Suwon City Saves 3.4 Billion Won Budget Through Contract Cost Review and More

Gyeonggi Suwon City saved 3.4 billion KRW last year through contract cost reviews and preventive monitoring audits of large-scale projects.

On the 13th, Suwon City announced that it conducted a 'contract cost review' on 276 projects (with a total review amount of 95.2 billion KRW) including construction projects over 200 million KRW and service projects over 70 million KRW commissioned by city and district offices, business sites, and public institutions, resulting in savings of 2.68 billion KRW.

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

Gyeonggi Provincial Government

It was also added that monitoring two large-scale projects saved 720 million KRW in budget.

A Suwon City official stated, "Before project implementation, we prevent budget waste through contract cost reviews, and for ongoing projects, we prevent poor construction through preventive monitoring audits. The previous audit method, which focused on post-detection, had limitations in reversing incorrect outcomes, but the preventive monitoring audit system is expected to significantly resolve these issues."

Suwon City 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.