Gyeonggi Province Saves 2.1 Trillion Won Over 17 Years Through Contract Cost Reviews

Gyeonggi Province has saved more than 2.1 trillion won in its budget over the past 17 years through contract cost reviews.

The contract cost review is a system in which the appropriateness of base amounts and estimated prices is examined prior to bidding or contracting for projects commissioned by local governments. This system prevents unnecessary budget waste and enhances fiscal efficiency.

Since the implementation of the contract review system in August 2008, Gyeonggi Province has reviewed a total of 41,282 bidding and contract cases, not only for the province itself but also for cities, counties, and public institutions, resulting in a total budget saving of 2.1008 trillion won.

During the review process, Gyeonggi Province meticulously checked the application of appropriate materials and processes, adjusted the number of technicians that had been underestimated, and ensured that statutory rates for indirect construction costs such as general administrative expenses and profit were properly applied.

Gyeonggi Provincial Government

An analysis of the savings by institution last year showed that cities and counties accounted for 69% of the total, saving 24.4 billion won across 1,547 cases. Gyeonggi Province saved 5 billion won in 630 cases, while investment and funded institutions saved 5.8 billion won in 391 cases.

Yoo Yongcheol, Director of the Contract Review Division at the Gyeonggi Provincial Audit Committee, stated, "We will continue to do our utmost to prevent unnecessary budget waste and ensure more efficient fiscal operations through rational and substantial contract review management."

Meanwhile, Gyeonggi Province held the 'Contract Review Workshop for Provincial and City/County Officials' on the 3rd and 11th to share the achievements of the contract review system and discuss future directions for improvement.

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