Daejeon City Saves 8.7 Billion KRW in Budget Through Contract Review in First Half of the Year

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City announced on the 12th that it saved 8.7 billion KRW in budget during the first half of this year through the contract cost review system.

The contract reviews were conducted on 953 cases amounting to 306 billion KRW. This system aims to ensure that budgets are not unnecessarily spent by assessing the appropriateness of cost estimation, construction method estimation, and the increase or decrease amounts due to design changes.

Through this, the city saved budgets of 2.6 billion KRW in business offices, 2.3 billion KRW in the main office, 2.1 billion KRW in autonomous districts, and 1.7 billion KRW in public enterprises. By contract type, it was 5.4 billion KRW for 334 construction cases, 2.6 billion KRW for 246 service cases, and 700 million KRW for 373 goods cases.

The budget savings resulted from adjustments and reflections based on past review cases and cost estimation standards, correcting unreasonable work types and methods, excessive quantities and rates, supplementing omitted work types, and errors in labor and unit price application.

The city currently reviews comprehensive construction projects over 300 million KRW, electrical, communication, mechanical, and landscaping construction projects over 100 million KRW, services over 50 million KRW, and goods purchases over 20 million KRW to ensure efficient financial management.

Choi Jin-seok, Chairman of the City Audit Committee, stated, “In the second half of this year, we will prevent excessive or insufficient cost estimation, improve the quality of contracted deliverables, and secure transparency in reviews to ensure that contract review operations are efficiently managed.”

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