Seoul Housing and Urban Development Corporation (SH) said on the 17th that it conducted cost verification for a total of seven maintenance business sites after 2024 and cut 172 billion won from the requested verification amount of 998.9 billion won.
Since ramping up construction cost verification in 2024, SH has reviewed a total of seven maintenance projects, including two pilot projects and five full projects. As a result, it reduced 172 billion won, about 17.8% of the total requested amount, with the reduction rate reaching up to 38% at some business sites.
SH has also begun verifying construction costs for two sites this year. The targets are a large-scale site that includes multifamily housing and ancillary welfare facilities, and a mixed-use facility that combines retail space and officetels. During the verification, SH plans to review related documents such as the lump-sum contract, design drawings, and trade-by-trade itemized statements to confirm the appropriateness of the cost calculations.
Starting this year, SH is introducing a step-by-step, in-person communication system into the cost verification process. The measure is intended to narrow differences between cooperatives and contractors and support smooth consultations. At the kickoff stage, it will hold on-site meetings to identify issues related to cost increases and share verification standards. During the verification stage, it will coordinate disagreements through interim briefings, and at completion it will deliver the verification report and explain detailed calculation grounds to improve the parties' understanding.
From projects starting this year, SH will also provide detailed verification materials more broadly. In addition to the results report, it will provide cooperatives with trade-by-trade verification statements, management cards, and a summary of verification opinions. The aim is to help cooperatives use them as an objective basis when negotiating with contractors and prevent unnecessary disputes.
To support cooperatives that struggle to prepare for cost verification, SH also operates a "visiting construction cost verification advisory" service. Staff visit sites to explain the need for verification and how to prepare so the process proceeds smoothly. The service can be used by downloading the application form from the notices on the SH website and "Seoul Urban Regeneration Project Information Portal" and submitting it by email.