• Korean Journal of Construction Engineering and Management
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• v.18 no.6
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• pp.109-120
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• 2017

Even though domestic construction companies are expanding into overseas construction markets, the profitability of overseas project are decreasing and finally some biggest domestic construction companies recorded heavy deficit one after another in 2013. Contract management, which is very deeply related to profitability, is the most difficult area to domestic construction companies, especially in Middle East and Asia where they have the highest market share and a high level of contract management is required. The purpose of this study is to assess their contract management competences to help them improve contract management skills and strategies. First, we defined the overseas project contract management process and selected competences from the each process stage. Then, we conducted a survey with overseas project experts. For considering their competences from various angles, we divided survey groups into domestic construction groups and other groups (Contract consultancy agencies and Construction research institutes) to understand the internal and external perspective of the domestic construction companies' contract management competences. The results of survey was analyzed by using paired samples t-test, Borich Needs Assessment Model and Independent t-test. We expected that the results of this study could contributes to establish strategies for enhancing the domestic construction companies' contract management competencies.

• Korean Journal of Construction Engineering and Management
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• v.15 no.3
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• pp.12-22
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• 2014

In recent, many Korean contractors have tried to extend their business area into the overseas construction market, mainly as a result of a reduction in their domestic construction market. However in terms of risk, overseas construction projects are likely to face a number of unpredictable problems, many of which occur as a result of differences in contract cultures and construction environments between Korea and other countries. One key issue facing overseas construction projects in particular, is that of sub-contracting and control, and the way in which many countries of Commonwealth of Nations operate a unique subcontracting method well known as a nominated sub-contractor(NSC). This paper introduces the NSC system and differences as comparing among standard construction contract forms, such as JCT, SIA, HKIA and PAM. in UK and Asian Commonwealth of Nations. Also, we attempt to classify the type of the NSC system through the consideration of NSC clauses in accordance with the objection and termination of NSC contracting respectively.

• Korean Journal of Construction Engineering and Management
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• v.18 no.6
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• pp.65-77
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• 2017

Recently, many Korean major construction companies are suffering from profit loss mainly due to a direct impact from delays in their overseas projects. In general, changes are inevitable in a large-scale project, and most of changes are directly linked to construction delay. Therefore, in the event that an extension of time is necessary due to a change, the contractor must manage the delay based on the condition of the contract to effectively manage risks from delay to the completion date. Thus it is important to understand delay protocol defined in the condition of the contract early in the project, but there have been few or no study to propose methodology or tool to support this effort. This paper presents a review on the project planning and controling practices of major Korean construction companies along with the issues on delay claims and disputes in mega-international projects and suggests a tool to assess delay risk in the condition of the contract. To propose a delay risk assessment model for international construction projects, major standard conditions of contract have been reviewed including FIDIC Red Book(1999), PSSCOC(2014) and SIA 9th Edition(2010). To reflect recent trend of major international owners, standard conditions which they are utilizing for their projects also have been reviewed including those of ARAMCO and QP. The model provides a categories of risks to be reviewed on the condition of the contract along with standard level of the risk which is common in the international standard form of the contracts. This study also performed a case study on an actual international project to confirm the effectiveness of proposed model to identify and respond to a delay risk of a project.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.643-665
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• 2014

We study the optimal policy of the contracual arrangement in raising the debt-to-equity ratio for oil, gas and mining project finance deals. We investigate the impact of the optimal contractual relationship between counterparties on the soundness of projects, differing in output price volatility and country risk. Key findings are: first, the existence of EPC sponsors and off-takers generally raises the debt-to-equity ratio. In particular, EPC sponsors and off-taking sponsors jointly mitigate the credit risk caused by counntry risk. Seocond, off-taking and EPC contracts jointly help mitigate the credit risk caused by the country risk, rather than the price volatility. Indeed, the contractual structure raises the debt-to-equity ratio.

• 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.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2004.11a
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• pp.95-100
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• 2004

본 논문은 도로 건설 공사 프로젝트들의 전 공정에 걸쳐 수행되는 모든 작업들을 대상으로 총 프로젝트 생산성 (Total Project Productivity)을 측정하고 분석하기 위한 방법을 소개한다. 측정 방법의 주안점은 복합적으로 병행되는 작업들의 생산량을 통합하여, 프로젝트 전체에 대한 포괄적인 생산성 값들을 구하는 방법을 개발하는데 두고 있다. 이 방법을 통해 Florida Department of Transportation (FDOT)로부터 발주된 세 개의 실제 고속도로 건설 공사 프로젝트들로부터 수천 개의 총 프로젝트 생산성 데이터 값들이 얻어졌으며. 이를 바탕으로 프로젝트 생산성을 분석하기 위한 방법의 타당성 검증이 이루어졌다. 그 결과로, 프로젝트 레벨에서의 총 생산성은 건설 작업들에 관한 현장 자료를 바탕으로 측정과 분석이 이루어질 수 있음이 입증되었다.

• Korean Journal of Construction Engineering and Management
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• v.25 no.4
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• pp.34-44
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• 2024

In defense and military facility projects, adjustments to contract amounts due to design changes directly or indirectly affect factors such as increased construction costs and extended construction periods. Moreover, they can lead to differences of opinion and conflicts between the military and contracting parties. This case study analyzed the integrated management of defense and military facility projects by the Gyeonggi Southern Facilities Division, which oversees projects in Seoul and the southern Gyeonggi Province region for the Army, Navy, Marine Corps, and Air Force. Out of 388 completed projects, 103 cases with design changes were selected for analysis, aiming to ensure the reliability of data regarding the proportion of design changes in project completion. The study classified samples by the causes of design changes specified in the Ministry of Planning and Finance's contract regulations, assigning rankings based on the occurrence rates of each cause. Furthermore, it analyzed detailed factors for each cause of design change and derived implications to propose improvement measures. Considering the limited access to military primary data, this case study is expected to contribute to minimizing design changes in defense and military facility projects. Additionally, it is anticipated to be practically useful for subsequent research on contract amount adjustments resulting from design changes.

• Annual Conference of KIPS
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• 2011.04a
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• pp.329-332
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• 2011

최근 클라우드 컴퓨팅 기반의 IT 서비스가 증가하면서 기업들 사이에 SLA가 중요한 화두로 대두되고 있다. 상업용 SLA 관리 툴들은 어플리케이션 또는 데이터베이스 계층에 계약관련 로직을 내장하고 있다. SLA 규칙들이 구현 로직 내에 암시적으로 표현되어 있어서 유지보수가 어렵고 계약사항을 공유하는 데 많은 어려움이 따른다. 따라서 오늘날과 같은 서비스 지향 아키텍처, 온 디맨드, 유틸리티컴퓨팅, 클라우드 컴퓨팅 환경에서는 전체 서비스를 자동 관리할 수 있는 기술에 대한 연구가 반드시 필요하다. 본 논문에서는 능동문서기반의 ASLM(Active Service Level Management)과 유럽에서 진행 중인 SLA@SOI 프로젝트의 계약서 작성 및 실행에 대한 구현 방법을 비교하였다. 비교결과 유지보수성과 자동화 측면을 고려할 때 계약 규칙 로직을 어플리케이션 로직과 분리한 ASLM의 구현방법이 SLA@SOI 보다 SLA 계약처리 업무에 적합함을 알 수 있었다.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2004.05a
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• pp.113-117
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• 2004

We need the contingency cost in order to deal with the uncertainty to be accompanied inevitably at the construction and an every kind risk not to forecast in advance. And also the contingency colt needed for the change order and we need it for reduction of the delay and reduce the trouble between owner and constructor. This study, through checking and analyzing the risk factor, in the step of domestic construction, suggests optimal management reserve to specific business about the contract type and the scale. The main results of this research are summarized as follow. First, I investigated the recognition about the contingency cost, grasped the risk to be happened at the construction step and found out the frequency occurrence, through making up question to engineer are carrying out their job in the domestic construction. Second, I computed optimal contingency cost rate by the statistics investigation, and proposed an improvement plan and problem when compute a contingency cost.

• Korean Journal of Construction Engineering and Management
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• v.4 no.3 s.15
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• pp.67-75
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• 2003

The small construction projects under $\\5$ billion occupy 90$\%$ of Korea construction industry. Because of the lack of the right recognition and management tool for the small construction projects, it is difficult to carry out successfully. This study recognized the present status of the domestic small construction industry through the questionnaire with experts. By the analysis of the questionnaire, this study finds items such as the management methods and the success factor about the small projects. Also the study suggests the conceptual framework that the construction party could manage the small project effectively.