The construction company bidding for the redevelopment of the Bangbae 7 district in Seocho District, Seoul, has switched to a negotiated contract after failing twice.
According to the maintenance industry on the 9th, SK Eco Plant submitted its intent to participate in the bidding alone during a recent submission of letters of intent by the association, leading to the cancellation of competitive bidding. Consequently, the Bangbae 7 District Housing Redevelopment Maintenance Project Association announced a negotiated contract on the 6th and is scheduled to close bids on the 20th.
The Bangbae 7 district is a project to build 316 dwellings consisting of underground four floors and above ground 19 floors on a site of 17,549 square meters located at 891-3 Bangbae-dong, with construction costs amounting to 177.2 billion won. Although the scale is small, it received good evaluations in terms of project viability due to the high amount of general sales.
The Bangbae 7 district redevelopment association previously issued bidding announcements for contractor selection in April and June of last year, but the bids were canceled due to a lack of participation from construction companies.
Afterwards, the association released a public notice in October of last year and held a site briefing on the 21st of the same month. Nine companies attended, including Woongjin Construction, Hoban Construction, BS Hanyang, Kumho Construction, SK Eco Plant, Samsung C&T, POSCO E&C, Dongyang Construction Industries, and Daewoo Engineering & Construction. Among them, only SK Eco Plant and Samsung C&T submitted letters of intent to participate within the deadline set by the association, and the bidding was automatically canceled as Samsung C&T was the only participant.
Subsequently, the association issued a re-bidding announcement in December of last year and held a second site briefing on the 24th of the same month. Three companies, SK Eco Plant, Samsung C&T, and BS Hanyang, attended the second site briefing. Among them, only SK Eco Plant submitted its letter of intent to participate within the deadline set by the association, and the bidding was canceled when Samsung C&T did not bid. The association then announced a bidding invitation for contractor selection for a negotiated contract, leading to the switch to a negotiated contract. Only construction companies that attended at least once at the first or second site briefings are eligible to participate. Consortiums are not allowed.
SK Eco Plant, which bid alone in the fourth round, is currently reviewing its participation in the negotiated contract. A representative from SK Eco Plant noted, "Any company that has participated in the site briefing at least once is eligible to participate, so we are continuously reviewing participation."
Samsung C&T previously showed interest by attending all the site briefings conducted by the Bangbae 7 district association. Notably, Samsung C&T did not participate in the site briefing for the Bangbae 15 district, which it was known to also be interested in, focusing instead on the Bangbae 7 district. However, it ultimately did not participate in the fourth round of bidding. A representative from Samsung C&T only stated, "We are reviewing participation in the negotiated contract."