Chungnam Saved 20.7 Billion KRW Last Year Through Contract Review... 145.6 Billion KRW Total Over the Past 5 Years

[Asia Economy (Hongseong) Reporter Jeong Il-woong] The Chungnam Province Audit Committee announced on the 5th that it reviewed contracts worth 1.2644 trillion KRW across 1,395 cases last year, including 589 construction projects, 397 service contracts, and 409 goods purchases, achieving a budget saving of 20.7 billion KRW.

From 2018 to 2022, the budget savings from contract reviews by the provincial audit committee reached 145.6 billion KRW. By year, savings through contract reviews amounted to 29.9 billion KRW in 2018, 36.2 billion KRW in 2019, 31.2 billion KRW in 2020, and 27.4 billion KRW in 2021.

The audit committee does not simply reduce project costs through contract reviews. Rather, in cases where projects were under-designed, it contributed to increasing budgets to improve safety and quality.

For example, last year the audit committee increased the budget by 4.2 billion KRW for 160 cases, including the Cheonan Rural Domestic Water Phase 3 (Buk-myeon District) construction project, preventing substandard construction and service contracts.

Additionally, when carrying out construction projects with contract amounts exceeding 1 billion KRW, if a design change requires a budget increase of 10% or more, the contract review committee conducts a feasibility review to allow design changes. Last year, 26 cases completed design changes, resulting in a total budget increase of 16 billion KRW.

Chairman Bae Byeong-cheol of the provincial audit committee stated, “This year as well, through routine audits and contract reviews, we will ensure that budgets are not excessively allocated or executed. At the same time, we will strive to prevent substandard construction and services to secure safety and improve quality.”

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