Policy suggestions and lessons learned to increase transparency in public construction projects.

Now I would like to share with you our overall policies and institutional approaches to increase transparency in the public construction sector, and share our experience.

I would like to show you how much citizens know about SMG’s efforts to disclose public construction information systematically, and how citizens are utilizing such information, using several examples. By referring to Allimi, citizens can find details about construction projects underway around their homes, such as information on construction periods and design changes.

Through Allimi, citizens can gain access to contact information that allows them to call project managers and ask questions as well as launch petitions and submit applications to visit construction sites in person.

So far, Allimi has disclosed information on over 2,600 public construction projects in Seoul. This is possible through a real-time link to One-PMIS. Information disclosed can be divided into 14 categories, and includes details such as construction period, implementation status, project scale, progress, contact information of responsible project managers, and penalties imposed.

During 2016, 153,865 citizens visited the Construction Allimi website, and 6,077 visited the mobile version of Construction Allimi.

On June 16, 2016, SMG’s Construction Allimi received a Human Technology Award for the website’s creation of public interest and social value and efficiency in information sharing.

On October 4, 2016, SMG’s Clean Construction System received a Public Sector Excellence Award during the WITSA Global ICT Excellence Awards 2016. The World Information Technology and Services Alliance (WITSA) said SMG’s Clean Construction System is a highly innovative public service combining the construction industry and ICT, and cited the system’s openness, innovation, and integrity as the reason for the award.

According to SMG’s experience, the Clean Construction System has been successfully introduced and is used sufficiently at construction sites. There are four factors behind this success. Let’s review each one now.

First, there was a strong commitment from the top to establish and enforce this system for transparency and efficiency. When existing practices of construction face changes, resistance and opposition are inevitable. Hence the success of the Clean Construction System (CCS) significantly depended on the strength of the commitment by decision-makers at the top.

Second, a user-centered, bottom up approach and public participation through a civic consultation body facilitated system development, realization, and upgrade. SMG has realized that the best solution comes from citizens and users.

Civic society is offering innovative ideas to improve the SMG system through posting of opinions online, on-site visits, and phone calls, and SMG staffs make suggestions through a working-level consultation committee comprising system users of SMG and 25 gu-district offices, For example, the opening of a construction machinery safety management menu on One-PMIS is the result of SMG’s efforts to improve safety on construction sites through consultation, in the wake of two serious accidents in 2013.

Third, the creation of a team and staff exclusively responsible for management of One-PMIS and Construction Allimi ensures more accountability in comprehensive solution development, system introduction and upgrades.

Fourth, continuous reform of SMG’s public administrative system to bring changes in employee attitude and thinking fostered an environment that is open to new policies and systems. Right after taking office, the new mayor of SMG created a division to handle information disclosure to the public. He also introduced what is known as the “Naked Policy Project” that aims to disclose and share everything about SMG’s municipal policies with citizens. As this new policy began, of course, some confusion and problems followed.

As documents approved only a day earlier are disclosed, some employees said, “it feels like going down the street without wearing anything.” However, SMG continued despite these challenges.

As a result, SMG discloses every detail of policy information unless prohibited by law. And that information is accessible in real time to any of Seoul’s 10 million residents through a dedicated website. Now, four years after the implementation of such a policy, Seoul is disclosing even the list of members of the Urban Planning Committee and their discussions.

Now, we will review some major lessons learned from Seoul City’s Clean Construction System in order to identify ways to increase transparency in the public construction sector.

First, standardizing the project and reporting system reduces the risk of corruption. An effective management system based on realistic technology and solutions also reduces the risk of corruption, and helps project stakeholders change their attitude and approach towards a project over time.

And the key to effective elimination of corruption risk is to establish a systematic and standardized electronic process for management of public construction projects. In this regard, we recommend an approach like Seoul City’s Clean Construction System, as a means to enhancing efficiency, transparency, and accountability in management of the public construction sector.

Second, minimizing unnecessary direct contacts between stakeholders is critical to reducing the risk of corruption in the public sector. If documents are written by hand and direct visits are paid for project approval and authorization an inappropriate relationship between subcontractors, supervisors and contractors may build through dinner or other personal meetings. Minimizing unnecessary personal contact between stakeholders is an effective means of eliminating corruption.

Third, providing information on a real-time basis is the key. Construction Allimi provides live information through a real-time automatic link with One-PMIS. Construction Allimi discloses information on project process and reports between ordering institution, contractor(s) and project supervisor.

Fourth, disclosing information to citizens helps establish a culture of accountability in public administration and reduces social conflicts regarding public construction projects. As precise construction information is available to citizens in real time, and project participants know that information is being shared with the public, this can strengthen citizen monitoring of the administrative procedure.

Lastly, continuous system upgrades are as important as initial system development. Continuous system upgrades require budget support for years. Even if it is intensive, a one-time effort to establish a system will not lead to perfection.

As you see in the table, Seoul Metropolitan Government has continued to invest in One-PMIS system optimization and upgrades since system launch in 2011. Securing the funds for years of system maintenance and upgrades is indispensable to building a system like CCS.

Lastly, for our overseas partners wishing to implement systems similar to our One-PMIS and Construction Allimi, I would like to give a few practical words of advice.

First, law enforcement or other forceful means is indispensable. In Korea, there is no law that enforces the use of One-PMIS. Hence, the SMG has introduced a non-legal and institutional approach to foster an “accommodative culture” and establish “guidelines” among stakeholders using One-PMIS.

That is, SMG has made intensive efforts to publicize the rationale and importance of using the One-PMIS to relevant divisions. As a result of these efforts, a consensus was reached among these divisions regarding the use of One-PMIS. At the same time, when posting notices that contractors will be chosen for public construction works, the mandatory use of One-PMIS was inserted as a special condition in the SMG’s public construction contracts.

And I suggest the input of personnel and physical resources for the management and maintenance of One-PMIS and Construction Allimi. First of all, a team of at least six members responsible for system management needs to be created within the government. However, technical maintenance and repairs can be outsourced to private businesses on an annual contract.

Developing a full system with all the functions through a one-time effort is not possible. Therefore, we suggest a system be built up gradually. In the first phase, the system (version 1) aims to disclose information on the overall status of each project in order to enable project participants to monitor them and citizens to access information.

In the second phase, the system (version 2) allows primary contractors to enter major information, manage projects, and report files, having features like PMIS. An internal approval system is linked to Construction Allimi. As a result, information is accessible to project managers and residents. The first and second phase can be reversed in sequence based on your country’s contexts.

Next, to further increase the effectiveness of Construction Allimi , we suggest offline meetings to reach citizens. Although it is important and useful to share public information online, that cannot completely replace the value of face-to-face contacts for information sharing and consultations.

So when SMG starts a construction project, it holds meetings with residents living near the construction site. Public hearings and civic council activities are organized through close cooperation with the 25 gu-district offices in Seoul. As a result, SMG sometimes modifies its business plan after hearing the feedback from residents.

Once a construction project starts, SMG places a banner informing residents of construction period and contact information of the primary contractor, subcontractors, and SMG supervisors near construction sites. Citizens can voice their complaints or send inquiries using this contact information.

Citizens can also send complaints through the “Ask the Director” section on Construction Allimi or on the SMG website or social networking service.

SMG also provides opportunity for residents to make on-site visits before a project is completed. Anyone wishing to participate in a visit can apply on Construction Allimi. 112 persons have participated so far since June 2015.

Lastly, efficiency and transparency in management of public construction projects cannot be enhanced by simply introducing an effective construction system. One should make a variety of other efforts such as -- establishing a system operating infrastructure, training personnel how to use the system, and drawing the participation of citizens and communities through information disclosure.

According to the experience of Seoul Metropolitan Government, a proper combination of efforts towards anti-corruption, information disclosure, and enhancement of attitudes to cultivate a culture intolerant of corruption and appreciative of information disclosure is required.

But we have realized that “People” is the most important. However efficient the system is in place, without a commitment from system users to clean up construction, that system means nothing. Therefore, we need to make steady efforts to raise awareness of the importance of a Clean Construction System. That is the most critical element to increasing efficiency and transparency of public construction project management. So far, I have explained Seoul Metropolitan Government’s experience and lessons to build a Clean Construction System. I hope these policy suggestions and lessons have benefited you as you work to increase transparency in the public construction sector. Thank you.