Daejeon City Saves 12.8 Billion KRW Budget Through Pre-Contract Review

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City announced on the 2nd that it saved 12.8 billion KRW in budget through routine audits and contract cost reviews for 823 projects worth approximately 436.3 billion KRW ordered in the first half of this year.

The contract cost review system is a system that examines the appropriateness of cost estimation, construction method selection, and design change increase/decrease amounts for ordered projects.

Through this system, the city saved budgets of 4.2 billion KRW for business offices, 4.0 billion KRW for the headquarters, 2.8 billion KRW for autonomous districts, and 1.8 billion KRW for public enterprises.

This result was achieved by adjusting and reflecting unreasonable construction types and methods, excessive estimation of quantities and rates, supplementing omitted construction items, and correcting errors in labor and unit price application based on accumulated review cases and cost estimation standards from the contract review department.

The city expects the contract review target this year to be about 1,300 cases worth 600 billion KRW and is promoting contract review work with a cumulative budget saving goal of 15 billion KRW.

Lee Young-geun, Chairman of the City Audit Committee, said, “We will enhance the efficiency of contract review work by preventing excessive or insufficient cost estimation, improving the quality of contracted deliverables, and ensuring transparency in reviews.”

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