DL E&C said on the 13th it was notified by the redevelopment association for Sangdaewon District 2 in Seongnam, Gyeonggi Province, that its construction order contract had been terminated. DL E&C plans legal action, including seeking confirmation of its status as the constructor.
The redevelopment association held a general meeting on the 11th and approved an agenda item to terminate the construction contract with DL E&C. The termination amount for this contract is about 984.9 billion won (excluding value-added taxes), equal to 13.3% of DL E&C's revenue last year.
DL E&C was selected as the constructor by the Sangdaewon District 2 dwelling redevelopment maintenance project association on Oct. 17, 2015. Since then, the association carried out various permits and approvals, including changes to the project implementation plan and the management and disposal plan. DL E&C said it completed all preparations for groundbreaking, including demolition work, but the contract was terminated, and it will pursue legal action.
Sangdaewon District 2 is a maintenance project that will redevelop the area around 3910 Sangdaewon-dong into a large apartment complex with a maximum of 29 stories, 43 buildings in total, and 4,885 households. Various conflicts arose over issues such as increased construction costs and brand changes. The association is seeking to select GS Engineering & Construction as the new constructor.