• Korean Journal of Construction Engineering and Management
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• v.19 no.4
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• pp.61-69
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• 2018

Research on additional indirect cost due to construction period extension in general contracts has continuously been active whereas the same for the subcontract operations has not been. In this research, we review previous research on evaluation methods for additional indirect costs which are widely being used on construction sites as well as previously proposed methods altogether, applying them to analyze model-cases for comparison. We acknowledge that this pattern for construction cost fluctuation over the construction period demonstrates an S-curve. This S-curve shaped indirect cost occurrence is then used to generate model-cases that are used throughout the research which models we applied previous evaluation methods on. Finally in pursuit of finding out some problems of evaluation methods, we came to derive a conclusion that the "Average Actual Cost Evaluation Method on Extended Duration," which, in turn, were proved to be valid for application on general contracts, was also valid for general application on subcontractor operations.

• Korean Journal of Construction Engineering and Management
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• v.8 no.3
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• pp.125-133
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• 2007

If project time extension were required in the construction projects, either liquidated damages or extension costs should be applied according to causation of the schedule delays. However, in actual cases it is not applied so far according to the contract conditions. The reason why this situation happened Is that function of the present planning and scheduling is not working feasibly. The CPM schedule could not provide a proper solution for apportioning responsibility for the schedule delays. This situation could be considered as breach of contract and will cause potential disputes for schedule delay. Therefore, in this research process based contract administration model for construction delay claim is proposed to prevent schedule delay and solve the claims. The model is based on pro-active management for causation of delay to provide apportionment of responsibility and written evidences.

• Korean Journal of Construction Engineering and Management
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• v.13 no.6
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• pp.33-44
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• 2012

This study is as to payment improvement method of additional incidental cost to be occurred upon extension of public construction time. According to the result of analysis about the cause of non-payment of additional incidental cost of construction time extension through site examples, it was found that difficulties exist in disputes & proofing over the scope of actual cost recognition, and in this regard the result of experts opinion indicated that a construction extension pre-agreement system can be executed which agrees the scope of recognition of additional incidental cost of construction time extension once the statistical standard is clear and accurate. Accordingly, in this study, by totalling multiple sites data, calculations were implemented in terms of type of construction projects, amount of constructions, period of constructions. According to the result of calculation, the element of type of construction project and construction period appears to have none direct effect to the occurrence of additional cost of construction time extension, but direct relationship was indicated related to the contract amount element. In view of above, in this study a standard additional incidental cost of construction time extension was proposed, and presented a system improvement plan to implement the construction extension pre-agreement system.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.60-67
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• 2007

Cases of the time extension have continuously transpired in the public construction projects. The potential of economical loss and claims is increased because the concerned parties such as an owner or a contractor have not properly performed their own responsibility for the time extension. Therefore, this paper aimed to improvement of apportioning responsibility for the time extension in construction projects.

• Korean Journal of Construction Engineering and Management
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• v.8 no.1 s.35
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• pp.78-86
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• 2007

Top priority to manage construction projects is given to the planning and scheduling in order to keep the project duration, which is one of the most important factors in construction management. However, recently most of public construction projects especially for civil projects are delays and preventive research, many efforts were made concerning construction delays and preventive management methods. But analysis of delay causation, which is a main key to solve the problems is not done, yet. Therefore, in this research causation delays are analyzed by characteristics of construction projects, which are type of projects, type of contracts, project participants, and general condition. As a result of the analysis, delay causation are proved to be different by characteristics of the projects. The research results will be used for prevention of time extension and dispute resolution.

• Korean Journal of Construction Engineering and Management
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• v.20 no.4
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• pp.104-113
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• 2019

Construction dispute about Extension of Time are complexly intertwined with various issues. The duration delay analysis defines the impact the issue has on the duration variation. And The international court and the arbitrator use the results of the analysis as a basis for reasonable duration judging. However, most of the domestic Construction sites have not established a business process for Extension of Time litigation. Therefore, Analysis data are collected after the occurrence of the dispute, there is not enough basic data of analysis almost. This study sought to improve the management efficiency by organizing information requirement for delay analysis and suggesting a reasonable business process. As a result of applying the proposed process to actual construction duration extension disputes, about 33% of practitioners, 46% of contractors, and 48% of legal advisors were satisfied with the process application site And Matrix validation was 91% identical. This study suggests that it is possible to increase the efficiency of the construction duration analysis work used as a basis in the construction dispute. Finally, the Computer based system design for this process should continue in the future.

• Korean Journal of Construction Engineering and Management
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• v.18 no.2
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• pp.30-37
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• 2017

In Korea, additional indirect costs generated from the time period extension of public construction projects have been studied. Practical claims against such costs are increasing. There are no clear criteria for calculating the delay cost caused by the extension, and thus calculation methods differ across entities. Logical valid calculation methods have also not been researched. Further, there are no Korean studies on the additional indirect cost caused by a suspension in a public construction project on a long-term continuing contract. The purpose of this research is to propose a method of calculating the indirect cost incurred by construction time extension that reflects the characteristics of Korean public construction projects. The cost patterns generated during construction periods were analyzed, and then the current criteria of calculating the indirect costs caused by the extension were examined. Following this, actual conditions and practices in the field were surveyed and the current calculation method was applied to a model case to compare the actual cost and that determined from the current calculation method. Issues with the current method were identified by this comparison. Based on this, this research proposes a method of calculating the total actual cost caused by a suspension in a public construction project that is appropriate for calculating the additional indirect cost generated by a suspension in a public construction project on a long-term continuing contract.

• Korean Journal of Construction Engineering and Management
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• v.19 no.5
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• pp.111-120
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• 2018

Recently, Domestic public construction projects are experiencing a great deal of disputes because of the growing uncertainty about the criteria for calculating the prolongation cost. In addition, researchers have been studying various systems and proper cost estimates in an effort to reduce the uncertainty of these systems and the occurrence of disputes. However, there is no standard yet for social consensus. Meanwhile, The study on the classification system according to the recognition standard of accounting has been systematically studied. As a result, the concepts of accrual and cash basis are defined separately. The purpose of this study is to verify the possibility of applying the concept of 'accrual basis' to the Standard for calculation of prolongation cost. Therefore, As a result of analyzing the occurrence pattern of Job-site overhead cost, it is confirmed that actual costs can not be calculated by the cash-basis method. In particular, the implications of the necessity of the accrual-basis method should be more strictly indicated in the case of items such as indirect labor costs and welfare benefits. In addition, the contractor 's claim report and the appraisal report were examined. As a result, it was confirmed that the calculation situations of prolongation costs are biased to the cash-basis method. In this way, it is suggested that necessary to supplement the calculation standard of the actual costs from the point of view of accrual basis.

• Korean Journal of Construction Engineering and Management
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• v.6 no.3 s.25
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• pp.81-89
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• 2005

Delay schedule coming about duration extension is happening essentially because public construction project consist of many sub contractor. The method which can calculate delay day is suggested by many studies in case of happing delay schedule, but It is difficult to apply to real construction project because there is no mention about the control of The law of contract according to delay schedule. The law of Contract which is cost of account has more uncertain problem than FIDIC condition of contract. This study suggests method which can make extension of duration procedure clear in case of happing the reason of design change related with activity duration during carrying on construction, and a submission process of the reason of duration extension and modify schedule making way about section which is basis of calculating contract amount clear.

• Korean Journal of Construction Engineering and Management
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• v.17 no.4
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• pp.95-102
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• 2016

Recently, a research regarding calculation of construction time extension-oriented incidental costs has been intensively suggested in quantitative aspect and recent studies on system improvement has been made continuously. In the case of Domestic Public Construction Works, State Contract Act is applied when the client is government whereas Local Government Contract Act is done when the client is local government, but more meticulous study is required because improvement plan is not proposed even there is a clear demand for improvement of these problems on calculation standard. Thus this study suggested appropriate standard by comparing each the calculation standards followed by 'State Contract Act' and 'Local Government Contract Act', considering the problems accorded, and analyzing field cases. Calculation method of other expenses was differently regulated as the revision of each regulation, and this demonstrates that there is a difference of actual cost from 12.37% to 24.95%. It is shown that less cost of construction time were calculated than actual cost according to a problem of calculation method by State Contract Act as the rate at the time of contract to be applied in other expense rate. This study suggested the rate against incidental cost and the rate of other expense per day against total construction cost as an appropriate rate calculation for other expense based on field database.