The redevelopment association for Seongsu Strategic Maintenance Zone District 4 (Seongsu District 4) in Seongdong-gu, Seoul, said on the 24th that Daewoo Engineering & Construction unilaterally scrapped the "joint agreement for normalizing the Seongsu District 4 constructor selection process."
In a press release that day, the association said promotional staff reported to work at Daewoo Engineering & Construction's office within Seongsu District 4, adding, "We judge this to be a unilateral breach of the agreement by Daewoo Engineering & Construction." It also noted that it was publicly announcing that Article 5 of the agreement had taken effect. Article 5 states that in the event of a breach, the association can strip bidding eligibility and confiscate the bid bond (50 billion won) without any objection.
Earlier, on the 19th, the association, Daewoo Engineering & Construction, and Lotte Engineering & Construction signed an agreement based on five items, including the complete withdrawal of all promotional personnel. The clause the association flagged is Article 1 of the agreement, whose key provision is "the complete withdrawal of all promotional personnel."
In response, Daewoo Engineering & Construction said, "Ordinary reporting to the office is not a violation of the agreement. There has not been a single promotional activity since the agreement was signed," adding, "We ask that the baseless slander and unilateral blame-shifting without fact-checking be stopped."
The association and Daewoo Engineering & Construction also clashed during the bid on the 9th. In the bid that closed on the 9th to select the constructor for the Seongsu District 4 redevelopment, Daewoo Engineering & Construction and Lotte Engineering & Construction participated, but on the 10th, the next day, the association announced a re-bid, saying Daewoo Engineering & Construction had failed to submit the supporting documents essential for accurate construction cost calculations and verification of the construction scope.
Subsequently, on the 19th, Daewoo Engineering & Construction submitted a letter of apology to the association over various controversies that had arisen during the bidding process, and with the association, Daewoo Engineering & Construction, and Lotte Engineering & Construction signing an agreement, the conflict appeared to have been settled for the time being. However, as the association and Daewoo Engineering & Construction clashed again over the withdrawal of promotional personnel, the conflict appears to be reigniting.