Ulsan City Carefully Reviews Contracts for Goods and Services... Saves 5.9 Billion Won in Budget

343 Contract Reviews Worth 217.5 Billion Won in First Half of 2024

3.1 Billion Won Saved on Dream Center Construction and More

Ulsan City saved 5.9 billion KRW in budget through contract reviews during the first half of this year.

Ulsan City reviewed a total of 343 contracts, including construction, services, goods, and design changes, amounting to 217.5 billion KRW during the first half of this year. As a result, the city achieved budget savings of 5.9 billion KRW in 158 contracts.

To expedite project initiation, the statutory contract review period was reduced by 6.3 days from the required 10 days, resulting in an average processing time of 3.7 days.

By category, 80 construction contracts worth 132 billion KRW were reviewed, saving 4 billion KRW in 74 cases; 263 contracts for goods and others worth 85.5 billion KRW were reviewed, saving 1.9 billion KRW in 84 cases.

Among these, for the Paldeung Dream Center construction project, unnecessary work items and excessive quantities were reduced, while the quality management fee was increased by more than 50% compared to the previous amount, resulting in a budget saving of 310 million KRW.

For the relocation of transmission towers in the Yuldong district, duplicate material costs and unnecessary rebar processing were eliminated after on-site inspection, and assembly work suitable for the site was proposed, saving 180 million KRW.

In the case of the Onsan sewage treatment facility expansion, the existing rigid conduit was replaced with a lighter, threadless conduit, which not only improved work efficiency through faster and easier installation but also minimized tool use, thereby reducing the risk of accidents.

Additionally, for repair work on cathodic protection facilities at three locations including the Guyoung Bridge area, previously omitted disaster prevention technical guidance fees were included to ensure safety.

Any omissions or underestimations in industrial safety and health costs, quality management fees, etc., were corrected during the review, resulting in an additional 280 million KRW being allocated, and departments in charge were instructed to always include items directly related to safety.

Kim Youngseong, Audit Officer, said, "Through contract reviews, we are reducing budget waste and securing the effectiveness of construction by consulting with departments in advance to use economical construction methods and materials suitable for field conditions. In the second half of the year, we will hold workshops for staff to further improve cost estimation capabilities."

Ulsan City published and distributed a 2023 contract review casebook to improve the cost estimation skills of staff in ordering departments, including district offices, public enterprises, and affiliated organizations. In addition, a cost analysis advisory committee consisting of 15 members, including professors and private sector experts, is being operated to strengthen the areas of safety and cost analysis.