Dunchon Jugong Construction will resume in November… Final agreement between union and construction company

photo">Pedestrians passing by the Dunchon Jugong Reconstruction Complex in Gangdong-gu, Seoul look around the site. Reporter Im Se-joon

[헤럴드경제=김은희 기자] The reconstruction and maintenance project of Dunchon Jugong Apartment in Gangdong-gu, Seoul will resume.

According to the Seoul Metropolitan Government on the 11th, the union and the construction project group (Hyundai E&C, HDC Hyundai Development, Daewoo E&C, and Lotte E&C) finally reached an agreement on how to resume construction on the same day. It has been four months since the construction stopped on April 15th.

Based on the arbitration proposal announced by the Seoul Metropolitan Government, the agreement partially materialized the text of the clause related to the ‘shopping mall dispute’ where there was a difference of opinion between the two sides. It was decided to follow the proposal of the construction group with the addition of canceling the resolution of the previous general meeting.

Previously, the city of Seoul had met each of the two sides more than 10 times to reconcile their differences since the first arbitration proposal was presented at the end of May. Of the 9 issues last month, the two sides discussed 8 issues, including ▷Re-verification of the increase in the existing construction cost ▷Review of the sale price ▷General sale/sale for union members ▷Design/contract change ▷Verification ▷Resolution at the general meeting ▷Resumption of construction ▷Effectiveness of the agreement and liability in case of violation agreed However, they have not been able to narrow their differences on the commercial dispute.

In order to avoid delays in consultations on shopping malls due to disputes within the union, such as the resignation of the union president, the Seoul Metropolitan Government has asked the Gangdong-gu mayor to discuss between the union executive department and the non-subordinate, the normalization committee. On the 29th of last month, the union and the normalization committee completed an agreement.

In addition, if the union executive department does not make progress in negotiations with the current shopping mall representative group (Integrated Shopping Center Committee) and REITs in Holdings, the former shopping center PM (construction project management), by the 15th, the negotiations are accelerating as they say they will cancel the approval of the Integrated Shopping Center. rode From the standpoint of an apartment union member who owns 96% of the stake in the project, the cancellation of approval and restoration of the canceled PM contract will be put on the agenda of the general meeting.

In the end, in the final agreement, the union acknowledged the part of the construction project related to the shopping mall performed before April 15, 2022, and canceled all general assembly related to the shopping mall that was decided after April 2021 within 60 days from the date of this agreement agreement. and agreements between PM companies (REITs in Holdings) (including the exercise of liens for commercial shopping malls) by PM companies, etc.”

The union plans to hold a general meeting in October to appoint a new executive and resume construction. Then, it is planning to apply for approval for general sale in November and hold a general meeting for management disposition in December. If all goes according to plan, the general sale is expected to be possible in January next year.

The Seoul Metropolitan Government plans to have the Gangdong-gu Office proceed with the sale and licensing procedures as soon as possible. An official from the Seoul Metropolitan Government said, “We expect that construction will resume in early November if various approvals and permits and sales schedules are carried out smoothly as agreed upon.

Dunchon Jugong is a reconstruction project to build up to 35 stories, 85 buildings, and 12,032 households, and the construction was completely stopped as of 00:00 on April 15 as the union executive and the construction team had a conflict over the issue of increasing the construction cost.

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