Chungnam Saves 31.1 Billion KRW in Budget Through Contract Review... Coordination of Under-Design and Increased Project Cost Efficiency

[Asia Economy (Hongseong) Reporter Jeong Il-woong] The Chungnam Provincial Audit Committee announced on the 4th that it saved a total budget of 31.1 billion KRW through contract reviews of 1,470 cases (13.005 trillion KRW) including construction, services, and supplies last year.

The savings by project are detailed as 25.5 billion KRW from 626 construction cases, 4.8 billion KRW from 392 service cases, and 800 million KRW from 452 supply cases.

This achievement resulted from reviewing the cost estimation by design items, the appropriateness of site conditions, and the selection of construction methods to reduce unnecessary budgets.

In particular, the Provincial Audit Committee not only reduced budgets but also increased project costs related to safety and quality improvements depending on whether under-design was identified, thereby enhancing the effectiveness of budget allocation.

In fact, the committee emphasized that it contributed to preventing poor-quality services and construction by increasing the budgets of 1.2 billion KRW for 64 projects, including the integrated construction project management service for the Guryong?Yongdu and Hwaseong?Janggok local road widening projects, the dangerous road improvement project at the Ungok intersection on National Road No. 40, and the Yesan New Vitality Creative Center project.

Separately, the committee operates the "Construction Project Resource Information Sharing System" to recycle discarded resources such as unused soil, paving blocks, culverts, and trees generated at various construction sites. So far, it has recycled 474 cases of earth and stone totaling 566,059㎥, saving 1.9 billion KRW in budget.

A representative of the Provincial Audit Committee stated, “Contract reviews are promoted not for the purpose of budget reduction but to determine appropriate unit prices by project scale and to increase budgets in quality and safety areas.” He added, “Furthermore, we will strive to create opportunities for the use of locally produced construction materials within the province to revitalize the regional construction economy through contract reviews.”

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