LH bundles 13 public housing blocks into tenders...cuts construction costs by 12.9 billion won

[Financial News] Construction work on 13 public housing blocks comprising 4,744 homes, with similar construction start dates, will be bundled into six contracts and put out to tender all at once. Korea Land and Housing Corporation (LH) expects this to reduce construction costs by about 12.9 billion won.
According to LH on the 22nd, LH held a meeting on housing supply with the Korea Construction Association that day at the Construction Center in Seoul’s Gangnam District. The meeting provided an opportunity for the public and private sectors to discuss ways to accelerate housing supply together.
LH unveiled its consolidated tendering plan at the meeting. Consolidated tendering combines construction projects in neighboring districts with similar start dates into a single contract. As the client, LH can reduce repetitive bidding procedures and administrative burdens. Contractors can share materials, equipment and skilled workers among nearby sites, which is an advantage.
According to LH, the consolidated tendering of these 13 blocks will save about 12.9 billion won. LH forecast that implementing consolidated tendering this year would save about 261.2 billion won.
This year’s consolidated tendering projects also include metropolitan-area complexes such as Bucheon Daejang A11 and Incheon Gyeyang A22. Large-scale sites such as Daegu Yeonho A1, with 1,394 homes, are included as well. Small regional sites involving 40 to 130 homes were also bundled together, including village improvement projects in Yeongcheon, North Gyeongsang Province; Jangsu, North Jeolla Province; and Jeongseon County, Gangwon Province.
“This is a time when closer and stronger cooperation with the construction industry is needed so that people can experience the effects of housing policy more quickly and clearly,” LH President Lee Seong-hun said. “We will combine the Korea Construction Association’s and the construction industry’s on-site experience and technical capabilities with LH’s project implementation capabilities to accelerate housing supply.”
“To significantly improve the speed and efficiency of housing supply, the public and private sectors must work more closely together than ever,” Korea Construction Association Chairman Han Seung-gu said. “The construction industry will also actively cooperate to help improve people’s living environments and housing stability through rigorous quality management and safe construction.”
[email protected] Jung Kyung-soo Reporter