Reducing Budget Waste through Contract Review and On-site Audits

Yongin City in Gyeonggi Province announced on the 20th that it achieved a budget savings effect of 1.05 billion KRW through preventive audits such as contract reviews and on-site inspections for construction projects commissioned by the city this year.


Yongin City, "Saved 10.3 Billion KRW in Budget through Preventive Audits of Construction Projects" View original image

On-site inspections of construction projects involve verifying the site from the design stage to review economic feasibility and propose realistic alternatives to reduce trial and error. These inspections are conducted to address issues that are difficult to correct or remedy through post-audits. The contract review system examines the costs of construction, services, and goods purchases above a certain amount commissioned by each department to correct deficiencies such as excessive design or calculation errors.


The city explained that through contract reviews of a total of 853 cases this year, including 492 construction projects, 311 service contracts, and 50 goods purchases, it adjusted excessive designs and improved construction methods considering site conditions, resulting in budget savings of 6.69 billion KRW.


Additionally, on-site inspections were conducted for five construction projects that were either in the final design stage or about to commence, adjusting designs that differed from site conditions and preventing budget waste of 3.66 billion KRW.



Along with this, the city also conducted safety management inspections targeting 31 large-scale construction projects commissioned by the city to identify risk factors in the construction process in advance. In accordance with the 'Construction Technology Promotion Act,' the city checked whether mandatory design safety reviews at the design stage and safety management plan establishment during the construction stage were properly implemented, and took measures such as issuing institutional warnings to agencies that handled these inadequately.




A city official stated, "We will continue to carry out preventive audits in various fields to ensure that the budget is not wasted unnecessarily."


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

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