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Solution finally found to boost remodeling projects

2011-09-23

CM to be introduced for the remodeling project of the Bundang apartment complex.
Ssangyong E&C to be an industry leader for performing CM for remodeling for 6.612 housing units


While remodeling projects for the first phase new towns have been stalled due to controversy over vertical extension, one remodeling project is attracting attention as it introduces the concept of CM for the first time.

Ssangyong E&C (Chairman and CEO S. Joon Kim) announced that it signed a CM contract for remodeling nine apartment buildings accommodating 582 housing units sized from 78.22㎡ to 156.43㎡. It is the Dong Sung Apartment complex (built in March 1993) located in Bundang-dong, Bundang-gu, Seongnam-si, Gyoeonggi-do.

The reason why it attracts so much attention is that the CM application could be a great alternative to existing solutions, which have used a series of trial and error to discover and deal with challenges, and this was due to their lack of expertise.

So far, most remodeling projects have been led by small-sized maintenance companies, who have had insufficient experience and expertise. As a matter of fact, no single complex out of the 254 complexes that accommodate 300,000 housing units in the first phase new towns were successfully remodeled because of the above mentioned reasons.

According to the contract, Ssangyong E&C will be a project manager and main builder (with a 60% shareholding). Specifically, it will plan each remodeling project, draw out a basic design, set up plans for structural safety and construction technology, support the bidding process (member builder with 40% shares), support administrative works, gain approval and permission, inform residents and collect agreements from them, and carry out civil engineering, construction, electricity, facilities, and landscaping works.

For the residents’ side, this project can satisfy both quality and price, since optimal design and structure safety will be provided by the CM company, which will save on construction costs. For the builder’s side, it will enable them to participate in construction, even though they may not have enough experience. Also, they can spare their efforts and financial resources that they would have spent for the biding process and direct their spending into gaining more price and technological competitiveness.

Gil Hwan Kim, Chairman of the Dong Sung Apt Residents’ Committee for the remodeling project, said, “Using CM, residents and construction company work together on everything from designing, legal issues to administrative work, means we can easily respond to institutional changes such as the possible permission for vertical extension.” He added, “We chose this concept because we can have specialized support from the beginning.”




Jong Gu Kim, Managing Direct of Ssang Yong E&C said, “ In 2008, the Suwon Dong Shin apartment complex, with its 3,870 units and Mok Dong apartment complex with 2,160 units, signed a remodeling CM agreement with Ssangyong E&C.” He added, “we are considering technological cooperation to enhance safety by acquiring certification from authorities.”

Ssangyong E&C successfully completed three remodeling projects in Bangbae-dong, Dangsan-dong and Dogok-dong. Currently, it is working on another remodeling project for Ho Su apartment in Mapo.


■ What is CM (Construction Management)? It is a specialized management technique. In this concept, a client is commissioning all or parts of construction management work including planning, feasibility-studying, analysis, designing, procurement, contract, construction control, audit, assessment and maintenance to a CM company with expertise and experience in order to save construction cost, improve quality and shorten the construction period.