Daewoo E&C has submitted a “Completion Guarantee Commitment” as part of its bid for the reconstruction project of Gaepo Usung Phase 7. This commitment reflects Daewoo’s determination to meet the completion deadline without interruption except in cases of natural disasters, amid ongoing conflicts over increased construction costs and extended project deadlines at redevelopment sites.
According to Daewoo E&C on the 19th, the completion guarantee commitment is a pledge by the construction company to unconditionally complete the project by the set deadline. Daewoo submitted this commitment on the bidding deadline last June. This means that, excluding reasons such as natural disasters or war, construction cannot be halted, and the completion deadline must be met, even if costs rise.
If Daewoo fails to fulfill this commitment, it will not only be responsible for any penalties or damages as stipulated in the contract but also cover any financial costs that the association or financial institutions may incur.
Having this completion guarantee commitment significantly reduces the likelihood of the construction company extending the construction period or stopping work due to reasons like cost increases. Conversely, it imposes an obligation on the contractor to complete the construction within the designated timeframe without any unjustified delays. In reality, projects with such commitments have not unilaterally extended construction periods or failed to complete within the set deadlines, even in the presence of disputes.
A representative from Daewoo E&C stated, “To fulfill the desire for swift project progress by the Gaepo Usung Phase 7 association members and alleviate concerns over increased financial burdens due to rising construction costs, we have submitted the completion guarantee commitment. Although it was an optional submission during bidding, we opted to submit it to express Daewoo E&C’s commitment to the Gaepo Usung Phase 7 reconstruction project.”
The Gaepo Usung Phase 7 reconstruction association will hold a general meeting on the 23rd to select a contractor. Both Daewoo E&C and Samsung C&T are participating in the bidding to become the contractor.