▲ Ugun Group / CEO Inho Choi

It’s no longer the case that the construction and building sector is booming. In addition to increasing construction costs due to rising raw material and labor costs, some construction companies have gone under, leading to a growing distrust of the industry itself.

The building industry needs a breakthrough to survive. It is not just about building a good building, it is about providing accurate and transparent information. It is time for a service that reflects the needs of the owner, design, and even maintenance and asset management after completion.

 

From construction to management in one fell swoop

LCC for building owners

Ugun Group provides architectural planning, supervision, design, construction, real estate development, financing, land acquisition, maintenance, and asset management. 

The company provides services that introduce the concept of LCC in architecture. Life Cycle Cost (LCC) refers to the total cost of planning, designing, constructing, maintaining, managing, and disposing of a building.

There are two main types of construction costs: the initial planning and construction costs, and the operating costs. In many cases, construction companies are only involved in the construction costs, but not the subsequent operating costs.

Ugun Group CEO Inho Choi says “Once the building is built, the work of the contractor or architect is done, and the owner is left to manage the building and the asset, and a lot of the risks are invisible.”

Unless the owner is an expert, he or she has little understanding of the building, and different building materials have different maintenance costs. From the owner’s point of view, even if the building is successfully completed, there are often unexpected costs.

CEO Choi wanted to solve these problems and is preparing to launch an innovative all in one construction service model that combines the technical skills of the construction industry with the expertise of the service industry.

The company’s all in one service incorporates the concept of LCC (life cycle cost of a building) and provides systematic analysis of all necessary aspects of the business, from the planning stage of real estate development to feasibility study, design, construction, operation and asset management. These services help clients maximize convenience and efficiency as well as profitability.

 

Save time and get the best opportunity cost

The ultimate partner for building owners

Many people think of the building as the most expensive part of the project, but when it comes to LCC, the upfront costs are not a big part of the equation.

CEO Choi says “If you look at the 50-year life cycle of a commercial building, it costs more to maintain it over 50 years than it does to build it.”  It’s hard for a non-professional building owner to know about these later costs.

To prevent such problems, Ugun Group minimizes errors through accurate analysis from the beginning of construction, and sets clear standards for business performance after construction. By purchasing land for construction and providing a land design, Ugun Group eliminates the possibility of changing the building plan due to incorrect land acquisition or creating management problems in the future. In addition, it provides asset management such as facility maintenance services and leasing of the building even after completion, predicts the break-even point for the return on investment for the age of the facility, and provides appropriate timing and judgment for the sale and renovation of the building.

Normally, this would require going through multiple companies, which adds cost and time to the process, but Ugun Group handles it all in one. “By working with one company for each process, customers can save time, get the best opportunity cost, and maximize efficiency at a minimal cost,” says Choi.

In this way, the company acts as a reliable partner to help clients achieve maximum returns through all-in-one solutions from basic planning, land acquisition, design, construction, completion, and maintenance (maintenance, asset management).

 

Transparency in operation

A leader in deliverance

Since its establishment in 2003, Ugun Group has successfully executed various projects for private construction, such as the construction of apartments for a local housing association, as well as government and public construction, such as the construction of the Honorary Consulate General of India in Korea. It has applied years of know-how from design to the construction site to maximize reliability and efficiency.

The company is smartizing and providing transparency to its customers with a platform. In recent years, there have been various problems related to construction, which have led to a loss of trust in architects and construction companies.

“The construction industry is a technical and difficult field, so there are some closed parts, so it’s not a field that everyone can understand,” Choi said. In addition to this lack of transparency, there are often inaccurate costs posted online, which adds to the mistrust.

That is why Choi is bringing smartization and services to the construction industry. “I think having a mindset that can be open to customers is the direction the construction industry should go,” he said.

The company is pursuing eco-friendly construction to build a future-oriented building. It plans to build an eco-friendly apartment complex in Ulsan that uses renewable energy to make apartment management fees zero, and aims to build meticulous and thorough construction management and flawless construction through smartization, digitalization, and services in construction.

He says “We will establish ourselves as a company that reads the market and leads the way in the ever-changing digital economy by opening new markets even in a difficult market environment, and as a flexible company that always listens to our internal customers, our employees, and external customers.”

백정준 기자  googies@naver.com