[법으로 읽는 부동산]
Recently, as new apartment collapses have occurred one after another, concerns about large-scale new apartment construction across the country are growing.
Although there are places where there are problems from the design stage, safety issues have recently become the biggest issue, such as when construction is different from what was designed or when rebars are missing, the quality of the concrete deteriorates and there is a risk of collapse, and in some places, flooding occurs due to heavy rain. It has been done.
In reconstruction and redevelopment project areas that are about to begin construction, construction costs must be lowered during the construction cost negotiation process, but the side effects of reducing construction costs are leading to poor construction, leading to growing anxiety. As a countermeasure, the government imposes a business suspension on construction companies, but is business suspension really the best measure?
Continued concerns about poor construction by construction companies cannot be unrelated to the recent increase in construction costs. Compared to just two years ago, not only are prices rising, but raw material prices are rising due to the effects of the war between Russia and Ukraine, which has a significant ripple effect on the construction business.
In particular, as this situation is prolonged, production costs have increased further, and the construction company is not willing to proceed with the construction, let alone complete it, at the previously estimated construction cost.
In one business district in Seoul, the construction company halted construction when the construction cost could not be coordinated with the union that implemented the project, and the move-in schedule was delayed. In a situation where construction cost increases that exceed expectations have become an unavoidable reality, coordination is not easy because the project implementer must prevent the increase in construction costs as much as possible to improve business feasibility.
In the end, it seems that missing rebar or cost-saving construction methods may lead to poor construction.
It is impossible to reduce construction costs by doing poor construction. Suspension of business or imposition of fines may be issued as a warning to construction companies or to prevent future accidents, but there is considerable doubt as to their effectiveness.
Moreover, if we look at the cases where business suspension has been imposed on construction companies so far, the construction companies somehow continue construction through legal action. There is a set construction period in the contract, and if the deadline is not met, the contractor must take responsibility, so the contractor has no choice but to respond.
In other words, when a business suspension order is issued, the construction company files a provisional injunction requesting the court to suspend the execution of the business suspension and requests that the business suspension be suspended until full-fledged administrative litigation is completed. If such a temporary injunction application is accepted, the business is in effect suspended. It can be seen that the effect is almost non-existent.
This measure by the government can be said to be the best measure for the safety of people who will move into apartments built in the future. However, it is a matter of reconsideration whether the degree of damage caused to union members in reconstruction or redevelopment areas where construction is currently underway or scheduled to proceed has been taken into consideration.
In particular, if the business suspension of construction companies continues, additional damage may occur in business areas where construction is already in progress or is about to be completed, as the occupancy schedule is delayed or the construction start or completion schedule is delayed.
If the project is delayed, the project cost may increase in the process, and the increase in project cost is fully borne by the union members who agreed to the project.
A few years ago, there was a redevelopment site where the construction company exercised a lien to block occupancy if the increased construction costs were not paid ahead of move-in. Recently, as construction costs have increased rapidly, such places are appearing again.
In some cases, union members bear the cost of construction without even considering whether it is an appropriate cost, and cry over their move-in. The project has been delayed for several years, and I thought it was finally making progress, but suddenly I have to bear the burden of unexpected construction costs due to the rise in raw material prices. It is a harsh reality that cannot be blamed on the economic downturn and cannot be called unlucky.
For union members in reconstruction and redevelopment areas, it is very welcome when project costs are reduced and construction progresses quickly. However, if construction progresses quickly and leads to poor construction, it is a pity that this becomes only possible at the expense of safety.
It would be great if the maximum benefit could be achieved with the minimum effort, but clear principles must be maintained. Although our awareness is gradually increasing, I hope that we will live in a society where principles are not only followed when a major accident occurs or when the government takes strong measures, but where unreasonable projects or tricks for huge profits are naturally excluded.
Hyejin Choi, Senior Attorney at Centro Law Firm
