Naju-si Saves 1.37 Billion KRW Budget Through Contract Review Last Year

[Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yuk-bong] On the 25th, Naju City in Jeollanam-do announced that it saved 1.37 billion KRW in budget last year through the contract review system.

The contract review system is a system that reviews the appropriateness of cost estimation before bidding or contract signing for construction, services, goods, and manufacturing purchase projects ordered by the city hall and its affiliated institutions.

The purpose is to adjust contract amounts through the review, prevent budget waste factors in advance, and operate local finances transparently and efficiently.

The city conducted contract reviews on a total of 348 cases amounting to 76.8 billion KRW last year for construction projects over 100 million KRW, services over 50 million KRW, and goods and manufacturing purchases over 10 million KRW, according to the cost review standard amounts.

They carefully reviewed the appropriateness of cost estimation and the suitability of construction methods by considering related materials such as the annually revised standard unit price, project purpose, scale, and site conditions.

In particular, the focus was on fair and rational cost review rather than mainly reducing amounts, preventing poor construction, and improving quality, to ensure that appropriate project costs were executed.

Through this, the city achieved a budget saving effect of 1.08 billion KRW for construction, 210 million KRW for services, and 80 million KRW for goods, totaling 1.37 billion KRW.

Since last September, the scope of review targets was expanded to include private capital subsidy projects over 50 million KRW following the revision of the contract review work processing regulations, saving 140 million KRW and enhancing the proper management of subsidy budgets and transparency of budget execution.

Meanwhile, since the contract review work processing regulations were established in 2010, the total budget saved through contract reviews until last year amounts to 21.94 billion KRW.

A city official said, “The saved budget is reinvested in social infrastructure and convenience facilities to promote regional development and improve citizens’ quality of life,” and added, “We will continue to prevent budget waste factors in advance and enhance administrative trust through thorough contract reviews and the application of construction methods suitable for site conditions.”

Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yuk-bong bong2910@asiae.co.kr