Hyundai Engineering & Construction said on the 20th that it was selected as the preferred negotiation partner for the reconstruction project of Apgujeong District 3 (Hyundai Complexes 1–7, 10, 13, 14, and Daelim Villat) in Apgujeong-dong, Gangnam-gu, Seoul.
The Apgujeong District 3 reconstruction is a redevelopment project to transform 3,934 aging apartments in the area of 393-1 Apgujeong-dong, Gangnam-gu, Seoul, into a total of 5,175 homes. Among the Apgujeong reconstruction districts, it has the largest area. The construction cost proposed by the association is 5.561 trillion won (excluding value-added taxes).
The first and second bids to select a contractor for the Apgujeong District 3 reconstruction, which closed on the 10th and on this day, respectively, were voided because only Hyundai Engineering & Construction bid. Under the Urban and Residential Environment Improvement Act, selecting a contractor is in principle conducted through competitive bidding, and if a single bid results in two or more failed tenders, it may be switched to a private contract.
Hyundai Engineering & Construction said, "This selection as the preferred negotiation partner constitutes a switch to a private contract procedure due to two or more failed tenders under Article 24 of the Enforcement Decree of the Act on the Improvement of Urban Areas and Residential Environments," adding, "Being designated as the preferred negotiation partner does not mean contractor status has been secured, and procedures to select a contractor are expected to proceed at a future general meeting of association members."