Ulsan City Reviews Design Value Engineering... Reducing Budget While Enhancing Facility Value

198 Billion Won Saved in 10 Projects in First Half, 304 Creative Proposals Submitted

Ulsan City achieved a budget reduction of 19.8 billion KRW through Value Engineering (VE) reviews during the first half of this year.

Value Engineering (VE) is a process in which experts review the design completed by the project implementation department to reassess its economic efficiency and feasibility for field application, thereby reducing construction costs and enhancing facility performance.

Since 2009, the city has applied Value Engineering reviews to construction projects by Ulsan City and its districts with a total construction cost of 10 billion KRW or more.

In particular, since July of last year, the scope of VE reviews has been expanded to include construction projects executed by public corporations and agencies, covering all projects with a construction cost of 5 billion KRW or more, in order to further spread the benefits of VE.

As a result, while there were 7 cases with a cost reduction of 12.3 billion KRW in 2022, last year saw 11 cases with 13.7 billion KRW saved, and this year, in just the first half, 10 cases resulted in a budget reduction of 19.8 billion KRW.

Major projects contributing to this year’s savings include: ▲ Construction of the Marine Logistics Integrated Performance Verification Center (800 million KRW), ▲ Onggi Village Landmark Project (2.1 billion KRW), ▲ Ulsan Area Old Sewer Pipeline Maintenance Project (2.3 billion KRW), and ▲ Hoeya Water System Double Pipeline Project (14 billion KRW).

Along with budget savings, 304 creative proposals from experts in various fields were incorporated, resulting in enhanced value for the facilities.

Among the outstanding proposals, the suggestion to change the temporary structure construction method (from H + retaining plate to CIP) for the Ulju Onggi Village Landmark Project was adopted, saving 900 million KRW and ensuring safety by preventing subsidence of adjacent buildings.

An official from Ulsan City stated, “Based on the accumulated operational achievements so far, we will strive to increase the proportion of value-enhancing proposals among creative suggestions, thereby maximizing the effects of Value Engineering reviews through not only budget savings but also improved value and quality of public facilities.”

Ulsan City Hall

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