The selection of a contractor for the Yeouido Mokhwa Apartment reconstruction project in Seoul's Yeongdeungpo District did not succeed in its initial phase. The bidding was deemed invalid as only Samsung C&T participated, failing to meet the requirement for competitive bidding.
According to the construction industry on July 9, the Mokhwa Apartment reconstruction association closed the bidding for contractor selection on this day, but only Samsung C&T submitted a proposal. Under relevant regulations, a bidding process requires participation from at least two construction companies to be valid, leading to the automatic invalidation of this bid.
The reconstruction project aims to transform the existing 312-unit Mokhwa Apartment into a mixed-use complex with a maximum of 49 floors and a total of 416 units. The estimated construction cost is set at approximately 13.7 million won per 3.3 square meters.
In a prior site briefing held in May, seven construction companies, including Samsung C&T, Daewoo Engineering & Construction, GS Engineering & Construction, Lotte Engineering & Construction, and IPARK Hyundai Industrial Development, attended. However, during the actual bidding, most withdrew, leaving only Samsung C&T. This trend is interpreted as a result of rising raw material prices, increased construction costs, and a slowdown in the real estate market, prompting construction firms to adopt a selective bidding strategy focused on projects with higher profitability. Additionally, the limited size of the project site, the requirement for high-rise design, and the location's proximity to the Han River and Yeouinaru Station have contributed to higher-than-average construction costs compared to typical small-scale reconstruction projects.
The association plans to issue a re-announcement to proceed with the bidding process again. If only one company participates in the re-bid, the contractor may be selected through a negotiated contract process following the relevant procedures.
Meanwhile, industry experts suggest that the outcome of the upcoming re-bid could serve as a benchmark for the competitive atmosphere among contractors for major reconstruction projects in Yeouido.
* This article has been translated by AI.
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