Samho Garden 5th Phase Raises Construction Costs and Bid Deposit to Reattempt Contractor Selection

Samho Garden 5th Apartment near the Express Bus Terminal in Seocho-gu, Seoul, has put up construction costs approaching 10 million KRW per 3.3㎡ (pyeong) and started selecting a contractor. Since it is a small complex with fewer than 200 households and the construction cost was low, the contractor selection was canceled last year, leading to a significant increase in construction costs.

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At the site briefing held by the Samho Garden 5th Reconstruction Association on the 17th, nine construction companies attended, including Samsung C&T Construction Division, Daewoo E&C, POSCO E&C, HDC Hyundai Development Company, Kumho Construction, Hyosung Construction, KCC Construction, Hanwha Construction Division, and Hanyang. After the briefing, bidding qualifications will be granted to contractors who submit a letter of intent to participate in the bid within seven days. The association will select the contractor through a general competitive bidding method but decided not to allow joint contracts (consortiums) where multiple construction companies work together.

The construction cost set by the association is 9.9 million KRW per 3.3㎡, with a total construction cost of 236.9 billion KRW. This is an 11% increase from the previous announcement. Last year, the construction cost was set at 9.8 million KRW per 3.3㎡, with a total construction cost of 212.98 billion KRW.

Jo Byung-je, head of the Samho Garden 5th Association, said, "Other reconstruction projects have construction costs around 9.3 to 9.5 million KRW per pyeong, but since the complex is small and uses high-end finishing materials, we set the construction cost close to 10 million KRW. We aim to quickly select a contractor and proceed with the project implementation plan approval."

At the site briefing held in July last year, seven construction companies participated, and POSCO E&C and SK Ecoplant submitted letters of intent to participate in the bid, but neither participated in the final bidding, resulting in one failed contractor selection. POSCO E&C participated for the second consecutive time following the previous briefing. A POSCO E&C official explained, "We did not participate in the last bid because the project conditions did not match, but this time we are positively considering it."

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The association set a condition that bidders must pay a bid deposit of 30 billion KRW in cash to qualify for participation. Chairman Jo explained, "Large complexes attract interest from multiple contractors and competitive bidding occurs, but the situation is different for small complexes. This time, to avoid failure, we set a high bid deposit to ensure that only construction companies genuinely interested in bidding participate."

Samho Garden 5th is located in Banpo-dong 30-1 area, built in 1986, and consists of 168 households. The project involves constructing three buildings with 3 basement floors and 35 above-ground floors, totaling 305 households and auxiliary welfare facilities. It boasts an excellent location, being in the immediate vicinity of Sapyeong Station on Line 9 and close to Express Bus Terminal Station on Lines 3, 7, and 9.

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