Sinan-gun Saves 1.1 Billion Won Budget Through Contract Review System Operation

120 Billion KRW Saved Over the Past 5 Years, Improving Operational Efficiency

[Asia Economy Honam Reporting Headquarters Reporter Seo Young-seo] Sinan-gun, Jeollanam-do (Governor Park Woo-ryang) saved 1.1 billion KRW in the budget by operating the contract review system in 2022.

According to the county on the 12th, the contract review system is a system that pre-examines and reviews the appropriateness of the base amount, estimated price, and design change increase/decrease amount for bids and contracts of construction, services, and goods ordered by local governments.

Scenic View of Shinan-gun Government Office
Photo by Shinan-gun

The review targets in Sinan-gun are cost reviews for construction projects over 100 million KRW, services over 50 million KRW, goods over 20 million KRW, and projects with contract amounts over 300 million KRW where the contract amount increases by 10% or more due to design changes.

Last year, through the review of a total of 597 cases worth 136.3 billion KRW (252 construction cases, 87 service cases, 248 goods cases), 1.1 billion KRW was saved, and the savings over the past five years (2017?2021) reached 12 billion KRW.

Currently, with the continuous implementation of contract reviews, the application of standard unit costs is being standardized, and due to the improved work capabilities of project department personnel, the contract review savings rate is decreasing every year.

A county official said, “We will continue to promote reasonable contract reviews considering the purpose, nature, scale, and regional characteristics of contracts to prevent poor construction and contribute to sound financial management.”