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The phenomenon of "the poor and the poor" is becoming clear in the selection of construction companies at reconstruction sites in Seoul. This is because large construction companies have strengthened their "selection orders" stance that they will only win orders for reconstruction in key areas of Seoul.

Large reconstruction sites in Hannam, Yongsan-gu, and Jamsil, Songpa-gu, are in fierce competition, while only one construction company participates in the bidding, and there are many workplaces that do not have construction companies at all.

According to the urban maintenance industry on the 24th, the Daelim Garak Apartment Reconstruction Association in Songpa-gu, Seoul, selected Samsung C&T as the constructor at a general meeting held on the 22nd.

The reconstruction site, which costs about 454.4 billion won in construction costs, was converted into a private contract with the participation of Samsung C&T alone. According to the relevant law, no competitive bid has been established more than once, so if a bid is made, a private contract can be made.

Other maintenance sites in the Gangnam area are no different. Garak 1st Hyundai Apartment in Songpa-gu recently issued a second bidding announcement for the selection of a construction company. During the first bid, only Lotte Engineering & Construction submitted a proposal and was auctioned off.

In Songpa-gu, the selection of reconstruction contractors for Jamsil Woosung 4th (DLEC), Garak Samik Manshaun (Hyundai Engineering & Construction), and Samhwan Garak (GS Engineering & Construction) was carried out as a private contract based on an exclusive bid last year alone.

After two bids, Shinbanpo 2nd round in Seocho-gu selected Hyundai Engineering & Construction as the contractor late last year. Shin Banpo 4th, which has a total construction cost of 1.31 trillion won, is likely to be a private contract following the sole participation of Samsung C&T.

Sanho Apartment, located along the Han River in Yongsan-gu, also selected Lotte Engineering & Construction as the construction company at the end of last year after four bids.

An official from a large construction company said, "Companies that have failed to win urban maintenance orders will lose all the money they have spent," adding, "When the market atmosphere is not good as it is now, construction companies do not compete with each other if they think 'I can't do it' after thoroughly reviewing the business feasibility and determining the benefits and losses."

An increasing number of maintenance workplaces are attracting bids because there are no construction companies participating in the bidding. When the 5th Samho Garden in Seocho-gu was attracted last year because no one participated in the bidding for the selection of the construction company, it raised construction costs and started to find the construction company again.

In the case of the redevelopment project in Sindang District 10 in Jung-gu, the first site of the Seoul Metropolitan Government's Shintong Planning, it is difficult to select a construction company. It is reported that construction companies, which have increased their cost burden due to soaring construction costs, are reluctant to participate as they judge that they have no business feasibility.

The phenomenon of "the rich and the poor" by reconstruction sites is expected to continue. This is because large construction companies are further strengthening their "selected orders" stance.

DL E&C has set a policy to only win orders for maintenance projects in Seoul's core areas and metropolitan cities. It aims to secure the construction right of Hannam District 5 with a total construction cost of 1.7 trillion won this year.

In Apgujeong District 2, which is expected to be selected by the end of this year, a "Return Match" between Hyundai Engineering & Construction and Samsung C&T will be held following the order of Hannam District 4.

Next month, Samsung C&T and GS Engineering & Construction are expected to face off over the right to construct the 1st, 2nd, and 3rd reconstruction projects of Jamsil Woosung. The reconstruction project costs 1.6 trillion won.