Seoul City Saves 138.1 Billion Won in Budget Through Construction and Service Contract Reviews Last Year
865 Billion Won Saved in Construction... 62.6% of the Total
Seoul City announced on the 22nd that it saved 138.1 billion KRW in budget last year through unit price adjustments and other measures for construction and service contracts commissioned by Seoul City and autonomous districts.
Over the past year, the city conducted contract reviews for a total of 3.0455 trillion KRW worth of 3,930 cases involving construction, services, and goods procurement, saving the budget through unit price adjustments, design and construction method appropriateness reviews, and more.
Contract review is a system that examines and reviews the appropriateness of cost estimation before contracts for construction, services, and goods procurement commissioned by the city, districts, and local public enterprises. Currently, it is conducted for construction projects over 300 million KRW, services over 200 million KRW, and goods procurement over 20 million KRW.
By type of savings, construction cost reductions amounted to 86.5 billion KRW, accounting for 62.6% of the total, making it the largest. This was followed by goods procurement at 24.9 billion KRW, services at 17.2 billion KRW, and private consignment at 9.5 billion KRW.
During the review process, any underestimation or omissions are corrected by reflecting the appropriate costs and increasing the amount accordingly. Last year, during the comparison of 1,606 construction design drawings and cost statements, 197 cases were found where quantities were omitted or safety management costs were not properly reflected, resulting in an increase of 3.1 billion KRW.
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Not Jealous of Winning the Lottery"... Entire Village Stunned as 200 Million Won Jackpot of Wild Ginseng Cluster Discovered at Jirisan
- [Breaking] Central Labor Relations Commission: "Second Post-Mediation Fails for Samsung Electronics"
- "Looks Even More Like Him in Person": Crowds Gather to See 'Trump Lookalike' Albino Buffalo
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
Kim Jin-man, Director of the Seoul City Finance Bureau, said, "To operate local finances soundly and efficiently, we plan to strengthen the expertise of contract reviews and utilize the saved budget as investment resources for projects necessary to realize a companion and attractive special city, Seoul."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
