• Korean Journal of Construction Engineering and Management
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• v.17 no.2
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• pp.3-11
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• 2016

CM at Risk has been introduced in Korea to keep up with the global standards of construction management and provide a higher quality of cm service in line with a rapid change of the construction industry recently. However, it is widely considered that more time would required to settle down the system due to a lack of understanding towards CM at Risk, shortage of reliability and low capability to manage and undertake CM at Risk. Therefore, this research is analyzed problems of contract types, open book policies, and contract conditions of 33 numbers of projects undertaken by a bespoke domestic construction management firm in this research. Moreover, this research is suggested a method to establish an open book policy of CM at Risk aiming a better customers satisfaction through staff training, simplifying and improving a payment system, and a way to settle down an open book policy by improving a performance management system on site. It's expected that this research will contribute to a more competitive system with more dominating the market and a differentiation of the service so as clients to rely more on the CM at Risk.

• Environmental and Resource Economics Review
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• v.26 no.1
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• pp.103-121
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• 2017

The domestic ESCO project was introduced in 1992 as one of the energy efficiency improvement programs. In recent energy market, the changes in the market conditions such as smart grid, renewable energy, and the importance of demand response became important issues. As the diversified business models are required, examples of overseas exercises are examined. Business areas in Europe or the US where the ESCO industry has been active include measures to improve the efficiency of energy facilities in all areas, ranging from energy supply facilities and energy services to end users. This type of ESCO overseas business model can be classified into various types such as project execution method, supplier demand management, financing method, climate change and emission rights, new and renewable energy, and other criteria. In this study, we propose to adopt IEC (Integrated Energy Contracting) contract method in domestic ESCO market for additional business models. Current convention of listing the specific individual business types being allowed by regulation turned out to be obstacles to the revitalization of the related market. In order to achieve the goal of energy conservation, it is recommended, instead, to revise the current funding guidelines to be a negative system.

• Korean Journal of Construction Engineering and Management
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• v.14 no.2
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• pp.184-193
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• 2013

Procurement System for Korean construction industry has mainly been controlled by the complicated regulatory system which has been recognized as unflexible and remotely separated from the global standard. This has been identified by many Korean construction experts as one of the main reasons that hamper the Korean construction industry becoming the global leader. One commonly discussed regulatory system is the compulsory multiple contracting system that has been enforced for a long time. According to the Korean governmental contracting law 68-3, all construction projects cannot be divided into separate contracting packages with a few exceptions. Exceptions stated in the law include construction activities related electrical, Information communication, fire-fighting, and cultural assets which all are governed by the separate laws/acts controlled by the different governmental bodies. This research is to closely investigate multiple prime contracting system that has been compulsory in Korean construction industry and to provide policy recommendations to these restrictions. Although, there has been a long history of this compulsory contracting system, this study attempted to provide objective analysis on current status of the system as well as global standard on the issue. This study suggests main considerations when considering different contracting system such as rights of owners, flexibilities of regulatory systems, and efficiencies of conducting a construction project. It is envisioned that recommendations from this study, if accepted by the regulatory bodies, would improve the Korean construction contraction system by making it more compatible with global standard. Moreover, these would help making the Korean industry more effective in terms of regulatory restrictions.

• Journal of Korea Port Economic Association
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• v.35 no.3
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• pp.61-72
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• 2019

In order to enhance the competitiveness of the container shipping industry and promote its development, based on the empirical analyses using multivariate time series models, this study aims to suggest a few strategies related to the dynamics of the container shipping market. It uses the vector autoregressive (VAR) and vector error correction (VEC) models as analytical methodologies. Additionally, it uses the annual trade volumes, fleets, and freight rates as the dataset. According to the empirical results, we can infer that the most exogenous variable, the trade volume, exerted the highest influence on the total dynamics of the container shipping market. Based on these empirical results, this study suggests some implications for ship investment, freight rate forecasting, and the strategies of shipping firms. Concerning ship investment, since the exogenous trade volume variable contributes most to the uncertainty of freight rates, corporate finance can be considered more appropriate for container ship investment than project finance. Concerning the freight rate forecasting, the VAR and VEC models use the past information and the cointegrating regression model assumes future information, and hence the former models are found better than the latter model. Finally, concerning the strategies of shipping firms, this study recommends the use of cycle-linked repayment scheme and services contract.

• Korean Journal of Construction Engineering and Management
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• v.20 no.6
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• pp.98-106
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• 2019

Recently, the number of project delay-related claims and disputes in Korean construction projects has been increasing rapidly. This suggests that the domestic construction contract practice, which has traditionally been superior to the client, is changing into a mutually balanced relationship among the contracting parties. The project delay analysis selects the application method according to the type of schedule approved at the start of the construction and how the schedule management was performed during the construction. The most important prerequisite for project delay analysis is that a complete CPM schedule agreed at the beginning of the construction is prepared and the actual progress of such schedule is well documented. This study is about applying the project delay analysis methodology of a case where a contractor claims damages to a client while constructing a large new private building construction project. In this study, it is determined whether the application of the as-planned analysis method is appropriate to the incomplete CPM schedule and then proposes the as-planned vs. as-built analysis method based on the new standard as an alternative. Next, apply the as-planned vs. as-built analysis method to the schedule in the case project, and then compare it with the result of the as-planned analysis method. The purpose of this study is to suggest a project delay analysis method suitable for the domestic schedule management practices, so that it can be used as a meaningful reference in project delay disputes and litigations of domestic construction projects.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.373-378
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• 2003

Korea's overseas construction industry has been rather depressed by the weakened profitability as well as the sharp decrease of the market shares due to the lack of international competitiveness and the declined international market following the outbreak of Iraq war. There exist a lot of various risks in performing the overseas construction, and especially EPC projects, which entail complicated process from different parts, also require a sophisticated procurement and management skill. Subsequently, to survive in the competitive international market, we need to establish strategies to select potentially profitable projects at the initial stage of bidding process and to mitigate the high degree of risk exposures through contract negotiation and its adjustment. This research provides the profitability evaluation bases, with which overseas construction participants can forecast and analyze the risk more systematically, by eliciting profit-influencing factors from real overseas construction projects and structuring their cause-and-effect relationships. The profitability causal hierarchy structure describes the profitability factors' hierarchy in details and their interrelationships. It also enables us to find out critical factors directly related to profitability aggravation through a qualitative analysis. Ultimately, with this hierarchy structure as the base, the research will suggest how to develop the quantitative profitability forecasting model.

• Korean Journal of Construction Engineering and Management
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• v.7 no.5
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• pp.64-76
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• 2006

Korea's overseas construction industry has been rather depressed by the weakened profitability as well as the sharp decrease of the market shares due to the lack of international competitiveness and the declined international market. There exist a lot of various risks in performing the overseas construction, and especially EPC projects, which entail complicated process from different parts, also require a sophisticated procurement and management skill. Subsequently, to survive in the competitive international market, we need to establish strategies to select potentially profitable projects at the initial stage of bidding process and to mitigate the high degree of risk exposure through contract negotiation and its adjustment. This research discusses the trend of environment in international construction markets. Then, it identifies the key factors that affect the profitability significantly through the structured surveys from 59 actual overseas projects, and it analyzes the key factors by using statistical methods. This research provides the profitability evaluation bases, with which overseas construction participants can forecast and analyze the risk more systematically, by eliciting profit-influencing factors using the result of statistical analysis, literature review and structuring their cause-and-effect relationships. The profitability casual hierarchy structure describes the profitability factors' hierarchy in details and their interrelationships. It also enables us to find out critical factors directly related to profitability aggravation through a qualitative and quantitative analysis. Ultimately, with this hierarchy structure as the base, the research will suggest how to develop the quantitative profitability forecasting model.

• Journal of the Korea Institute of Building Construction
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• v.21 no.5
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• pp.445-457
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• 2021

In previous studies, it was confirmed that through the in-situ production of precast concrete members, costs could be reduced by 14.5-39.4% compared to in-plant production. In particular, it was confirmed that the factory owner did not make a contract if it did not earn more than 20% of the production cost. If precast concrete members are produced in-situ under the same conditions, the quality equivalent to that of factory production can be secured. As it is advantageous in terms of cost and quality, precast concrete members must be produced in-situ. However, it is difficult to produce all quantities in-situ due to time and various other constraints. This is because in-situ production is avoided due to anticipated risks during the project management process. However, if the risk factors are analyzed before performing in-situ production of precast concrete members, it will increase the opportunity for in-situ production. Therefore, this study develops a checklist for evaluating the risk of in-situ production of precast concrete members. By applying the checklist to one case site, it was verified that risk factors can be evaluated easily and quickly. As a result, it was analyzed that sites with a high building coverage ratio are classified as high-risk sites because it is difficult to secure usable area for production and storage. The developed checklist efficiently evaluates the risk factors of in-site production, and makes it possible for the operator to determine the risk factors, which can change frequently during project execution, and respond according to the situation.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.28 no.6D
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• pp.839-847
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• 2008

No proper system exists for private investment projects, and efficient project management is not being achieved due to entanglements of management. Recognizing these circumstances, this paper has diagnosed the hard facts that project management organizations and systems are facing, and presented solutions to the factors that are obstructing the establishment of efficient project management system. This paper carried out focus group interviews on the experts who had participated in the Incheon International Airport Railway construction project, using the methodology of an exploratory case study. The results were systematically analyzed according to organizational behavior and causes corresponding to each of the problems were deduced. Private investment projects were divided into task environments and project organizations based on social science methodology and analyzed, and a final improvement plan for each participating organization was presented. An improvement plan was presented, and it was compared with the case study of Incheon bridge construction project, which is recognized as a model of successful project management, and its appropriateness evaluated.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.26 no.1D
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• pp.115-123
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• 2006

Recently, construction claims have been increased for protecting the rights of construction participants and effectively adjusting the changes under the contract. Thus, the importance of claim management has been emphasized in the construction industry. In domestic construction industry, some claim issues involved in construction activities are often being developed into disputes and even litigations because of the absence of methods or systems for the dispute resolution, and the lack of judicial precedents which can be provided as the references for resolving a particular dispute. In general, the judicial precedents related to the disputes and litigations occurred among construction participants would be extremely valuable in evaluating and analyzing current claims issues. However, such useful information has not been effectively accumulated and utilized in resolving the similar or sometimes identical types of disputes, thus requiring a large amount of additional costs, time and efforts. The primary objective of this study is to propose a web-based decision support system for construction claim management, which enables contractual participants to easily access and use the information of the judicial precedents related to the current construction claims. The decision support system is composed of 'prevention' and 'settlement' modules for avoiding and systematically resolving the construction claims.