356 Contracts Worth 222.5 Billion Won Reviewed, Including 92 Construction and 134 Service Contracts
Efficiency Enhanced Through Proactive Guidance on Revised Standards and Guidelines
Ulsan City saved 6.2 billion won in its budget through contract reviews in the first half of 2025. This amount represents 2.8% of the total requested review amount of 222.5 billion won.
During the first half of this year, Ulsan City reviewed a total of 356 contracts worth 222.5 billion won.
By sector, the reviews resulted in savings of 2.6 billion won from 92 construction projects (including design changes) totaling 87.2 billion won, 3.5 billion won from 134 service contracts totaling 109.4 billion won, and 95 million won from 130 goods contracts totaling 25.9 billion won.
Notably, the average review period in the first half was shortened by 0.7 days compared to the same period last year, and the total savings increased by 236 million won, raising the savings rate by 0.1 percentage points. Overall, the savings performance exceeded that of the same period last year.
One major example of savings was the "Ilsan Beach Cultural Playground Landmark Project," where the appropriateness of an outstanding plan was re-examined and the planting of flowers was changed to city-supplied materials, resulting in a budget reduction of 110 million won.
In addition, for the "Ilsan Amusement Park Old Sewer Pipe Maintenance Project," which overlapped with the above project section, mutual coordination of construction schedules prevented redundant excavation and eliminated unnecessary paving, saving 30 million won. Through rational adjustment of project plans, a total budget efficiency of 140 million won was secured.
For the "OO Industrial Complex Development Project," the city recalculated the basic and detailed design costs according to engineering service fee standards, eliminated the cost of perspective drawings included in the district landscape plan, and reviewed the design safety inspection costs based on standard unit prices, resulting in savings of 1 billion won.
Additionally, the city supported the inclusion of omitted or under-designed safety management costs and industrial safety and health management expenses by requesting supplements, thereby working to enhance construction site safety and improve construction quality.
In particular, this first half, the city proactively provided guidance on practical matters relevant to contract review requests, such as changes in the application criteria for indirect construction costs in facility construction cost estimates and standards and guidelines for calculating environmental management costs. This contributed to greater efficiency in contract reviews and a reduction in repeated errors.
Kim Youngseong, the auditor, stated, "In the first half, savings in the service sector increased by 1.8 billion won compared to the same period last year, and the savings rate reached 3.2%, the highest among all sectors." He added, "On the other hand, the number of construction projects increased by 10, but the savings decreased by 1.4 billion won compared to last year. This appears to be due to the higher number of small-scale projects and the fact that 14 ongoing reviews have not yet been included in the statistics."
He went on to say, "Thanks to close cooperation between the review and project departments, reviews in the first half were conducted quickly and effectively. In the second half, we plan to further maximize savings by applying cost-effective construction methods suited to on-site conditions."
Ulsan City Hall.
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