16 Project Proposals, 598 Cases, 32.3 Billion KRW Savings
Ulsan City announced on the 6th that it achieved results such as 598 creative proposals and budget savings of approximately 32.3 billion KRW through this year's Value Engineering (VE) review.
Value Engineering (VE) is a process where experts analyze the main functions and performance during the design phase of construction projects above a certain scale, and enhance the facility's performance by improving economic efficiency, constructability, safety, and convenience.
Ulsan City is expanding the VE review not only for public construction projects with a total construction cost of 10 billion KRW or more, which are legally mandated, but also for public construction projects with a total construction cost of 5 billion KRW or more since July last year.
As a result, while 7 projects saved 12.3 billion KRW in 2022, last year 11 projects saved 13.7 billion KRW, and this year 16 projects achieved budget savings of 32.3 billion KRW.
The major budget-saving projects this year include ▲ Cheongnyang Sewage Treatment Facility Construction Project (over 5 billion KRW) ▲ Local Road No. 69 Improvement Project (over 3.5 billion KRW) ▲ Gangdong Coastal Park Development Project (over 1.1 billion KRW) ▲ Hoeya Dam Water Pipeline Pressurization Station Installation Project (over 800 million KRW), among others.
Along with budget savings, Ulsan City also reflected 598 creative proposals suggested by experts in various fields, resulting in enhanced value of the facilities.
As an excellent proposal, experts pointed out that the single inflow and distribution tanks of the Cheongnyang Sewage Treatment Facility Construction Project lacked a method to block continuous sewage inflow, causing maintenance difficulties at other treatment facilities as well. Reflecting this, an additional budget of about 100 million KRW was allocated for installing inflow distribution tanks, ensuring structural safety and facilitating maintenance.
An official from Ulsan City stated, “Based on the accumulated operational achievements so far, we will strengthen the Value Engineering review next year as well to create convenient and high-quality facilities that citizens can feel and experience.”
Ulsan City Hall.
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