Hwaseong City Begins Negotiated Contract with DL E&C
Construction Cost Adjustment and Extended Timeline
Securing Project Momentum by Reducing Contractor Risk
Site Briefing Scheduled for Early May Following Contract Transition

The construction project for the Dongtan Tram (Dongtan Urban Railway), a key transportation infrastructure in Hwaseong City, Gyeonggi Province, has overcome a critical hurdle and is now rapidly moving forward toward groundbreaking within this year.

Dongtan Tram Perspective View. Provided by Hwaseong City

Dongtan Tram Perspective View. Provided by Hwaseong City

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On April 23, Hwaseong Special City announced that it would officially begin the negotiated contract procedures with the DL E&C consortium, which participated in the tender, to expedite the implementation of Phase 1 of the Dongtan Urban Railway construction project.


As a result of the re-announced bidding for Phase 1 conducted on the same day, the DL E&C consortium was the sole bidder, thereby meeting the legal requirements for a negotiated contract. This is significant because it overcame the crisis last year when construction companies withdrew from the negotiated contract due to the construction market downturn and reduced project feasibility at the end of the year. The city actively developed alternatives, thereby reaffirming its commitment to the project.


After the DL E&C consortium decided not to participate in the negotiated contract in December last year, the city held emergency meetings and project briefings for the construction industry to gather feedback, which was then reflected in revised bidding conditions.


The main revisions include: ▲ Adjusting construction costs to reflect inflation and current market prices ▲ Extending the construction period by 10 months (to a total of 53 months) ▲ Extending the design period by 2 months (to a total of 8 months). In particular, converting the cost of relocating underground obstacles handled by trusteeship into a post-cost review category reduced risks for the construction company, and this is considered a key factor that encouraged participation in this tender.


The city plans to hold an on-site briefing in early May and, once the technical proposals are prepared over approximately 120 days, to conduct a technical review. After the review of the technical proposals is complete, the city will proceed with the negotiated contract procedures, focusing its administrative capacity so that both priority construction and detailed design can commence simultaneously within the year.



Kang Sungwon, head of the Tram Construction Promotion Team, stated, "By transitioning to a negotiated contract, we expect to prevent further project delays and minimize uncertainties in the domestic and international construction markets, thereby securing project stability. Moving forward, we will continue to strengthen progress management by field and cooperation with relevant agencies to ensure that the Dongtan Urban Railway project proceeds as scheduled without any setbacks."

Dongtan Urban Railway Route Map. Provided by Hwaseong City.

Dongtan Urban Railway Route Map. Provided by Hwaseong City.

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The Dongtan Urban Railway is a next-generation transportation system that will connect a total distance of 34.2 kilometers, linking key areas such as Hwaseong Yubora to Suwon Mangpo Station, Byeongjeom Station to Dongtan Station, and the vehicle depot, all centered around Dongtan Station (SRT·GTX-A). Now that the Phase 1 section is on track, it is expected to dramatically improve transportation convenience for residents in Dongtan New Town and surrounding areas and contribute to the revitalization of the local economy.


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

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