Seoul city cuts budget by 138.1 billion won due to contract review

The city of Seoul announced on the 22nd that it conducted a review worth 3.4555 trillion won (approximately 380 billion yen) through its contract review system last year, resulting in a budget reduction of 138.1 billion won (approximately 15.2 billion yen).
. Contract review is a system that examines and examines the appropriateness of cost calculations for construction, utilities, goods purchases, etc. ordered by cities, wards, and local public corporations before entering into a contract. Last year's reduction rate reached 4%.
The system is currently examining contracts for construction costs of 300 million won or more, utilities of 200 million won or more, and goods purchases of 20 million won or more. Contract reviews are about more than just budget cuts.
It also plays a role in early detection of projects where there is a shortage of materials or human resources, and prevents safety accidents. Last year's contract review showed that construction costs were reduced by 86.5 billion won, or 62.6% of the total.
occupied. This was followed by goods purchases at 24.9 billion won (18.1%), utilities at 17.2 billion won (12.4%), and private outsourcing at 9.5 billion won (6.9%). As a specific example, hospital A
In connection with mechanical construction for expansions and renovations, the unit price of 193 types of materials was adjusted, resulting in a savings of 640 million won, equivalent to 6.8% of the total construction cost. For transporting earth and sand during local river maintenance work
Approximately 700 million won was saved by applying standard market prices and reducing the area of the on-site office to an appropriate size. On the other hand, in the case of erroneously undercalculating or missing parts during the appraisal process, the appropriate cost will be reflected.
The amount was increased reasonably. Last year, in the process of comparing 1,605 construction design drawings and calculation statements, we discovered 197 cases where quantities were insufficient or safety management costs were not properly reflected, resulting in a total of 3.1 billion yen.
increased the amount of Won. Kim Jin-man, director of the Seoul Metropolitan Government's Finance Bureau, said, ``In order to manage local finances soundly and efficiently, it is important to strengthen the expertise in contract review.
"We will use this as a necessary source of business investment funds to make the city an attractive city."