“If the design goes as planned, the building will collapse”… Why does the 448m Cheongna City Tower file a lawsuit against LH?
A private business that was building Cheongna City Tower in Incheon Cheongna International City, Korea’s tallest observation tower with a height of 448 meters, filed a lawsuit (lawsuit to confirm status as contractor of Cheongna City Tower business agreement) against LH (Korea Land and Housing Corporation) on the 28th. The business operator claims that construction costs soared due to redesign as there was a risk of collapse if LH’s design was followed, and that this was because LH unilaterally terminated the business agreement after shifting responsibility for the rapid increase in construction costs to the business operator. Last May, LH terminated its business agreement with Cheongna City Tower Co., Ltd., the private operator of this project.
The Cheongna City Tower project is a project to build Korea’s tallest observation tower with 30 floors above ground and a height of 448m and surrounding complex facilities on a 33,000㎡ site in the center of Cheongna Lake Park in Seo-gu, Incheon. Originally, the operator was planning to proceed with the project by receiving construction costs from LH to build the tower, directly investing in the lower complex facilities, donating the tower to the Incheon Free Economic Zone Authority after completion, and operating and managing it for up to 50 years.
This project has suffered a series of setbacks since Cheongna City Tower Co., Ltd. was selected as the private operator in 2016. Project cost was the main reason. Initially, the project was scheduled to be carried out with a contribution of 300 billion won by Cheongna district residents, but the construction cost increased to 560 billion won due to design changes due to errors in the basic design of LH and an increase in the price of nuclear ash.
In fact , while conducting detailed design based on the basic design provided by LH in 2018, the operator requested an aeroelasticity (the property of a material to contract, expand or deform due to aerodynamic influence) testing from RWDI , a global environmental engineering company, to review structural stability. did. Here, we were informed that if construction was carried out according to the basic design presented by LH , structural stability could not be secured and there was a risk of the tower collapsing.
The business operator said, “ If LH provides the basic design again, they will renegotiate the construction cost based on the detailed design according to the new design 메이저사이트and then start construction. However, LH was concerned that design mistakes would be revealed if the project was stopped due to structural instability issues, so instead, it asked the business operator to design the design. He claimed, “When we refused, he threatened to sanction the companies that made up the consortium, mentioning the termination of the business agreement.” However, LH ‘s position is, “The basic design reflects the business operator’s proposal for public offering, and the business operator is responsible for increasing the project cost due to design errors.”
Afterwards, through the intervention of the Incheon Economic Office, it was decided to determine the construction cost after redesign, and to select a construction company first and begin construction on a first-come, first-served basis. In March 2019, POSCO E&C (currently POSCO E&C) was selected as the preferred negotiating partner, and a groundbreaking ceremony was held in November of that year. In November 2021, LHIt was agreed that the business operator would pay 22.1 billion won out of the 441 billion won that must be borne.
But the conflict continued after that. The construction cost was increased again to 568.2 billion won. LH proposed to first start construction by signing a ‘ GMP (Maximum Construction Cost Guarantee) Contract’ that sets the upper limit on construction costs and then decide who will bear the construction costs later, but the operator maintained that it is possible to proceed with the project after deciding who will share the increase in construction costs. did.
Ultimately , LH notified the business operator of the termination of the contract in May. LH said, “We repeatedly urged the operator to enter into a contract with the construction company and requested that the operator carry out an agreement on sharing excess project costs, but we decided that it was impossible to proceed with the business with the operator who failed to conclude the contract without justifiable reasons and delayed the project, so we decided to proceed with the basic project in accordance with legal procedures. “The agreement has been terminated,” he explained, adding, “We are internally preparing a lawsuit related to compensation for damages.” Afterwards, LH signed an agreement with the Incheon Economic Office in June, saying it would directly carry out the tower construction. The management and operation of the tower was decided to be handled by the Incheon Economic Office.