The average annual public construction projects implemented by the central government from 2012 to 2016 is about NTD 410 billion dollars. At the meantime, an average of 50 billion dollars budget annually is not being used as scheduled, because of execution difficulties such as natural disasters, land acquisition, failure of the bid, etc.; having an important impact on the domestic economy. The annual budget achieving rate is around 83% to 91%, showing that there is still some room for improvement. Additionally, a project must be executed to bring benefits. Execution is a key objective for domestic and foreign governments. A public reform is needed for better implementation of the public construction projects.
The National Development Council developed a “deliberation, early warning, and withdrawal mechanism of the public construction projects” (hereinafter called “early warning mechanism”) to promote the execution power of ministries and to effectively control the timely and good implementation of public construction projects. The Executive Yuan received the early warning mechanism proposal from the National Development Council and officially approved the proposal on December 7th, 2017 which consequently entered into effect as of January 1th, 2018.
Adopting the concept of the life cycle of a public construction project, the early warning mechanism strengthens the deliberative function and requires clear approval to enable better execution of the projects. The screening project indicates a situation and creates a warning to find out the problem and prevent the situation from further deteriorating to the extent of being irretrievable. The withdrawal mechanism is the last resort to redistribute the resources, letting the resources be allocated properly to projects in need. The structure of the early warning mechanism during the life cycle of a public construction project is shown below.
