The government is seeking input from industry experts to improve the 'Total Project Cost Management System,' which oversees the management of total project costs for large-scale projects.
On July 24, the Ministry of Strategy and Finance held a 'Total Project Cost Management System Improvement Meeting' at the Korea Fiscal Information Service. This system is designed to adjust and manage the total project costs of large-scale projects funded by the national budget and funds to enhance the efficiency of fiscal expenditures.
During the meeting, participants discussed practical challenges arising from discrepancies between the total project cost management system and actual execution on the ground. Suggestions for reform, including the need to increase the number of items that can be autonomously adjusted when project timelines are extended or tasks change, were also raised.
The Ministry plans to develop an improved 'Total Project Cost Management Guidelines' later this year, taking into account the discussions held during the meeting and consulting with relevant agencies.
Jeong Hyang-woo, the Social Budget Review Officer at the Ministry, stated, "The Total Project Cost Management System is the budget system most closely related to the field. We will pursue practical and effective improvements that ensure fiscal efficiency while harmonizing with on-site conditions. To achieve this, we will maintain ongoing communication with the construction industry and academia to establish a rational total project cost management framework."
Meanwhile, the government has been continuously working to improve the total project cost management system. Last year, it relaxed the cost segregation for different types of projects, such as technology proposal projects, and revised the total project cost management guidelines to reflect on-site suggestions. This led to changes, including the addition of actual construction management units to the calculation of supervision costs for large construction sites.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.