Controversy Over Bid Documents for Busan Chokjin 2-1 District... Samsung C&T "No Issues in the Process"

The selection of the construction company for the redevelopment project in Busanjin-gu, Busan, called 'Promotion Zone 2-1 around Citizen Park Redevelopment Promotion District' (hereinafter Promotion Zone 2-1), with a construction cost exceeding 1 trillion KRW, has become controversial due to issues with the submission of bidding documents. Samsung C&T, which entered the bidding competition, did not upload some of the bidding documents to the Public Procurement Service's electronic procurement system (Nuri Market), which triggered the issue.

However, Samsung C&T stated that after consulting with a law firm, it was concluded that "there is no problem with the bidding process," and expressed their determination to do their best to make the project a landmark in Busan.

Busanjin-gu, Busan 'Citizens Park Surrounding Redevelopment Promotion District Promotion 2-1 Zone' Redevelopment Bird's-eye View / Image Provided by the Association

According to the maintenance industry on the 27th, Samsung C&T recently attached only the bidding proposal file to Nuri Market for the construction company selection bid for the Promotion Zone 2-1 redevelopment project, which recently closed. It is reported that all other documents were submitted directly to the association office.

The documents required for participation in the bid include about 20 items such as the bidding proposal, estimate, and performance guarantee. Typically, the application form and estimate are attached to Nuri Market, and the remaining documents are submitted directly. However, this project differed in that regard. Previously, the association announced that all related documents should be uploaded to Nuri Market and submitted in sealed form to the association office. During this process, Samsung C&T reportedly did not attach most of the documents to Nuri Market. Another bidding participant, POSCO E&C, also did not submit two documents, but these were confirmed not to be mandatory submission documents.

For Samsung C&T, which is conducting a competitive bid for the first time in about three years since the Banpo 3rd District reconstruction project in Seocho-gu, Seoul in 2020, this issue is understandably sensitive. A Samsung C&T official explained, "It is only a difference in submission method; no documents were omitted," and added, "After consulting with a top 10 domestic law firm, we received the answer that 'there is no problem with the bidding process.'"

Quoting the law firm, they further explained, "When reviewing the Urban Maintenance Act and the relevant clauses of the Promotion Zone 2-1 bidding participation guide, the documents that must be simultaneously received through Nuri Market are the narrowly defined 'bid documents,' which include the bidding proposal and the bidding participation estimate containing the bid price," and added, "Other documents should be interpreted as fulfilling the bidding participation obligation by submitting the originals directly to the association."

The Promotion Zone 2-1 redevelopment project is a development on 136,727㎡ in Beomjeon-dong, Busanjin-gu, Busan, consisting of 1,902 apartment units from five basement floors to 69 above-ground floors, 99 officetel units, and retail facilities. The construction company selection bidding was held twice in October and November but failed, and on the 15th of this month, Samsung C&T and POSCO E&C participated in the bidding competition.

POSCO E&C submitted a bid price of 1,327.4463 billion KRW, and Samsung C&T submitted 1,355.97 billion KRW, giving POSCO E&C a relative advantage in price competitiveness, but the outcome remains uncertain. Regarding this, Samsung C&T said, "The difference in additional contributions from association members is expected to be small," and added, "The competition will be decided by how differentiated the proposals are in terms of specialized design and financial conditions."

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