Preventing Union Conflicts and Project Delays... Seoul City Enacts 'Standard Articles of Association for Maintenance Project Unions'

The Seoul Metropolitan Government has established the 'Standard Articles of Association for Maintenance Project Associations,' which include procedures for appointing and reappointing association executives, the duration of their duties, and the contractor selection and contract procedures to prevent construction cost conflicts.

On the 12th, cooling fog is being operated to help workers cool down from the heat at the Cheonho 4 Promotion Zone Urban Environment Improvement Project site in Gangdong-gu, Seoul. Photo by Jinhyung Kang aymsdream@

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Seoul announced on the 7th that it will promulgate the 'Seoul Metropolitan Government Public Support Maintenance Project Association Standard Articles of Association' to prevent conflicts during maintenance projects and to support transparent and stable project operations.

The majority of associations currently operate their articles of association by utilizing the Ministry of Land, Infrastructure and Transport’s standard articles or through maintenance project management specialists and legal advisors. Since the revision of the Urban and Residential Environment Maintenance Act in 2019 allowed metropolitan and provincial governors to distribute standard articles of association, Seoul has prepared its own standard articles to prevent project delays caused by internal disputes and construction cost conflicts within associations.

The standard articles include provisions on △ regulations related to the appointment and reappointment of association executives △ contractor selection and contract procedures to prevent construction cost conflicts △ electronic voting at general meetings and delegate meetings △ information disclosure to guarantee members’ right to know.

The standard articles clarify the procedures for appointing and reappointing association executives and the duration of their duties, especially specifying regulations on acting executives when the position of association head is vacant. The procedures for appointing or reappointing new executives must be completed before the expiration of the current executives’ terms, and if not completed, the existing executives will continue to perform their duties.

Since the absence of the association head can cause significant disruption to association operations, the acting executive system is to be defined according to the association’s circumstances and stipulated in the articles of association.

To prevent conflicts over construction costs, contractor selection and contracts must comply with the Seoul Metropolitan Government’s public support maintenance project contractor selection standards, and the Seoul maintenance project standard construction contract should be applied as a principle, actively utilizing the standard contract.

The articles also include provisions requiring construction cost verification after project implementation approval and before the announcement of member sales, with the results disclosed to members. Design changes that could increase construction costs after general sales are discouraged, and if cost increases occur, verification procedures must begin one year before the scheduled move-in date to prevent delays in occupancy.

Regarding association dissolution, the association head must convene a dissolution general meeting within one year of the previous notice. If the head does not convene the meeting, members representing at least one-fifth can request to convene it. At the dissolution general meeting, a professional association manager can be appointed as the representative liquidator.

For efficient association operations, the articles allow decision-making methods to be established electronically. Depending on the association’s circumstances, electronic voting can be applied during general or delegate meetings and reflected in the articles of association. To protect members’ rights, maintenance project-related materials must be accessible for members to review, and detailed procedures for information disclosure requests are also included in the standard articles.

Seoul plans to conduct maintenance project academies, online education, and promotions to ensure active use of the 'Public Support Maintenance Project Association Standard Articles of Association' in the field. The draft of the standard articles can be found on the Seoul Maintenance Project Information Mongttang website.

Han Byung-yong, Director of the Housing Office at Seoul City, said, "The Public Support Maintenance Project Association Standard Articles of Association aim to enhance transparency and fairness in association operations and to prevent various conflicts that may arise during maintenance projects. We will continue to support establishing a maintenance project culture that members and residents can trust."

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