Naju-si Saves 990 Million Won Budget Through Contract Cost Review

Naju City, Jeollanam-do (Mayor Yoon Byung-tae) announced on the 20th that it saved 990 million KRW in budget through the contract cost review system in the first half of this year.

This amount is 157% of the savings compared to the first half of last year (as of 23.7.4), resulting from a thorough review of the appropriateness of project cost estimation through on-site inspections of large-scale construction project sites.

A panoramic view of Naju City Hall. [Photo by Naju City]

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

In the first half of this year, the city conducted contract cost reviews for a total of 206 cases amounting to 53.5 billion KRW, including construction projects over 100 million KRW, services over 50 million KRW, and goods/manufacturing procurement over 10 million KRW.

Instead of simple reductions, the focus was on fair and rational cost reviews, prevention of poor construction, and quality improvement. In particular, for safety aspects, even if costs increased, accident prevention measures were established.

As a result, the city achieved budget savings totaling 990 million KRW, including 740 million KRW from construction, 190 million KRW from services, and 60 million KRW from goods.

Mayor Yoon Byung-tae said, “We have achieved remarkable results through meticulous on-site inspections and rational cost analysis. The saved budget will be reinvested in projects that will create new opportunities for advancement in the second year of the 8th term of the elected administration.”

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