Simultaneous Management of Senior Welfare Town and Complex Government Office in Samseong-dong
25% Cost Reduction Compared to Separate Contracts
On December 26, Gwanak-gu, Seoul (District Mayor Park Junhee), announced that it had achieved a budget saving of 1.4 billion KRW by integrating the construction project management service contracts for two adjacent public buildings.
Location map of the integrated construction project management service area in Gwanak-gu. Provided by Gwanak-gu.
The district combined the construction project management services for the 'Gwanak-gu Senior Welfare Town' and the 'Samseong-dong Complex Government Office,' both of which are being developed simultaneously in the Samseong-dong area, into a single contract. Construction project management services are technical services that professionally oversee and coordinate the entire construction process on behalf of the client. They are a key element that ensures high-quality construction within the set budget and timeframe by managing schedules and reviewing design changes.
The two facilities, for which the district decided on integrated procurement, are located across the street from each other. The Senior Welfare Town, currently under construction at 301-1 Samseong-dong (1,284 square meters), will be a building with two basement levels and five above-ground floors, totaling a floor area of 4,200.7 square meters, and will house a senior welfare center and a nursing home. On the opposite site (1,335 square meters), construction is scheduled to begin in January next year on a complex government office building, which will have one basement level and four above-ground floors (total floor area: 3,243.3 square meters) and will provide spaces for administrative and welfare services as well as community leisure programs.
The district noted the similarities in the construction start dates, locations, and processes of the two projects. According to its analysis, individual contracts would have cost approximately 5.5 billion KRW, but by integrating the projects, the service fee was reduced to 4.1 billion KRW, resulting in a 25% reduction in total service costs.
A district official explained, "By unifying the management entity for the services, we reduced repetitive administrative work such as document preparation and review, and maximized administrative efficiency throughout the procurement process."
Park Junhee, Mayor of Gwanak-gu, stated, "This case is the result of proactive administration aimed at preventing unnecessary budget waste and improving administrative efficiency. Through thorough and efficient site management, we will minimize inconvenience to residents and ensure rigorous financial efficiency so that residents' valuable tax money is not wasted, ultimately providing even better public services in return."
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