Gyeonggi Province Saves 37.5 Billion Won Through Contract Reviews... Achieves Both Fiscal Efficiency and Quality

Gyeonggi Province has reportedly saved 37.5 billion won in its budget last year through contract reviews.

The contract review system is a process for examining and verifying the appropriateness of the base and estimated prices for bids and contracts, as well as the amounts for design changes, for projects commissioned by Gyeonggi Province, cities and counties, and public institutions. For projects involving construction, services, and goods, the system reviews the application of standard cost calculation criteria and statutory expense rates, as well as market prices investigated and reported by entities such as the Public Procurement Service. The goal is to ensure project quality and safety and to manage finances efficiently through appropriate cost assessments.

In the previous year, Gyeonggi Province reviewed a total of 2,585 commissioned projects worth 2.0229 trillion won, resulting in savings of 37.5 billion won.

Notably, the province increased the budget by a total of 11.5 billion won in cases where securing quality and safety was necessary, moving beyond a simple focus on cost reduction.

Gyeonggi Provincial Government

In addition, Gyeonggi Province has taken several measures to enhance review capabilities, including: conducting inspections to improve the quality of contract reviews, strengthening the system through operational evaluations by city and county, awarding outstanding institutions and providing capacity-building training for staff, minimizing quality discrepancies through intensive training for new employees and phased task assignments, establishing new specialist positions, and extending the duration of dispatch assignments to cities and counties.

Furthermore, in the second half of last year, the province established an online contract review management ledger within the audit information system, which has been fully implemented since January this year. This enables automatic aggregation of statistical data and real-time analysis. As a result, the efficiency and accuracy of contract review work are expected to improve significantly.

An Sangseop, Chairperson of the Gyeonggi Province Audit Committee, stated, "The contract review system is evolving into a comprehensive management system focused on rational adjustments that ensure both project quality and safety, beyond merely adjusting costs," adding, "We will continue to enhance fiscal soundness and administrative reliability through data-driven, efficient reviews and by strengthening professional expertise."