• International conference on construction engineering and project management
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• 2005.10a
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• pp.908-912
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• 2005

Construction Cost Indices are values for measuring fluctuations in direct construction costs which include material costs, labor costs, and equipment costs for construction operations. In Korea, Korea Institute of Construction Technology (KICT) has been assessing and announcing these indices since January, 2004. The main goals of this paper are to look over the calculation process for those indices and then present the trend in construction costs according to the types of facilities with the past construction cost index data. Also, this paper traces the origin of the occurrence of significant changes on those indices through the further analysis of the trend. In addition, this paper shows the practicality of the indices and the way how to put them to practical use. An alternative estimate method using the indices is suggested for compensating the changes of construction costs caused by price fluctuations.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.184-189
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• 2009

In 2008 the total estimated failure costs in the Netherlands was estimated to be 11.4% of the industry's turnover compared to 7.7% seven years earlier. Failure costs can be the consequence of rework as a result of failure to conform to the product requirements and specifications or due to inefficient processes and bad management practices. Many construction companies however are unaware of the exact nature of these costs, their root causes or how to control them. This paper describes work carried out in the Netherlands to identify the different types of failure costs in construction and their root causes. The research described builds on previous findings by another research institution and expands it to include information collected from project cases and a survey of a number of project managers in the construction industry. The paper describes the analysis of the results from cases and the survey to identify the root causes of failure costs. Research shows, for example, that many failure costs are related to the client taking late decisions and making changes to the project requirements.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.437-446
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• 2005

Recently as people's values are changing from development phase into running stage after quality of life, so that the needs of environmentally friendly construction are gradually increasing. Also populace discontent about the pollution during construction process such as the noise and vibration caused by construction machinery is increasing. Even though it is impossible to eliminate the construction pollution fully, it is necessary to make efforts to reduce construction pollution to a minimum. In terms of construction site operating, the first possible step for solving these matters directly is that the necessary sum of expenses must be secured as the environmental management costs in the conceptual phase. However, in fact, the environmental management costs have not been secured in the budget. Generally it is the major reason not arising proper activities to prevent the pollution in the construction site. The purpose of this research is to suggest the efficient budgeting method regarding Environmental management costs to ensure the necessary sum of environmental management expenses. To provide an efficient budgeting method, interviews with the person in charge of environment management was conducted. 78 construction sites was surveyed and environmental management costs were analyzed through their historical data from the survey. According to the results of analysis, the ratio of environmental management costs is revealed 0.45% of construction cost as average comparing 0.2% of legal limit. And usually the environmental management cost was appropriated into the safety management budget. So it is needed to isolate environmental management budget securely and modify the ratio of Environmental conservation Costs in Construction Technology Management Act.

• Journal of The Korea Institute of Healthcare Architecture
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• v.27 no.2
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• pp.7-14
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• 2021

Purpose: The purpose of this study is to provide an effective construction project cost estimation tool for preparing a business plan of healthcare facilities which can be practically used for development projects. Methods: In order to provide a tool for calculating construction project costs, this study analyzed the Building and Related Laws, the Building Technology Promotion Laws, the Ministry of Land, Infrastructure and Transport notifications and directives, the Ministry of Trade, Industry and Energy notifications, the detailed guidelines of the Ministry of Strategy and Finance, the Building Service Industry Promotion Acts, various certification standards, actual project budget calculation cases, etc. with advices from related experts. Results: 1) Construction cost is classified into construction costs, architectural design costs, supervision costs, incidental costs, and each sub-element. In particular, since there are many incidental cost items, essential items to be reviewed during planning are derived and costs are calculated according to appropriate consideration criteria. 2) Criteria for Payment calculation mainly applies the construction cost rate method or the actual cost fixed amount method in consideration of the characteristics and scope of work. Implications: There are many calculation factors that need to be applied to the construction project cost. Therefore, it is necessary to organize the calculation process more clearly.

• Korean Institute of Interior Design Journal
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• v.26 no.3
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• pp.113-120
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• 2017

As the functions and roles of public libraries expand, it is time for qualitative growth. In order to improve the quality of public libraries, it is important to plan actual construction costs through systematic feasibility study. Therefore, the purpose of this study is to present the guideline of construction costs considering the size and regional characteristics according to the status role of the new public libraries. The construction costs are based on actual data. The results of the study are as follows. First, we derived the analysis framework according to the size and regional characteristics. The status role of the public libraries was considered theoretically. The size was classified according to status role of the public libraries. Regional characteristics were classified through literature review. Through this, an analysis framework was derived according to size and region. Second, the actual data on construction costs of the new public libraries were examined and analyzed. Basic factors, size, area, and construction costs were analyzed for 285 libraries nationwide that opened from 2010 to 2016. The data of 129 newly opened public libraries were classified. To present construction costs depending on price fluctuation, construction cost index was analyzed as of September 2016. Third, a guideline of construction costs for new public libraries was suggested. The construction cost per $1m^2$ of building area was analyzed. By multiplying 116.70(p), the construction cost index, the construction cost per $1m^2$ of total building area was calculated to be 2,472,350 won. When applying the research result, construction costs can be gained by adding construction cost index of the month.

• Journal of the Korean Institute of Educational Facilities
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• v.24 no.6
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• pp.3-10
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• 2017

The efforts for sustainable development in building construction is widely applied by global organizations, governments, etc. However, according to the researchers, if the green rating systems on the building, it is reported that construction costs and durations are increased compared to conventional buildings. In this respect, the objective of this study is to identify the construction costs between LEED and non-LEED buildings. The scope of this study is limited in 21 university buildings of Canada. The methodology is as follows: First, the data of LEED and non-LEED buildings are collected in every university building. Second, the average construction costs per square meter is collected and normality check is conducted. Third, to identify statistical significance, the difference of average construction costs is analyzed by using T-test. As a result, it is concluded that the construction costs of LEED buildings are increased by approximately 3.8% more than non-LEED buildings. In the future, the results of this study can be applied to analyzing the additional costs according to the LEED grade in educational buildings.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2017.05a
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• pp.262-263
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• 2017

Currently, the environmental certification such as BREEAM and LEED has been improved for the sustainable development and related research is conducted continuously. Especially, in the respect of economy, it is reported that the construction costs of the certified buildings are more increased than non-certified buildings. However, the report has not focused on the educational building but the residential and commercial buildings. Therefore, the objective of this study is to analyze the difference of construction costs between LEED and Non-LEED educational buildings. To achieve the objective, the buildings data are collected in 21 universities then T-test is used for examining the construction costs. As a result, it shows that the construction costs of LEED buildings are increased by 3.8% comparing with non-LEED buildings.

• Journal of KIBIM
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• v.12 no.2
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• pp.40-48
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• 2022

It is very important to accurately predict construction costs in the early stages of the construction project. However, it is difficult to accurately predict construction costs with limited information from the initial stage. In recent years, with the development of machine learning technology, it has become possible to predict construction costs more accurately than before only with schematic construction characteristics. Based on machine learning technology, this study aims to analyze plans to more accurately predict construction costs by using only the factors influencing construction costs. To the end of this study, the effect of the error rate according to the activation function and the node configuration of the hidden layer was analyzed.

• Korean Journal of Construction Engineering and Management
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• v.23 no.3
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• pp.25-35
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• 2022

The purpose of this study is to derive risk events that occurred during aircraft runway construction and analyze loss costs for project participants. For this purpose, design change data, contracted statement and completed statement were investigated. The results of this study are as follows: There were 12 risk events in the process of construction, 5 design errors and 7 construction errors. The increased construction costs due to such risk events were calculated as KRW 726 million. Of the KRW 726 million that was increased due to risk events, about 52.57% was spent by the ordering agency, and about 47.43% contractors. The increased construction costs due to such risk events are about 4.86% of the direct construction costs of KRW 14.9 billion. Based on the results derived from these case studies, a method for estimating reserve costs and construction costs considering risk events is presented.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2023.05a
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• pp.347-348
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• 2023

In construction sites, small-scale construction quantities or limited work hours below the daily work volume may occur due to on-site conditions. For small-scale quantities, the input of equipment and labor is designed based on an hourly basis in the invoice, resulting in a difference from the actual cost. In this study, we aim to explore solutions from the perspective of construction cost standards to secure appropriate construction costs for small-scale and time-limited construction sites. Firstly, to preserve the basic construction costs on-site, we established standards where half the cost would be charged for construction quantities below four hours and a full day's cost would be designed for construction quantities between four to eight hours. Additionally, realistic construction cost calculation standards are expected to be provided by realizing a surcharge rate for work hour limitations to secure appropriate construction costs.