• Korean Journal of Construction Engineering and Management
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• v.24 no.2
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• pp.79-87
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• 2023

Given that most government contracts are based on a fiscal year, long-term continuing construction contracts require appropriate provisions as significant amounts of budget is supposed to be invested for several years. This study drew problems and improvements of the long-term continuing construction contracts by analyzing the contents of FGI and list of construction order. We found that a number of problems, such as the mismatch between laws and enforcement decrees, difference in calculating overheads due to the extension of construction period, many construction orders that are hard to see as budget efficiency and over investment in the final annual contract, were tangled up in the process. To solve the problems mentioned, we suggested several improvements as follows: (1) effect of total construction period and total amount should be guaranteed by a law, (2) it is suggested that the scope of long-term continuing construction contract is determined by a law, and (3) it should be clear about the calculation of overheads concerned with the extension of construction period as well as the estimation of construction period to prevent over investment in the final contract.

• Korean Journal of Construction Engineering and Management
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• v.20 no.6
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• pp.3-10
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• 2019

The entire duration of the long-term continuous construction contract project cannot be expected when calculating the initial budget as the construction of the contract is carried out annually according to the budget composition. In addition, the statutes related to the defect liability and execution of contracts have not been established systematically in relation to the contract. Therefore, there are many problems at the actual construction site with regard to the defect liability or the performance of the contract in relation to the contract. In this study, the following improvement directions were presented for the efficient operation of the contracts: First, the defect liability is legal and should be specified in an Act rather than an enforcement decree. Second, if the parties to the contract vary in the following order in the contract, the special agreement should be specified in the enforcement decree. Third, in the event of an indirect cost due to the extension of the period of the long-term continuous work, the contingency items of the total project cost management policy should be utilized. Fourth, in the case of general construction contract conditions, clauses related to the purchase of the premium of the CAR, inspection, taking over, defect repair, and defect inspection shall be supplemented.

• 어항어장
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• s.6
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• pp.48-52
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• 1989

• Korean Journal of Construction Engineering and Management
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• v.9 no.3
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• pp.153-163
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• 2008

Domestic construction industry accounts about 15% of Gross Domestic Product(GDP) and Korean government spends approximately 50 trillion won per year for public infrastructure projects. Effective management of public construction projects would result in cost saving and enhance financial stability of the government. In doing so, the government promoted a new budgeting system, Continual Budget Method(CBM) as a part of public project performance enhancement program published in 1999. This research mainly attempted to investigate and analyze the impact of new budgeting in term of cost and schedule performance. Based on the analysis result of n2 projects. The new budgeting system could save project cost by 9.83y. Due to the saving of indirect costs from reduction. Although limited government budget cannot allow all the projects to be excuted with the new budgeting system, the new budgeting system should be more-widely utilized in the public sector because of its proven benefits from this research.

• 월간 기계설비
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• s.318
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• pp.54-55
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• 2017

장기계속건설공사에 있어 수급사업자에 대한 원사업자의 계약이행보증금 중도반환 규정이 신설됐다. 이에 따라, 연차별로 계약의 이행을 완료한 원사업자는 국가 등 공공발주자로부터 계약보증금을 반환받을 수 있는 날부터 30일 이내에 수급사업자에게 연차별 하도급계약이행보증금을 중도에 반환해야 한다.

• 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.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.35 no.6
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• pp.1405-1412
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• 2015

In Korea, public infrastructure projects employ "long term continuation (LTC) contracts," which require budgets to be reevaluated and re-appropriated annually throughout the multi-year life of the project. However, such contracts also make it susceptible to frequently changing government policies, in which budgets required for existing projects are allocated to new projects and thus does not provide a consistent stream of capital to multi-year projects. Each year, the KEC needs to attain government funds for construction of its multiple highway construction sites. Because it is difficult to know the amount that may be actually appropriated to KEC in a given year, it is in turn difficult to anticipate and provide sufficient funds necessary for construction to run smoothly and continuously. The lack of a good logic for appropriation has resulted in projects having a skewed distribution of capital. To get better budget appropriations from the central government, the KEC first needs a systemized approach that rationalizes the annual construction capital optimally required for its individual sites. The goal of this research was to devise a way that allows the KEC to determine and calculate the optimal construction costs that would be required for its individual construction sites on an annual basis. Both the optimal progress rate and the essential work types were assessed through a workshop with 24 professionals (KEC employees and contractors) who had extensive experience in KEC projects and also were currently working in these projects.

• 월간 기계설비
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• s.259
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• pp.48-49
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• 2012

공정거래위원회는 하도급거래에서 서면계약 문화와 공정한 하도급 거래질서의 조기정착을 위해 건설업 표준하도급계약서에 수급사업자의 계약이행 보증부담 경감조항(장기계속공사 연차별 계약 이행 완료 시 이행완료부분에 대한 계약이행보증금 반환)을 신설하는 등 '건설업종 표준하도급계약서'를 대폭 개정해 지난 1월 5일부터 시행에 들어갔다. 이번 표준하도급계약서 개정은 그동안 대한설비건설협회가 수차례 건의한 것으로 공정거래위원회가 의견수렴 및 협의를 거쳐 추진됐다. 공정거래위원회는 원사업자와 수급사업자간의 공정한 하도급거래 질서의 정착을 위해 하도급법 제3조의2에 따라 건설업 표준하도급계약서를 작성 보급하여 사용토록 권장하고 있다. 이 자료는 협회 홈페이지(www.kmcca.or.kr)의 <커뮤니티-협회내공유자료>에서 다운로드 받을 수 있다.