Dongbu Construction’s contract value has increased after signing a revised construction contract for the 'Highway Route No. 14 Hamyang–Changnyeong Construction (Section 2)' project currently underway with Korea Expressway Corporation.

According to a correction disclosure filed on the 17th, Dongbu Construction’s contract value increased from the previous 104.98549 billion won to 106.55755 billion won, representing an increase of 1.57205 billion won. Accordingly, the contract ratio relative to recent revenue also expanded from 17.93% to 18.20%.

The total project cost also increased from 174.97582 billion won to 177.59591 billion won, with Dongbu Construction holding a 60% construction stake in this project.

The project is a new highway construction being promoted in the area of Hwanggok-ri, Anui-myeon, Hamyang-gun, Gyeongsangnam-do. The contracting party is Korea Expressway Corporation, and the construction period runs from February 23, 2018 to December 31, 2026. Payment is made on a progress payment basis and includes advance payments.

Dongbu Construction explained, "The contract amount includes value-added tax," and added, "The contract amount and construction period may be subject to additional changes during the course of construction." The company also stated that it is currently in discussions with the client for an additional revised construction contract, and plans to make a further disclosure upon signing.

The construction industry expects this contract increase to have a positive impact on expanding Dongbu Construction’s order backlog and increasing future revenue recognition. In particular, expectations for improved performance in the civil engineering sector are growing as the government continues to expand its road infrastructure projects.