Public Procurement Service Applies 'Design Economic Feasibility Review' to National Key Projects

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Public Procurement Service announced on the 5th that it will apply the ‘Design Value Engineering (Design VE)’ service to important national projects going forward.

‘Design VE’ is a procedure that analyzes economic feasibility and other factors at the design stage to improve performance (quality) and review alternatives for cost reduction.

The Public Procurement Service has so far classified construction projects with a duration of over 2 years and a total project cost exceeding 20 billion KRW as ‘total project cost management target projects’ and has provided Design VE services alongside design appropriateness reviews upon requests from ordering agencies.

However, through regulation revisions in the second half of this year, the Public Procurement Service explained that it will expand the application of the ‘Design VE service’ to important national projects and projects requested by demand agencies lacking specialized personnel.

Previously, the Public Procurement Service enhanced the usability and maintenance convenience of facilities by presenting 125 alternatives through the Design VE service for the ‘Establishment of the Provisional Government of the Republic of Korea Memorial Hall’ construction project.

Additionally, it maximized the effects of Design VE by clarifying ambiguous cost responsibility divisions, supplementing unfair content, and deleting unnecessary functions.

Jung Moo-kyung, Administrator of the Public Procurement Service, said, “We will strive to propose alternatives that maintain costs while improving functions in promoting important national projects through Design VE,” adding, “Furthermore, the Public Procurement Service will actively support demand agencies facing difficulties in project implementation based on our expertise and know-how.”

This content was produced with the assistance of AI translation services.