• Korean Journal of Construction Engineering and Management
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• v.22 no.3
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• pp.79-90
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• 2021

In domestic public construction, disputes are increasing due to differences among stakeholders regarding contract price adjustment. In particular, the actual cost-plus fee for overhead costs due to the schedule extension cannot be agreed upon at the administrative phase, and most of them seek judicial judgment. Thus, this study aims to propose a 'sufficiently satisfactory' alternative to reach an agreement before disputes in order to minimize disputes related to the calculation of additional overhead costs. To this end, this study proposes three alternatives based on the rate method. Firstly, when calculating additional overhead costs, it is not calculated as an actual cost-plus-fee method, but as a rate compared to direct labor costs among net direct costs. Secondly, the calculated indirect labor costs are compensated for up to the legal maximum of legal limit costs such as general management costs, profits and so on. Thirdly, it reflects overhead costs increased or decreased due to change orders. Risks were analyzed by collecting expert opinions on the proposed methods and applying actual cases. Finally, as a result of investigating the level of consensus for each stakeholder, it was confirmed that all stakeholders could agree regardless of the size of the company. The result of this study is expected to as a useful tool among stakeholders in the construction fields that can be able to easily agreed upon.

• Korean Journal of Construction Engineering and Management
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• v.21 no.1
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• pp.3-11
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• 2020

In large public construction projects with a certain size or larger that need to be carried out over a number of years, the Authority must secure a budget for construction project management activities by the construction manager. There is no problem if the project management budget secured by the issuing Authority and the project management budget executed by the issuing Authority are the same, but if not, various problems will arise. Therefore, in this study, the following measures were proposed to improve the system for efficient operation of construction project management: First, the construction project management terms and tasks specified in the statutes and the guidelines of government agencies should be unified and the standard for calculating consideration should be unified. Second, the total project cost management guideline should be specified so that the missing construction project manager can receive compensation for the technical proposal. Third, if the project cost is changed in the long-term continuous construction project, the construction project management expense should be adjusted accordingly. Fourth, if construction project management service is required from the Authority, the basis for consignment to a specialized institution should be specified in the total project cost management guideline.

• Land and Housing Review
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• v.14 no.1
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• pp.135-144
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• 2023

LH Corporation uses the construction waste disposal fee standard, of which the model was developed a long time ago. Therefore, this model is problematic because it needs to reflect waste treatment facilities' technological development and environmental conditions. In this study, the estimated manpower and costs required for the process operation of waste treatment facilities were analyzed, followed by the proposed estimation criteria. This improved standard model can be used as a cost calculation standard for the recycling and treatment of construction waste in public institutions. The study also suggests that an increase in waste treatment costs is needed.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.999-1002
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• 2007

Traditionally, the result of engineering projects have an effect on quality, performance and productivity of final products. However, budgeting for domestic engineering project has some unreasons such as cuts without good reason or misinterprets of guideline for estimating engineering services fees by owner in public sector. The objective of this study is to analysis the actual budget of domestic engineering projects. This paper describes about the difference between the criteria and the budget. The results of this study will derive foundation data for improvement of regulation related to engineering fee and the criteria.

• Korean Journal of Construction Engineering and Management
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• v.10 no.5
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• pp.85-94
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• 2009

For the purpose of analysing the capability (knowledge, experience, and ability) of CM at Risk in the major construction company in korea, this study performed questionnaire survey with experts in the companies. Based on the analysis of the survey, the study was found as follows. 1) It is needed to increase the capability of preconstruction services, such as project management plan/manual, contract documents, value engineering, alternative analysis, time management, and claim. 2) Despite of gap of the capability between the present and the future CM services, the study concluded that the capability is sufficient to perform CM at Risk project in the major construction company.

• Korean Journal of Construction Engineering and Management
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• v.22 no.6
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• pp.87-95
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• 2021

This study analyzed economic feasibility using the real options theory of the eco-environment area project in Saemangeum. I defined the main factors affecting project sales during the 30 years operation period. The real option-based analysis is proposed through the managerial flexibility by estimating the volatility of project sales using scenarios analysis method. The number of visitors, admission fee, leisure program fee, and O&M costs required for economic analysis of eco-environment park were analyzed by reviewing cases of similar eco-environment parks in Korea. The option value is calculated by assuming that the developers have an option right that can be abandoned. B/C is less than 1 and NPV is negative, so it is impossible to proceed with the project using the traditional economic analysis. The project value difference between NPV (-46.6 billion Won) and option value (28.1 billion Won) increased by 74.7 billion Won. Through this study, decision-makers of public institutions and private developers who plan eco-environment area projects will be able to use the real option technique proposed in this study.

• Journal of the Korea Institute of Building Construction
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• v.12 no.4
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• pp.401-414
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• 2012

The adoption of Green Frame is expected to provide economic benefits, since construction costs are reduced by the in-situ production of precast concrete column and beam. The cost reduction can ultimately be realized by saving transportation costs and the overhead and profit of PC plants. The cost structure of Green Frame, which is built up using composite precast concrete members, is similar to that of a bearing-wall structure, but the difference in construction process has resulted in some cost differences for a few items. In particular, production and installation is the principal work involved in Green Frame made by precast concrete members, while form and concrete work is the principal work for a bearing-wall structure. As such, the rental time and fee for a tower crane should be compared through time analysis. To verify reliability, this study focused on developed residential projects to estimate the construction costs. Through this analysis, it was found that the costs of Green Frame were 1.57% lower than the costs of bearing-wall structure. The results of this study will help in the development of a management plan for the structural work of Green Frame.

• Korean Journal of Construction Engineering and Management
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• v.7 no.1 s.29
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• pp.168-175
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• 2006

Since the partly changed 'Private Investment Act for Social Infrastructure Projects' set forth in January 2005, the number of BTL(Build-Transfer-Lease) projects offered to the market has rapidly increased. The scope of BTL projects offered covers not only legally defined facilities but several facilities for the private schools. A BTL project, by definition, is a way of project management that includes the entire process of development such as planning, design, construction and operation over the period of 20-30 years. As a result, various types of risk may happen at each stage of the project and it is extremely important to efficiently control the sensitive factors that affect the risk profiles of the project. The examples of the sensitive factors are construction cost, interest rate, discount rate, lease amount, rental fee, O&M cost and so on. This study examines the characteristics of these sensitivity factors, analyzes their impact on the project feasibility and suggests the alternatives to manage them efficiently.

• Korean Journal of Construction Engineering and Management
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• v.7 no.6
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• pp.193-201
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• 2006

The Evaluation system of Excellent Construction Technology has been operated for 15 years from 1990 in Korea. 443 technologies have been certified as Excellent Construction Technology(ECT) and those ECTs are adapted over 20,000 times into the construction projects. As a result of investigation, new technology evaluation system became a stable stage because new technology evaluation system has assigned about 433 and also applied more than 20,000 times in construction sites in 2004. However, it was indicated to a large problem that there aren't still detail criteria of cost assessment for using ECTs. Therefore, we analyzed the status and problems of the cost of using ECTs and suggested some useful ideas which are reviewed by various aspects. Specially we suggested specified criteria for the cost assessment of using ECTs. It is based on the scheduled construction cost and determined the rate $({\bullet}{\cdot})$ of using ECTs. To adapt ECTs into construction projects nationwide not only it is very important to certify better new technologies but also it is required to make the criteria of cost assessment for using ECTs.

• Korean Journal of Construction Engineering and Management
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• v.13 no.1
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• pp.148-159
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• 2012

Recently construction companies' capital condition has been aggravated due to low profit, fierce competition and market contraction. For this reason, the companies rely on public construction projects that protect construction fee by regulations. Despite these regulations, problems regarding progress payment are constantly happening. Also, insufficient analysis on interaction between contractors makes policy making difficult. Thus, in this study, interaction between contractors are quantitatively determined according to delay of application and payment based on current public construction regulations on construction stage. A system dynamics model is used, which analyzes the problems based on an interaction between contractors, and solutions for progress payment application and payment delay are suggested according to the research results.