Public Procurement Service, final notification of Daejeon Medical Center construction project cost of KRW 143.7 billion

Final notification of design adequacy review to Public Procurement Service... City: “There is room for increase and adjustment during the consultation process”

(Daejeon = Yonhap News) Reporter Jae-rim Lee = Daejeon City announced on the 18th that it had been notified of approximately 143.7 billion won as the appropriate construction cost through the Public Procurement Service's design adequacy review for the Daejeon Medical Center construction project.

This amount exceeds the size (equivalent to 81.6 billion won) at the time of the original budget allocation plan. It is somewhat smaller than the adequacy review request submitted to the Public Procurement Service (equivalent to 159.5 billion won), reflecting price fluctuations and site conditions.

Based on the basic design performance, the city is conducting a step-by-step review of design adequacy by calculating design details for each type of construction, reviewing construction cost reduction measures, and prior consultation on the total project cost.

The city is giving a positive evaluation to the Public Procurement Service's decision to accept to some extent the actual ordering conditions due to the recent increase in construction costs and the advancement of hospital facilities.

The city believes there is room to adjust the total project cost by about 50 billion won. Among these, the city analyzed that if factors such as price fluctuations and changes in site conditions, which are separately recognized under the total project cost management standards, are excluded, the actual size of the project adjustment is approximately KRW 25.3 billion.

As this does not exceed the increase management range (within 15% of the existing project cost) applied according to the current total project cost management standards, the city predicted that it would increase the feasibility of carrying out the project during the total project cost consultation process.

A city official said, "The results of this review are meaningful in that they objectively confirmed the level of construction costs that can actually be ordered," and added, "We will secure a stable project cost through consultation on the total project cost and strengthen project management so that the design, order, and construction stages can continue continuously in the future."

Daejeon Medical Center is a key public infrastructure project to expand the local public medical infrastructure. Unlike general public buildings, it is a special facility with a high proportion of medical equipment, machinery, electricity, and communication facilities, and with a high possibility of design adjustment according to changes in operation plans.

Daejeon Medical Center will be built in the area of ​​11 Yongun-dong, Dong-gu, across from Daejeon University (building area of ​​34,500㎡).