By Diplomacy Journal Lee Kap-soo

GS E&C, Dongbu E&C, and Daebo E&C have received a one-year ban from bidding on public works projects from LH in connection with the collapse of the underground parking lot of an apartment building in Geomdan, Incheon, last year.

GS E&C and Dongbu E&C announced on May 3 that they have been notified by LH that they have been banned from bidding on public works projects.

As a result, the companies will not be able to participate in bidding for public works projects ordered by domestic public institutions for one year from May 22 this year to May 21 next year.

LH said the reason for the bid restriction is that “the contractors of Incheon Geomdan AA13-1BL 5 area, AA13-2BL area, and Incheon Shinmun Apartment Construction Project are those who have engaged in unfair construction, such as shortening the durability of the structure and harming the safety level, contrary to the design documents.”

An LH official said, “A contract review committee was held the day before for poor construction and supervision companies and decided to restrict the disposal of bids for GS E&C, Dongbu E&C, and Daebo E&C.”

According to the Enforcement Rules of the National Contract Act, those who engage in unfair construction, such as shortening the durability of a structure or harming safety, can be restricted from bidding for one year.

GS E&C and Dongbu E&C said they plan to file an application for and a lawsuit to cancel the decision.

“If the application for suspension of execution is accepted, it will not affect their eligibility to participate in the bidding process until the judgment of the revocation lawsuit,” a GS E&C official said.

Previously, GS E&C received an eight-month and one-month business suspension from the Ministry of Land, Infrastructure, and Transport and the Seoul Metropolitan Government, respectively, in connection with the collapse of an underground parking lot at the Geomdan apartment complex in Incheon.

In response, the court accepted GS E&C's application for suspension of execution, and the main lawsuit is currently underway.