GS E&C, Sangdaewon2district selects new contractor… DL E&C threatens legal action

GS E&C 5 month 30 day in Seongnam, Gyeonggi Province, Sangdaewon2 district's redevelopment project. The association held an extraordinary general meeting on the same day and passed the relevant proposal. The decision resulted from the association's procedure to change the contractor.

The association passed proposals to select GS E&C as the new contractor and to terminate the existing contract award, among other items. The decision was described as being in line with the decision made in the previous 4 month. The association has thereby effectively terminated its contract award with DL E&C.

DL E&C[375500] won the project in 2015 and signed a construction contract in 2021. DL E&C claimed that the illegality of the association's decision had been established in the injunction lawsuit. The company said it would take legal action on this basis.

DL E&C has firmly warned that it will take legal action. The company said it would pursue procedures, including lawsuits, on the grounds that the association’s decision was unlawful. This has raised the possibility that legal issues may remain in subsequent proceedings.

The impact of this extraordinary general meeting and DL E&C’s response on the project schedule can be confirmed only after further disclosures or updates on the proceedings are available. So far, the key confirmed points are the association’s approval and DL E&C’s warning of legal action. The progress of the proceedings will need to be monitored through disclosures by the companies involved.