Gwangyang City Actively Utilizes Contract System Before Start of Next Fiscal Year

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Gwangyang City announced on the 18th that it will actively utilize the ‘Pre-Fiscal Year Contract System’ under the Act on Contracts to which Local Governments are Parties to ensure smooth progress of next year’s projects.

The Pre-Fiscal Year Contract System allows contracts to be concluded in advance within the confirmed budget range of the fiscal year before the fiscal year starts or before budget allocation, for contracts that cannot be interrupted due to their nature, such as urgent disaster recovery contracts or lease, transportation, and storage contracts.

Since next year’s budget is finalized at the end of the year after approval by the city council, projects that must be implemented from January 1 every year can secure continuity by concluding contracts in advance using this system.

Additionally, for projects selecting contractors through bidding announcements (estimated price of 20 million KRW or more), the preparation period before contract conclusion, which can take from as short as 7 days to as long as about 30 days, can be shortened, enabling rapid project implementation.

Park Bong-yeol, head of the Accounting Division, stated, “Last year, we concluded 114 contracts worth 6.6 billion KRW using this system, contributing to prompt execution,” and added, “This year as well, we have instructed all departments to actively implement this system.”

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