The move-in schedule for the 'Cheolsan Jayi The Heritage' apartment in Cheolsan-dong, Gwangmyeong, has been set, but the association and GS Engineering and Construction are still struggling to resolve their conflict over construction cost increases.
According to the maintenance industry on the 7th, the reconstruction association of Cheolsan Jugong Complexes 8 and 9 announced on the 6th that it would conduct a pre-inspection for residents of Cheolsan Jayi The Heritage from April 19 to 21.
The designated move-in period has been set from May 30 to August 12, which is 75 days to accommodate the convenience of the association members due to the large scale of the complex, according to the association.
Although the move-in schedule has been set, the reconstruction association of Cheolsan Jugong Complexes 8 and 9 and the construction company, GS Engineering and Construction, have yet to narrow their differences regarding the construction cost increases.
Cheolsan Jayi The Heritage is a project to rebuild the Cheolsan Jugong Complexes 8 and 9 located at 235 Cheolsan-dong, Gwangmyeong, into a new apartment complex consisting of 3 underground floors to 40 above-ground floors and a total of 3,804 units across 23 buildings.
Earlier, GS Engineering and Construction sent a document to the association in January demanding an additional construction cost of 103.2 billion won. They also stated that if negotiations over the contract amount adjustment are not completed by the time of move-in, it would be inevitable to restrict the residents' move-in.
In December 2019, GS Engineering and Construction signed a construction cost contract worth 877.6 billion won with the association and began construction in December 2021. In February 2022, three years later, they requested an increase of 41.6 billion won from the initial construction cost, adjusting the contract amount to 919.2 billion won. In December 2023, they conducted a second contract modification increasing the amount by 58.5 billion won to 977.7 billion won compared to the first adjustment.
Subsequently, GS Engineering and Construction requested a third adjustment from the association on January 22, increasing the second adjustment amount by 103.2 billion won to 1 trillion 89.4 billion won.
However, the association argued that even considering the design changes requested for specialized items in the general sale in 2023, an increase of around 10 billion won is appropriate.
A maintenance industry official noted, "With the move-in date confirmed, association members must pay the remaining balance and additional contributions to receive their keys for move-in," and added, "As the move-in date approaches, the pressure felt by the association will inevitably increase."
He continued, "If negotiations regarding the increase in construction costs are not completed by the time of move-in, the association may have to pay penalties for delay to the general buyers for any delay in move-in, and the transfer of ownership of the association members may also become difficult due to unaccounted additional contributions."
A representative from GS Engineering and Construction said, "Since the end of January, we have been holding regular meetings with the association regarding the construction cost disputes and are doing our best to reach amicable agreements to prevent any issues with the move-in."