DL E&C Maximizes Association Member Benefits by Adding 'Speed' to Apgujeong District 5

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DL E&C has unveiled a plan to enhance the practical benefits for association members by shortening the project duration in the bidding war for Apgujeong District 5, a key redevelopment area in Gangnam, Seoul. As 'speed' in redevelopment projects is directly linked to the financial costs borne by association members, DL E&C proposed a substantial responsibility structure that goes beyond simple schedule management. This includes submitting a completion guarantee letter and promising the commencement of the first relocation.

Specifically, DL E&C has confirmed the total construction period for Apgujeong District 5 to be 57 months. This figure is about 4 months shorter than other districts within Apgujeong, which have suggested a duration of 61 months. If the monthly financial cost per association member is estimated at 10 million won, simply shortening the construction period could save approximately 40 million won per household.

Such a proposal was made possible by DL E&C’s unique technological capabilities and thorough pre-planning. DL E&C presented an integrated business plan that includes the operation of a dedicated team for Apgujeong District 5, responsibility and cost coverage for permits and approvals, the first relocation commencement in Apgujeong, and a guaranteed completion. Rather than merely expressing an intention to shorten the construction period, DL E&C has established a preemptive schedule management system covering the entire course of the project.

The most critical aspect is the timing of the 'guaranteed completion.' While completion guarantees are often discussed after the contract is signed, DL E&C has submitted this guarantee as early as the bidding stage. Unlike other redevelopment projects that have experienced months-long construction halts and subsequent delays-resulting in increased burdens for association members-DL E&C aimed to demonstrate a strong commitment to driving the project to completion without any risk of suspension.

The guarantee of the first relocation in Apgujeong follows the same principle. DL E&C promises the earliest relocation within the Apgujeong district and has even stipulated that, should this not be achieved, construction costs will be reduced and specialized construction will be provided as designated by the association. This approach goes beyond mere promises, establishing a structure where the contractor bears responsibility for any schedule delays.

Legal support and responsibility for permits and approvals are also directly tied to project speed. DL E&C pledged to take responsibility for alternative design approvals and related costs, provide legal support for various complaints and disputes, and respond in conjunction with large law firms. Since actual delays in redevelopment projects more frequently occur during the permit, dispute, and complaint processes than on construction sites, this aspect is also considered a key mechanism for shortening the construction period.

This confidence stems from DL E&C's accumulated experience and technological capabilities in project execution. Not only does DL E&C possess innovative construction methods and advanced technologies, but it has also conducted thorough preliminary geological surveys and established a verification system using BIM, enabling it to propose an optimal construction period with minimized delay risk. In fact, DL E&C previously completed the Acro River Park and Acro Riverview projects in Seocho District within about 3 to 4 years, shortening the duration by 2 to 3 years compared to nearby sites.

For association members, the significance of a shorter project period is clear. Faster relocation leads to lower financial costs, and the earlier the groundbreaking and move-in, the sooner asset values are realized. Ultimately, project speed is not just about symbolic competition for first place; it directly determines the tangible benefits received by association members.

A DL E&C official stated, "Redevelopment projects are ultimately a race against time, and the burden of delays falls entirely on association members. This proposal is not merely about presenting a shorter construction period; it is a comprehensive solution linking the operation of a dedicated team, responsibility for permits, guaranteed completion, and the guarantee of the first relocation. This will translate into reduced financial costs and maximized asset value for association members."

At a time when high interest rates and rising construction costs are increasing uncertainty in redevelopment projects, a contractor’s proactive assumption of delay risks is expected to play a decisive role in alleviating the anxiety of association members and realizing the real value of their assets.

Specific product proposals for 'Acro Apgujeong,' which embodies Apgujeong's future vision, are also scheduled to be released sequentially.

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