Songpa Hanyang 2nd Contractor Selection Faces Controversy Over "Individual Contact With Association Members"... Association to Review Eligibility

GS E&C Submits Sole Bid, Tender Fails
HDC Hyundai Development Company Requests Action on GS E&C's Individual Promotion
Reannouncement Schedule Undecided; Decision to Go Through Delegates' Meeting
Association: "Will Resolve Suspicions Throug

The bidding for the construction company for the Songpa Hanyang 2nd Reconstruction Project was declared invalid as GS Engineering & Construction was the sole bidder. Although a competitive bid had been anticipated, HDC Hyundai Development Company did not participate. As suspicions arose regarding individual contact with association members by both companies, the association decided to conduct an eligibility review and other procedures.

According to the maintenance industry on September 4, GS Engineering & Construction was the only participant in the bid for the Songpa Hanyang 2nd reconstruction project, resulting in the bid being declared invalid. Under the Urban and Residential Environment Maintenance Act, if only one company submits a bid in a competitive tender, the bid is considered invalid.

On September 3, HDC Hyundai Development Company sent an official letter raising concerns about GS Engineering & Construction's individual contact with association members. The following day, GS Engineering & Construction also raised issues regarding HDC Hyundai Development Company's violations related to individual contact.

Although HDC Hyundai Development Company had previously expressed its intention to participate in the Songpa Hanyang 2nd bid, it decided not to participate due to suspicions of GS Engineering & Construction's individual contact with association members. HDC Hyundai Development Company requested the association to review GS Engineering & Construction's eligibility to bid. In the official letter sent by HDC Hyundai Development Company to the association on September 3, it was pointed out that "GS Engineering & Construction violated regulations by conducting illegal tours at the Xi Gallery, providing suspected entertainment with premium Korean beef to certain association members, engaging in individual contact, and operating illegal large LED promotional trucks within the complex."

A representative from HDC Hyundai Development Company stated, "We determined that if the association did not take action regarding the competitor's violations, it would be tantamount to condoning unfair practices. We will participate in the competition and contribute to maximizing the interests of association members as soon as the association establishes a fair and clean competitive environment."

On the same day, GS Engineering & Construction also submitted an official letter to the association reporting HDC Hyundai Development Company's violations. GS Engineering & Construction pointed out that HDC Hyundai Development Company had violated the rules on individual contact by organizing tours of the Yongsan Maintenance Depot promotional center and providing gifts to association members, as well as setting up rest areas for association members within the complex. GS Engineering & Construction also raised concerns about large advertisements at bus stops. On September 1, three days before the bid deadline, GS Engineering & Construction prepaid a bid deposit of 60 billion won and participated in the bidding.

The association plans to review the materials with Songpa District Office and, after board and delegate meetings, decide whether to re-announce the bidding for the selection of the construction company. Kwon Jwagun, head of the Songpa Hanyang 2nd Association, stated, "We determined that both parties' requests were reasonable, and we confirmed that there was no entertainment involved in GS Engineering & Construction's individual contact. We plan to proceed with the process after a resolution by the delegate meeting. It is still undecided whether we will re-announce the bid or nullify the previous announcement and start over. Although the schedule may be delayed, we hope to resolve the suspicions as we prefer a competitive bid."

On the 4th, Songpa District Office sent an official letter to the Songpa Hanyang 2nd Association requesting them to comply with the regulations prohibiting individual promotions related to the selection of the construction company and to proceed with the bidding accordingly.

On this day, Songpa District Office sent an official letter to the association requesting them to comply with relevant regulations, including Article 10 (Restrictions on Bid Participation Qualifications, Invalid Bids, etc.) and Article 15 (Promotion by Construction Companies, etc.) of the Seoul City Public Support Maintenance Project Contractor Selection Standards, when proceeding with the bidding. Article 10 stipulates that, following a resolution by the delegate meeting, the association may restrict bid participation qualifications for those whose bid or selection was invalidated due to the provision of money, entertainment, or other financial benefits. Article 15 prohibits individual promotions and clearly states that gifts, money, or other financial benefits must not be provided for promotional purposes.

Songpa Hanyang 2nd is a complex completed in 1984 with 744 units. After reconstruction, it will be rebuilt as a complex with 1,346 units, ranging from four basement floors to 29 above-ground floors. The construction cost proposed by the association is 7.9 million won per pyeong (3.3 square meters), with a total construction cost of 685.6 billion won.

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