Naju City Saves 1.18 Billion Won Last Year Through Contract Cost Review

Aerial view of Naju City Hall. Provided by Naju City.

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Naju City in Jeollanam-do announced on the 5th that it saved approximately 1.18 billion won in budget last year through the contract cost review system.

The contract cost review is a system that examines the appropriateness of cost estimates before signing contracts for construction, services, goods, and manufacturing purchases ordered by the city hall and its affiliated institutions. It applies to specialized construction projects over 100 million won, general construction over 200 million won, services over 50 million won, and goods over 10 million won.

Last year, the city conducted contract reviews for 378 projects worth a total of 112.7 billion won, saving 630 million won in construction, 430 million won in services, and 120 million won in goods, totaling 1.18 billion won in city budget savings.

To achieve this, the city has focused on strengthening job competency by conducting employee training sessions in the first and second half of the year and publishing and distributing a casebook on contract reviews, emphasizing proper budget execution and sound financial management.

In particular, the reviews focused not only on simple cost reductions but also on fair and reasonable cost evaluations and preventing poor construction practices.

For large construction sites and projects subject to design changes, the city conducted on-site contract reviews to identify and address field issues through mutual communication, applied various cost review techniques, and adopted construction methods suitable for site conditions to improve construction quality.

Additionally, since last year, as part of proactive measures to stabilize people's livelihoods, the city has been running the "Pay the Right Price and Build Properly" campaign, striving to foster a transparent local construction culture based on appropriate cost estimation.

Going forward, the city plans to continue blocking budget waste in advance to enhance administrative reliability. At the same time, to stabilize livelihoods and revitalize the local construction industry, the city will apply fair prices after reviewing cases where the amount calculated is lower than the standard set in the unit price list, considering on-site and financial conditions.

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