Daewoo Construction, Accepts 100% of Gaepo Woosung 7th Contract... "It's Sincere"

[Financial News] Daewoo Construction announced on the 25th that it would accept 100% of the Gaepo Woosung 7th reconstruction project association's contract without any modifications. Based on this, they plan to quickly promote the project.
According to the industry, when selecting a construction company for a maintenance project, the association usually creates a contract based on the Seoul City Maintenance Project Standard Contract and distributes it to construction companies wishing to bid. It is common for construction companies to modify clauses that are unacceptable to them to their advantage.
However, Daewoo Construction, which participated in the Gaepo Woosung 7th bid, unusually decided to accept 100% of the association's contract. In other words, they proposed a groundbreaking suggestion to eliminate the prolonged period due to contract negotiations between the association and the construction company after the selection of the construction company.
In fact, there are not a few cases where the project is delayed due to disagreements in the process of signing the construction contract immediately after the selection of the construction company. Daewoo Construction has a plan to fundamentally block project delays caused by contract signing delays.
In addition, Daewoo Construction went a step further from accepting 100% of the association's proposed contract by offering better conditions than the criteria presented by the association for the construction cost adjustment clause due to price fluctuations.
The association has set a standard for proposing the average value of the construction cost index and the consumer price index fluctuation rate for construction cost adjustments due to price fluctuations until the actual start of construction. Daewoo Construction has opened the way to reduce the members' share by modifying the contract wording to apply a lower value instead of the average value.
In addition, the so-called 'progress payment within sales revenue' method was applied to the construction cost repayment order clause. This is a method of first repaying the association's interest costs and project costs within the sales revenue, and then paying the construction cost as the last priority within the remaining amount limit.
A company official said, "It is rare to bid by accepting 100% of the association's contract in a maintenance project," and added, "Since Gaepo Woosung 7th is the first monumental complex of the renewed 'Summit' in 11 years, we will take responsibility for implementing all the contents of the proposed contract and proposal."


ljb@fnnews.com Lee Jong-bae Reporter