Naju-si Saves 1.72 Billion KRW Last Year Through Contract Cost Review

Published 03 Jan.2024 14:29(KST)

Naju City in Jeollanam-do saved 1.72 billion KRW in its budget last year through contract cost reviews. This represents a 191% increase compared to 2022, reflecting the fruits of efficient financial management.

According to the city on the 3rd, contract cost review is a system that examines the appropriateness of cost estimation before contract signing for construction, services, and goods/manufacturing procurement projects ordered by the city hall and its affiliated agencies.

A panoramic view of Naju City Hall. <br>Photo by Naju City

A panoramic view of Naju City Hall.
Photo by Naju City

The city has been strengthening job competencies for proper budget execution and financial soundness by conducting employee job training sessions in the first and second half of the year and publishing and distributing contract review casebooks.

In particular, the review focuses not merely on simple cost reductions but on fair and rational cost assessments and prevention of poor construction quality.

As a result, the city saved a total of 1.72 billion KRW, including 1.18 billion KRW from construction, 380 million KRW from services, and 160 million KRW from goods.

A city official stated, “Since some contract review authorities were transferred to Naju City from Jeollanam-do in August last year, the number of contract reviews increased by 21% to a total of 421 cases compared to the year before last, which also increased the amount saved. We will continue to prevent unnecessary budget waste in advance and strive for sound and efficient financial management.”

Starting this year, the city plans to implement on-site contract cost reviews to promptly process large-scale national subsidy projects, design change projects due to changes in field conditions, and private subsidy projects that departments request separate reviews for.

Mayor Yoon Byung-tae said, “Field-centered contract reviews are important to prevent unnecessary budget leakage even before project implementation. The saved budget will be reinvested in policies that citizens can feel and in job creation to revitalize the local economy.”