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Construction Giant Ssangyong E&C Set to Promote Korean-Type Hospital Construction Around the Globe

2020-07-14

Since its foundation in 1977, Ssangyong E&C has built an enviable track record in both domestic and overseas construction. The company’s prolonged success in securing major overseas contracts has given it the nickname “the leader in overseas construction.” Thus far, Ssangyong E&C has secured an impressive total of 167 construction contracts in 21 countries, worth a combined total of USD 13 billion.

The delivery of major international landmarks, including the Marina Bay Sands Hotel in Singapore and the Royal Atlantis Resort & Residences in Dubai, has showcased the company’s superior construction prowess in high-end construction. Similarly, the accident-free completion of an extremely challenging subway section project in Singapore, known as Downtown Line (DTL) Section 921, has been recognized by the country’s Land Transport Authority (LTA).

Ssangyong E&C’s unparalleled construction expertise is its weapon in the post-COVID world. “To secure competitiveness in the next decade, we must generate profits by narrowing our focus and concentrating on what we can do best,” Chairman and CEO S. Joon Kim said in his New Year’s address. “Let us build our own unique niche as Korea’s representative construction company, with strengths that set us apart from our competitors.”

With the spread of COVID-19, the importance of medical facilities has been underscored as never before. As such, the company is focusing its efforts on securing hospital construction contracts. “Countries across the world are paying more attention to Korean-type medical facilities. Amid this climate, contractors with the strongest hospital construction track record will likely lead the industry,” a company official said.

 

◇ Covid-19 Sheds New Light on Medical Facilities, the ‘Crown Jewel’ of Architecture

The global impact of COVID-19 has increased awareness of the importance of medical facilities, raising calls for an increase in emergency hospital beds and the construction of hub hospitals.

“With the COVID-19 pandemic, medical facilities have become relatively more important than other types of facilities. As a result, we expect that approvals for new hospitals will be fast-tracked,” an industry official said. “Local municipalities will also probably prioritize hospital-related budgets.”

Dubbed the “crown jewel of architectural construction,” hospital construction is well-known for its extreme difficulty. There are very few contractors with related expertise, which sets a high barrier for companies that aim to enter a bidding war. 

Unlike apartment buildings, where utility infrastructure (e.g. electricity, heating, and piping systems) required for each room are fairly uniform and simple, hospitals require the installation of unique and complicated infrastructure in each room. Every space (e.g. an operating room, an inpatient room and a doctor’s office) has its own purpose, and design changes tend to occur frequently.

Further complicating the issue, a hospital design must take into account routes that can minimize the spread of virus infections and the physical movement of healthcare workers. Moreover, the construction must be to exacting specifications to ensure proper installation of advanced medical equipment.

 

◇ An Active Builder of Medical Facilities at Home and Overseas

Together with Daewoo E&C, the company is currently working on the construction of the Woodlands Health Campus (WHC), a large-scale advanced general hospital in Singapore. To be located in the Woodlands area in northern Singapore, this 1,800-bed hospital will consist of eight buildings (B4-7F), with a site area of some 76,600 m2.

The largest hospital in Singapore in terms of hospital beds, the WHC will feature some 9,890 items of medical equipment. The hospital will comprise four separate healthcare institutions (i.e. a general hospital, a community hospital, a nursing home and a hospice facility), all featuring advanced IT technologies.

Ssangyong E&C, the main contractor, was able to win this mega contract (worth USD 740 million) against Japanese contractors, traditionally strong contenders for hospital construction bids, because the company’s exclusive expertise was well recognized by the client. The company even assigned 50 employees to its special BIM task force. Building information modeling (BIM) is the latest development in construction technology, which can reduce man-hours, costs and errors by creating 3D simulations prior to actual construction.

In the domestic market, the company is also working on the construction of Eulji University Hospital (worth approximately USD 300 million). This 1,234-bed hospital (B5-15F) is being constructed on a site area totaling 124,399 m2. When completed, it will be the largest hospital in the northern part of Gyeonggi Province. This project is also the country’s largest single hospital construction contract. Construction began in January 2017, with the hospital expected to open in March 2021.

Ssangyong E&C is planning to collect and reflect the opinions of healthcare workers from all 20 medical departments before the framing process and the installation of partition walls begin. At the same time, the company is researching the latest trends in medical equipment and discussing ideas with the client for construction- and structure-related details.

In addition to hospitals, the company has also completed the construction of the Bio Research Complex (BRC). The BRC is a medical knowledge industry cluster, where research and treatment take place side-by-side, based on advanced diagnosis and treatment equipment focused on neurological diseases. Located in Songdo, Incheon, the BRC will be home to a mixed-use building (B2-9F) and Gil Hospital’s Brain Disease Center (B2-3F).

“When it comes to a bid for the construction of a world-class hospital, merely passing the pre-qualification (PQ) phase is extremely challenging,” a company official said. “In such bidding wars, our company has a competitive edge because our strong track record can positively influence the PQ phase and subsequent tenders.”

“The number of hospital beds delivered is an important consideration in such tenders, and Ssangyong E&C has so far built more than 12,000 hospital beds. We have also constructed 20 hospitals in Korea and five more in countries such as Singapore and Malaysia,” he added. “Since we are so highly qualified, we will actively engage in future bidding wars.”