Construction Cost Disputes: Seoul to Help, Launch Support Center

[Financial News] The Seoul Metropolitan Government is launching the Construction Cost 120 Center to prevent construction cost disputes in urban renewal projects and support their swift resolution.
According to the Seoul Metropolitan Government on the 21st, the Construction Cost 120 Center is a one-stop support desk offering consultations on all construction cost matters, from contractor selection and construction contracts to cost increases and verification, dispute mediation and arbitration, and follow-up management. It will connect support services currently dispersed among the Seoul Metropolitan Government, district governments, the Seoul Housing and Urban Development Corporation (SH), and other entities, providing assistance from the early stages of a dispute through the period after an agreement is reached.
The new center is being established as part of an initiative to resolve construction cost disputes in urban renewal projects, proposed by the Housing Stability and Urban Division under the ninth popularly elected administration’s G3 Seoul Plan.
The Construction Cost 120 Center will be located on the seventh floor of the Seoul Metropolitan Government’s Seosomun Second Government Building. It will be open from 1 p.m. to 5 p.m. on weekdays. People involved in urban renewal projects, including redevelopment and reconstruction associations, preparatory committees, association members, and landowners and other rights holders, can receive free consultations.
The center has 33 consultation specialists, including 15 lawyers, seven urban renewal experts, and 11 urban administration experts. Two specialists in relevant fields and one public official will work on a rotating basis each day.
For project sites needing further assistance after a consultation, the center will connect them with specialist organizations so they can receive tailored support, such as pre-construction contract consulting and construction cost verification. It will dispatch a “Construction Cost Doctor,” a team of experts in various construction cost-related fields, to project sites where disputes have arisen. The Construction Cost Doctor will identify issues between the association and the contractor and seek solutions by operating a consultative body.
The city will pilot the Construction Cost 120 Center through December this year. It plans to refine the consultation staff and operating procedures before launching full operations in January next year. Myung No-jun, head of the Seoul Metropolitan Government’s Housing Office, said, “We will provide the earliest consultation on construction cost disputes and support those involved through to the end, putting in place a seamless support system from contractor selection to dispute resolution.”

[email protected] Kwon Jun-ho Reporter