Suwon-si Saves 2.1 Billion Won Budget Through Contract Cost Review and More

Suwon City Hall

The city of Suwon in Gyeonggi Province has saved 2.1 billion KRW in its budget through contract cost reviews and preventive monitoring audits of large-scale projects in the first half of this year.

On the 15th, Suwon announced that it conducted 'contract cost reviews' on 150 construction projects each costing over 200 million KRW, commissioned by city and district offices, business sites, and public institutions, saving 1.38 billion KRW. Additionally, it saved 720 million KRW through preventive monitoring audits.

The contract cost review involves examining and verifying the appropriateness of base amounts, estimated prices, and design change amounts for bids and contracts of projects commissioned by local governments. It reviews the adequacy of cost calculations proposed by the ordering departments to prevent budget waste in advance. This system aims to manage finances soundly and efficiently.

The preventive monitoring audit is conducted to identify issues in major projects such as large-scale or policy projects in advance and to prepare timely improvement measures.

A Suwon city official stated, "Before proceeding with facility construction projects, we block budget waste factors through contract cost reviews, and for ongoing projects, we prevent poor construction through preventive monitoring audits. The previous audit method focused on post-detection had limitations as it could not reverse incorrect outcomes, but the preventive monitoring audit system can significantly resolve these issues."

Suwon has been operating the contract cost review system since establishing the 'Suwon City Contract Review Work Processing Rules' in 2011.

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