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Busan Metropolitan City Achieves Record Budget Savings of 50.1 Billion Won Since Introduction of Contract Review System

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□ Director General of Audit Committee, Yun Hui-yeon, announced that Busan Metropolitan City saved a total of 50.1 billion won in budget expenditures by operating the pre-contract review system for 1,517 cases last year.

○ In particular, the City reduced costs by 15.7 billion won for the construction of the West Busan Administrative Complex Town, among other savings. In total, it reviewed 1,517 projects worth 1.3247 trillion won and recorded savings of 50.1 billion won with a savings rate of 3.8%. This represents the largest amount of savings since the City introduced the contract review system.

□ The contract review system is a procedure designed to prevent factors that lead to budget waste and to improve the quality of contracted deliverables by reviewing in advance the appropriateness of cost estimates submitted by project departments before project tendering.

○ From 2010 to 2025, the City reviewed a total of 19,297 projects worth 14.6210 trillion won and saved 548.3 billion won in budget expenditures.

□ In addition, rather than limiting efforts to simple unit-price adjustments, the City promoted both budget savings and improved construction quality through the introduction of optimal methods and design improvements tailored to site conditions, including improvements to temporary facility methods and designs, improvements to piping quantity calculation methods, efforts to realize eco-friendly carbon neutrality, and optimization of supervisory service fee calculation methods.

○ [Temporary facility method and design improvements] In large-scale civil engineering works, including the construction of the complex town, the City reviewed earth-retaining and buoyancy anchor methods and adjusted parameters such as the embedment depth of footings, the amount of rebar, and the length of permanent anchors to fit on-site conditions, thereby saving approximately 5.3 billion won in construction costs (8.46%).

○ [Improvements to piping quantity calculation methods] For mechanical equipment, before applying an added rate to the total piping length, the City improved calculations by first excluding the lengths of piping accessories such as elbows and tees from the total quantity and then applying the added rate, thereby correcting excessively calculated material and labor costs.

○ [Realizing eco-friendly carbon neutrality] By using the certification system for unused forest biomass, the City adjusted processes so that waste timber generated during road construction could be disposed of free of charge at power plants and other facilities, saving approximately 390 million won and contributing to carbon neutrality.

○ [Optimization of supervisory service fee calculation methods] By comparatively applying a cost-reimbursable fixed-fee-plus method tailored to project characteristics instead of the customary construction-cost rate method, the City saved approximately 420 million won across six cases, including replacement works for waterfront electrical facilities.

□ The City also strengthened safety-related reviews to help create safe construction sites, including preventing serious accidents, and actively recommended the inclusion of disaster prevention technical guidance fees and occupational safety and health expenses. By increasing safety-related budgets by 3.2 billion won, the City also contributed to securing the quality of projects directly linked to public safety.

□ Park Heong-joon, Mayor of Busan Metropolitan City, stated, “We strengthened the expertise of review work through job training and supported swift budget execution by shortening review periods, and we achieved a savings rate of 3.8%, exceeding the national average savings rate of 2.5%.”

□ He added, “This year as well, we will thoroughly advance contract reviews to prevent budget waste and do our utmost so that the saved budget can be reinvested in expanding convenience facilities for citizens.”