On the 23rd, Daewoo E&C announced that it would disclose extraordinary business conditions to secure the Gaepowoseong 7th reconstruction project.

The complex name proposed by Daewoo E&C is "Summit Prinity," which combines PRIDE and INFINITY. Daewoo E&C explained that "Summit Prinity" embodies the determination to achieve eternal pride through the infinite value of the new summit.

Daewoo E&C proposes Summit Pranity to Gaepo Woosung 7th./Courtesy of Daewoo E&C

First, Daewoo E&C submitted a responsibility assurance letter for prompt project progress. Recently, there have been delays or stoppages in construction at many maintenance project sites due to issues such as construction cost negotiations. To alleviate the concerns of consortium members, Daewoo E&C also submitted the responsibility assurance letter on the bidding deadline of the 19th, expressing its intent to ensure 100% responsible construction without interruption.

Daewoo E&C has decided to fully finance the total project cost for stable business promotion. Additionally, to reduce the burden on individual consortium members, it proposed unprecedented financing rates. The rate presented by Daewoo E&C is CD (certificate of deposit) rate + 0.00%, which is the lowest rate not seen in maintenance projects so far.

In addition, during mandatory business financing (PF) projects guaranteed by the Korea Housing & Urban Guarantee Corporation (HUG), a guarantee fee arises, which Daewoo E&C has agreed to bear instead of the consortium.

The payment terms for contributions are also extraordinary. To alleviate the interest burden on consortium members, it proposed a 100% payment condition upon move-in instead of financing for demand. There is also a benefit that allows the payment timing for contributions to be delayed for up to 6 years in two-year increments.

Daewoo E&C also presented exceptional conditions regarding cost increases due to inflation until actual construction begins. It decided to defer 18 months of inflation increases. Considering the average annual inflation rate of the consumer price index over the past four years, Daewoo E&C reported that this could save about 36.4 billion won in the construction cost assigned to Gaepowoseong 7th.

The method of paying construction costs proposed was 'payment from sales revenue within the allowable limit of the consortium member,' which is the most favorable condition for consortium members. This means that if sales revenue is generated from the consortium, rebates to the consortium members would be prioritized, followed by expenditures for necessary project costs, and finally, the construction company would collect the construction cost.

Daewoo E&C also proposed the condition of "accepting the contract documents presented by the consortium 100% and signing the contract immediately upon the selection of the construction company." This expresses Daewoo E&C's sincerity to prevent attitude changes or tricks before and after the selection of the construction company, with the strategy of gaining the trust of consortium members based on honesty and reliability.

A representative from Daewoo E&C stated, "The unprecedented business conditions proposed for Gaepowoseong 7th align with President Kim Bohyun's intent to put all efforts into winning the hearts of consortium members rather than pursuing profits," adding, "We will exert all our efforts in the remaining time to ensure that our genuine commitment, which has been prepared for a long time for the Gaepowoseong 7th reconstruction project, is conveyed."