is known to prefer the usual 'lump-sum bidding' method. Considering Samsung C&T's influence in Gwacheon and the preference for the 'Raemian' brand, industry insiders say Lotte Engineering & Construction will likely focus on the price aspect.

Meanwhile, Gwacheon Jugong 10 Complex was built in June 1984 and is now entering its 40th year since completion. It consists of 632 households with exclusive areas ranging from 84 to 125㎡ and has a low floor area ratio of 86%, making it highly viable for redevelopment. Through reconstruction, it is planned to be transformed into a complex with 1,339 households, ranging from two basement floors to 28 above-ground floors.

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