SH Corporation Directly Participates in Construction Cost Verification... "Preventing Disputes Between Associations and Developers"

Seoul Housing and Communities Corporation (SH Corporation) announced on the 18th that it will promote a "Construction Cost Verification Pilot Project" to prevent disputes between contractors and associations due to increased construction costs.

Based on its experience in housing construction and maintenance projects, SH Corporation plans to directly participate in construction cost verification. First, one site each for reconstruction and redevelopment projects will be selected for the pilot project. The reconstruction site is "Sinbanpo 22nd Apartment" in Jamwon-dong, Seocho-gu, and the redevelopment site is "Haengdang 7th District" in Haengdang-dong, Seongdong-gu. After establishing a construction cost verification system through the pilot project, SH Corporation plans to fully implement construction cost verification for maintenance project sites throughout Seoul starting in the second half of this year.

SH Corporation announced in March last year that it would participate in construction cost verification to resolve conflicts as disputes between associations and contractors increased due to contractors' requests for construction cost increases. In October of the same year, it established a dedicated department, the Construction Cost Verification Division, and has been implementing related detailed plans. SH Corporation has experience in directly reviewing construction costs to prevent conflicts between residents and contractors in projects such as the Hillstate Gwanak New Fore Reconstruction and Dapsimni 17th District Redevelopment, in which it participated as a public implementer.

Kim Heon-dong, President of SH Corporation, stated, "As a public institution with expertise in housing construction and maintenance projects, the corporation will contribute to the fair and transparent promotion of maintenance projects by newly promoting the construction cost verification project." He added, "We will mediate and resolve conflicts between associations and contractors and induce the prompt promotion of maintenance projects to contribute to the expansion of housing supply in Seoul."

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