• International conference on construction engineering and project management
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• 2015.10a
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• pp.629-630
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• 2015

'Sabine Pass Liquefaction Project (SPL Project)', a case study in this report, is the first construction project of a U.S. liquefaction facility for shale gas export overseas. This study analyzes the SPL Project to give understanding and a guideline to Korean EPC companies by benchmarking about effective risk-sharing strategies on EPC contracts. This study consists of three parts. The first summarizes the liquefaction process adopted on the SPL Project, named the 'ConocoPhillips Optimized Cascade Process', and compares it with other competitive liquefaction processes. The second introduces the unique features of the SPL EPC contract by comparing it with two other EPC forms of contracts: a FIDIC Silver Book for onshore plant projects and a contract of an offshore oil production (FPSO) project. The third focuses on the complexity of project financing (PF), especially lenders control and impact on the EPC contract such as covenant provisions to constrain variations and changes on the EPC Contract. From these conclusions, it is anticipated that this case study can provide a guideline for successful performance of Korean EPC contractors overseas.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.144-152
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• 2009

Construction contracts involve the allocation or distribution of the risks inherent to a construction project between or among contracting parties. However, it has been a common practice that only one party drafts the contract due to practical reasons and particular policies of various organizations. Interviews were conducted on some local contractors to gain their meaningful insights and standpoints on the allocation of each risk. These results were compared with the actual risk allocation using the Philippine government standard contract and risk principles from the literature to determine if their considered opinions provide a plausible alternative. A sample application of this evaluation is presented for construction-related risks and risk allocation recommendations are provided in the end.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2015.05a
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• pp.209-210
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• 2015

Since CM policies established in 1996, contracts of CM services are continuously increasing over the past years. As constant improvement of positive awareness about public/private owners and CM capabilities of domestic construction companies, a number of efforts were being made to acquire competitiveness of domestic and overseas CM market. However, there has been lack of quantitative and comprehensive research to investigate CM firms. The purpose of this research is to statistically analyze total of 2,983 CM service contracts over the past 16 years published in KISCON (Knowledge Information System of Construction Industry) in order to examine CM owner type.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2009.11a
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• pp.257-260
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• 2009

With the current global financial crisis, Korea's economic situation involves a great deal of uncertainty. As the construction industry in Korea has traditionally been one of the country's strongest engines of economic development, it is crucial to understand its current status when establishing government policy or corporate goals. Utilizing a variety of statistical data related to construction that has been published in Korea, this study analyzes the current status and performance of the industry in terms of technological development. Although it was found that the construction industry in Korea is currently unstable due to the influence of the global financial crisis, it is now expected to recover quickly thanks to the increase in the number of construction contracts in foreign countries. In addition, when the performance of national research and development is realized, it is expected that new construction technologies will contribute to the recovery of the Korean construction industry. Despite the benefits of construction contracts in foreign countries, there are harmful practices in the industry that need to be addressed, including the excessively fierce competition among domestic construction companies.

• Journal of Arbitration Studies
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• v.16 no.2
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• pp.239-264
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• 2006

Globalization of business activities and the market is making intern ational movement of capital much freer. Therefore the introduction of global standard is inevitable. Each and every country has had its own standard which restrain free exchange and cause misunderstanding and conflict between countries. A country or a company which is not capable of meeting the global standard can not be accepted in the global market. Consequently, it will eventually be left behind. It is right to say that countries and companies should accept the global standard and abide by it to survive in the competitive global market. The following preface which was introduced in the international conference co_organised by BAC, FTCTC and Tsinghua University in May, 2004 shows a timely movement for the globalization of construction business. *B A C, Beijing Arbitration Commission *FTCTC, The FIDIC-Tsinghua-CNAEC Training Center *CNAEC, China National Association of Engineering Consultants Introduction, As arbitration becomes more and more popular in the ways of alternative disputes resolution all over the world, the BAC is devoted to promoting international arbitration in China. As FIDIC contracts constitute an accepted point of reference for international construction contract, the BAC, characteristic of construction projects, is willing to facilitate the FIDIC contracts as the referred construction contracts in China. In order to carry out its purposes, the BAC, together with FTCTC is going to convene for discussion of dispute resolution and arbitration of international construction projects. FIDIC, construction contract management guide, explains arbitration as the ultimate dispute resolution method. The detail of FIDIC will be suggested in this essay.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.483-486
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• 2007

In 1997, after Construction Management was introduced, it has been ten years; moreover, there has been many thesis until recently. However, in the past thesis, studies of Construction Management were limited to the public and standards for an activation were not certain. So, in this study, using Public Announcement of CM Ability Valuation, we analyzed the market of the domestic CM in the aspect of the number of contracts and the sum of money. The number of domestic construction contracts has decreased since 2002. In contrast with the number, the sum of money has increased. And the market of CM has been extended. However, the occupancy rate of the contract money was low in contrast with the number of contracts. But comparing with the growth rate of economy and Construction market, that of the CM market has been extending. Through this study, we decided that the market of CM was being activated.

• International conference on construction engineering and project management
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• 2024.07a
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• pp.137-144
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• 2024

Public infrastructure projects are implemented to achieve targeted economic development of nations. However, due to the delayed execution of projects, the investment cost of the project increases in proportion to time overrun. The increased investment cost for the defined scope of project may have an effect on the achievement of planned future benefits, but the effect of delay on the loss of estimated benefits is not well explored. The primary objective of this research is to assess the effect of delayed execution of road and bridge construction projects on the estimated future benefits. Furthermore, the relationship between delay and the percentage loss of future benefits is modeled using the linear regression analysis. The data consists of 395 road and 248 bridge construction contracts under the Department of Roads, Nepal. The statistical analysis of road and bridge construction contracts showed that there is a reduction in estimated benefits in future years due to the effect of delay. The relationship between the percentage loss of estimated benefit and delay period in months was found to be significant for both road and bridge contracts. The results show that delay not only affects the short-term cost overrun but also the achievement of estimated future benefits. This research thus contributes valuable insights into the understanding of the impact of project delays on both cost overruns and the loss of estimated future benefits. Furthermore, this research has practical implications for policymakers, private sector investors, and financing agencies involved in infrastructure development projects.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.440-444
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• 2015

As domestic construction investment has been gradually reduced, expanding overseas construction is one of the most important issues for Korean construction companies. Among these issues, strategies for overseas CM services have widely been discussed, because the CM services have features of high growth potential and value-added area when compared with other construction sectors. Therefore, recent efforts focus on further development in advanced CM capabilities and expansion to overseas market. However, there has been lack of quantitative research to investigate current status and future direction of CM industry. In this sense, this research investigated what CM has achieved for the past 17years (between 1997 and 2013) and what CM should accomplish for future strategies. The purpose of this research is to statistically analyze total of 2,983 CM service contracts over the past 17 years published in KISCON (Knowledge Information System of Construction Industry) in order to examine current status of CM industry in terms of market type, contract size, commodity type, and owner's type. Based on this research, it is expected to suggest for future strategies and development directions from the CM industry perspective that could provide quantitative analyses, improve current CM statistics systems and strengthen the competitiveness in international CM market.

• 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.

• Korean Journal of Construction Engineering and Management
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• v.10 no.6
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• pp.146-153
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• 2009

The year 2008 was a hard year for Korea's construction companies. The real estate downturn resulted in halting new construction and stopping existing work, and inflation of global oil prices caused price hikes in rebar and concrete materials. As a solution to reducing the budget, the newly appointed government announced plans to increase low cost bid contracts from 10 billion to 30 billion won. When such economical and political factors negatively impact the construction market, projects based on low cost contracts are the hardest hit. Many problems already inherent in low cost bid contracts become accentuated. Consequently, this provides an opportune time to actually study and analyze the issues in these projects. This paper introduces the findings made from investigating four projects struggling to make ends meet in the year 2008. Results show that flow of cash (i.e., liquidity), or lack thereof, was the root cause which in turn was hampered by failed mechanisms for design changes, material inflation. Attributing cash flow risk to the bottom of the production structure (i.e., small business subcontractors) was also a problem within the industry. Contractors need a better way to prepare against material price fluctuations, and owners need to assist in expediting payment during times of extreme downturn.