Seoul launches one-stop center to resolve reconstruction cost disputes

The Seoul Metropolitan Government is establishing a dedicated support center to handle construction cost disputes at redevelopment and reconstruction sites, covering everything from initial consultations and mediation to post-agreement follow-up under one roof.

The city launched the Construction Cost 120 Center on Wednesday. The integrated service window supports the entire construction cost process, from contractor selection and construction contracts to cost verification and dispute mediation.

Seoul had previously operated a range of separate measures, including a pre-notification system for cost increase requests, ongoing monitoring, pre-contract consulting and cost verification by the Seoul Housing & Communities Corporation, and the dispatch of conflict-resolution coordinators. However, disputes between associations and contractors often dragged on before mediation was sought, and the fragmented support system across different agencies limited the city's ability to respond quickly.

Even after both sides reached an agreement on construction costs, delays in follow-up procedures — such as holding a general assembly or signing an amended contract — pushed project timelines back again. Through the new center, Seoul plans to provide continuous management from pre-dispute consultations through to post-agreement procedures.

The center is located on the seventh floor of Seoul City Hall's Seosomun 2 Annex. It is open on weekdays from 1 p.m. to 5 p.m. and is free of charge for parties involved in urban renewal projects, including redevelopment and reconstruction associations, preparatory committees, association members and landowners.

Consultations cover contractor selection plans and contracts, construction contracts, and cost increases and verification. The center draws on a pool of 33 specialists — 15 lawyers, seven urban renewal experts and 11 urban administration experts. Two specialists from relevant fields and one civil servant rotate through daily to handle consultations.

Simple inquiries about regulations and procedures can be handled by phone without an appointment. Those requiring in-depth consultation on construction contracts or cost increases and verification can search for the Construction Cost 120 Center on the Seoul Public Service Reservation website to book an in-person appointment.

Sites where construction cost disputes have already broken out will also receive what the city calls "construction cost doctors." Specialists will visit the site to assess the issues between associations and contractors and work through a consultative body to find solutions, with support extending through the drafting and signing of settlement agreements.

Management continues even after a dispute is resolved. The center will monitor whether follow-up steps — such as convening a general assembly and signing an amended construction contract — proceed properly, with the aim of preventing project delays from resurfacing over cost issues.

Seoul plans to run the center on a trial basis through December before analyzing consultation patterns, user demand and on-site feedback to refine its operations, with a full launch set for January. Accumulated consultation cases will also be analyzed to identify recurring types of construction cost disputes and detect early warning signs.

The city said reducing ground-breaking delays caused by construction cost disputes will help it accelerate toward its target of breaking ground on 310,000 urban renewal units by 2031.

"Construction cost disputes can lead to project delays and added burdens for association members, so it is important to get ahead of them," said Myeong No-jun, head of the Seoul Metropolitan Government's housing bureau. "The Construction Cost 120 Center will be the first point of contact for cost disputes and will provide support through to resolution, operating a seamless one-stop support system from contractor selection to conflict resolution."