After Chuseok, Mok-dong's Reconstruction Bidding War Heats Up Again... Daewoo Engineering & Construction Expected to Win Complex 8 Unopposed

[Financial News] The process of selecting construction contractors for Mok-dong reconstruction projects is picking up steam again after the Chuseok holiday, with construction companies stepping up their activities. Of the 14 Mok-dong complexes, five have entered the final stages of selecting contractors, drawing attention to whether the remaining complexes will proceed with competitive bidding.
Hyundai Engineering and Construction, POSCO E&C, IPARK Hyundai Development Company, and Jeil Construction attended a pre-bid briefing held on the morning of the 30th by the reconstruction association for Mok-dong New Town Apartments Complex 4 in Seoul's Yangcheon-gu.
The Complex 4 project will reconstruct the existing 1,382 households into a development with up to 49 floors and 2,436 households. A floor area ratio of 299.94% will be applied, and the estimated construction cost is KRW 1.6389 trillion.
The construction cost is approximately KRW 10.1 million per 3.3 square meters, making it the first Mok-dong reconstruction project to exceed KRW 10 million per 3.3 square meters and drawing considerable attention. Given that the construction costs for Mok-dong reconstruction projects that previously selected contractors ranged from KRW 9.5 million to KRW 9.9 million per 3.3 square meters, this is the highest figure so far.
A competitive bid between Hyundai Engineering and Construction and POSCO E&C is expected for Complex 4. Hyundai Engineering and Construction is reportedly making sustained efforts to secure the construction contract after closely managing the project since its early stages. Some observers have also raised the possibility that Hyundai Engineering and Construction could submit the only bid.
The bidding deadline is 2 p.m. on November 16. The bid bond totals KRW 60 billion, consisting of KRW 30 billion in cash and KRW 30 billion in a surety insurance certificate. Consortium bids are not permitted.
That afternoon, the reconstruction association for Mok-dong New Town Apartments Complex 8 held a pre-bid briefing. Daewoo Engineering & Construction was the sole participant.
Complex 8 previously failed to attract a successful bid on August 22, when Daewoo Engineering & Construction was the only company to submit a bid. With no other participants at this pre-bid briefing, Daewoo Engineering & Construction is expected to win the contract unopposed through a negotiated contract.
The Complex 8 project will reconstruct the existing 1,352 households into a development with up to 49 floors and 1,881 households. The estimated construction cost is KRW 1.1119 trillion, or approximately KRW 9.65 million per 3.3 square meters. Daewoo Engineering & Construction proposed SUMMIT DIABO MOKDONG, featuring its high-end residential brand SUMMIT.
Following this pre-bid briefing, five of Mok-dong's 14 complexes are proceeding toward either a sole-bid process or a negotiated contract. Complex 6, the first to select a contractor, signed a negotiated contract with DL E&C. Complex 10 selected Hyundai Engineering and Construction, while Complex 13 selected Samsung C&T as its preferred bidder. Complex 12 is also proceeding with a sole bid from GS Engineering & Construction, making a negotiated contract likely.
Although major builders continue to selectively pursue projects, attention is focused on whether competitive bidding will take place at Complexes 7 and 14. Samsung C&T, Hyundai Engineering and Construction, and LOTTE Engineering & Construction are reportedly interested in Complex 7, where the most intense competition is expected. Reconstruction will increase the complex from 2,550 to 4,341 households, the largest net increase among the projects.
Potential bidders for Complex 14 include Daewoo Engineering & Construction, DL E&C, POSCO E&C, and LOTTE Engineering & Construction. The project is considered highly viable because it will become a mega-complex with more than 5,000 households after reconstruction.
Promotional centers are also being actively established as part of the bidding competition. Hyundai Engineering and Construction's THE H MOKDONG LOUNGE, DL E&C's ACRO MOKDONG REGENCY, and Daewoo Engineering & Construction's SUMMIT MOKDONG LOUNGE have each been set up near Mok-dong. LOTTE Engineering & Construction will open its LE-EL LOUNGE on October 1, while POSCO E&C and IPARK Hyundai Development Company are also preparing promotional centers.
[email protected] Choi A-young Reporter