Haenam-gun Saves 4.54 Billion Won in Budget Through Contract Review

Pre-Contract Review of Cost Estimation Appropriateness and Elimination of Waste Factors

Haenam-gun, Jeollanam-do, reviewed a total of 401 contracts last year, including construction, services, and goods purchases, saving a budget of 4.54 billion KRW. Contract review is a system that examines and verifies the appropriateness of the base amount for bidding and contracts, as well as the increase or decrease amounts due to design changes for projects commissioned by local governments.

According to the county on the 8th, the review targets are cost reviews for construction projects over 100 million KRW, services over 50 million KRW, goods over 20 million KRW, and projects with contract amounts over 300 million KRW where the contract amount increases by 10% or more due to design changes.

The county conducts pre-contract reviews to eliminate waste factors by checking whether cost estimation is appropriate, whether the chosen construction methods are suitable, and whether products produced locally are reflected.

Haenam-gun Office Building Exterior View

The main content involved the contract review department applying review cases and cost estimation standards to adjust overly designed work types and methods, quantities, and rates that did not fit site conditions, as well as supplementing omitted work types.

Through this, last year, a total of 401 cases and projects worth 144.5 billion KRW were reviewed, saving 3.98 billion KRW from 258 construction cases, 470 million KRW from 84 service cases, 60 million KRW from 11 design change cases, and 30 million KRW from 48 goods cases.

Haenam-gun plans to enhance financial soundness and administrative transparency by lowering the target amounts for routine audits and contract reviews and expanding the scope of audits to include policy areas and budget management tasks.

A county official stated, “Through the operation of the contract review system, we will improve the efficiency of financial management and ensure budget execution that residents can trust through fair and rational cost analysis.”

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