Revitalizing the Local Economy Through Local Product Purchases
Minimizing Administrative Gaps and Speeding Up Execution with On-Site Contract Reviews
Jeonnam Province has reduced its budget by approximately 44.8 billion won over the past year through the operation of the contract review system. The photo shows an on-site contract review in Yeongam County, which minimized administrative gaps and achieved rapid execution effects. Provided by Jeonnam Province. Photo by Jeonnam Province
Jeonnam Province announced on May 15 that it saved 44.8 billion won from its budget last year through the operation of the contract review system.
The contract review system is a process in which local governments and affiliated organizations examine various projects?including construction, services, and goods procurement?by reviewing cost estimation, application of construction methods, and the appropriateness of design changes.
Last year, Jeonnam Province reviewed a total of 1,247 cases worth 1.6261 trillion won, including construction projects over 500 million won (300 million won for specialized construction), service contracts over 200 million won, and goods procurement over 20 million won.
Jeonnam Province stated that since the implementation of the contract review system in 2008, it has saved a total of 1.2368 trillion won in budget and contributed significantly to revitalizing the local economy by purchasing 1,548 billion won worth of 3,212 products from the Jeonnam region.
In practice, the province introduced a consultative contract review system to support local businesses, encouraging the prioritization of locally produced products. As a result, last year, 350 privately supplied materials worth 19.2 billion won were converted to government-supplied materials within the province, among other achievements.
In particular, the province’s on-site contract reviews, conducted at least once a week in cities and counties (57 times, 287 cases), have minimized administrative gaps for applicants and reduced the review period from 10 days to 5 days, enabling rapid execution. This administrative service has received a positive response.
Jeonnam Province also published and distributed a practical guide and casebook for contract reviews, based on new standards and accumulated expertise, to cities and counties for use in their work.
To provide opportunities to learn about the purpose of the contract review system, cost estimation know-how, and the latest construction cost estimation techniques, Jeonnam Province plans to hold the “2025 Contract Review Workshop” next month.
Kang Miseon, Director of the Accounting Division at Jeonnam Province, said, “We will work to revitalize the stagnant local economy and create quality jobs by making construction and service costs more realistic and encouraging the use of local products.” She added, “Through fair and reasonable contract reviews based on communication and empathy, we will ensure that the budget is not wasted and is used appropriately where needed.”
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