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[Apha Biz=(Chicago) Reporter Paul Lee] Significant business damage is expected to be inevitable as the government has decided to push for the same suspension of business for up to 10 months for other construction companies that participated in the stake in the form of a consortium with GS E&C in connection with the collapse of the underground parking lot of the Geomdan apartment in Incheon.
According to the Ministry of Land, Infrastructure and Transport on the 29th, Land, Infrastructure and Transport Minister Won Hee-ryong said GS E&C plans to issue an eight-month suspension of business under its minister's authority the previous day and ask Seoul to issue a two-month suspension, citing unfaithful safety inspections.
The Ministry of Land, Infrastructure and Transport says it will apply the same disposition to construction companies that participated in the consortium of construction companies.
This is the highest level of disciplinary action the government can make. Under the Framework Act on the Construction Industry, the Minister of Land, Infrastructure and Transport can impose a one-year suspension if the construction work is poorly constructed intentionally or by negligence, but if it is not a fatal accident, he can dispose of it for up to eight months.
The apartment in Geomdan, Incheon, where the accident occurred, was ordered by GS Engineering & Construction in a consortium with Dongbu Engineering & Construction and Daebo Engineering & Construction, and the project was carried out in a joint implementation method.
Usually, consortium projects are divided into the equity implementation method and the joint implementation method, in which one representative construction company directs and supervises all construction and the remaining construction companies participate in only shares.
There is a clear difference from the method of carrying out the construction by dividing the entire construction area by the ratio of equity participation and taking responsibility within the stake in the event of a problem.
These two construction companies plan to explain as much as possible during the hearing. The Ministry of Land, Infrastructure and Transport's ex officio disposition must go through a hearing process for deliberation. It is expected to take three to five months for the actual disposal.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
