Who is the Thrifty Saver Saving 10.4 Billion Won in Ulsan Construction Budget? 'Design Cost-Effectiveness Review'

Ulsan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Ulsan City saw a significant budget-saving effect of over 10 billion KRW last year, thanks to the thrifty practice called ‘design economic feasibility review’.

On the 5th, Ulsan City announced that it saved more than 10.4 billion KRW in construction budgets by applying design economic feasibility review (VE, Value Engineering) to six construction projects in 2022.

Design economic feasibility review refers to re-examining the design completed by the project implementation department once again.

Experts from various fields review the economic feasibility and on-site applicability of the design by function and alternative to improve the function, performance, and quality of facilities, aiming to reduce construction costs while enhancing facility performance.

Since 2009, Ulsan City has been implementing VE for construction projects with a total construction cost of over 10 billion KRW among construction projects of Ulsan City and its districts/counties.

Last year, it was found that a total of about 10.4 billion KRW was saved in projects such as ▲Hoeya Sewage Treatment Plant Expansion Project (about 1.5 billion KRW) ▲4th Maintenance Work of Aging Sewage Pipelines (about 1.1 billion KRW) ▲Jungri District Local River Maintenance Project (about 700 million KRW) ▲Eonyang Fire Station Construction Project (about 300 million KRW) ▲Duseo Inbo District Urban Development Project (about 4.1 billion KRW) ▲Onsan Sewage Treatment Plant Expansion Project (about 2.7 billion KRW).

This amount accounts for 6.16% of the total construction cost of 168.8 billion KRW for the six construction projects.

Along with budget savings, Ulsan City also achieved results in enhancing the value of facilities by reflecting 261 creative ideas proposed by experts in various fields.

A representative excellent proposal was changing the planned pedestrian overpass on a 20m road to a traffic light and hump-type crosswalk to secure a pedestrian connection space between waterfront parks in the Duseo Inbo District Urban Development Project, saving about 2.7 billion KRW in construction costs while improving pedestrian convenience and safety.

An official from Ulsan City said, “Based on the accumulated know-how so far, we will strive this year not only to reduce construction budgets but also to improve user convenience and the functionality of public facilities.”

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