• Title/Summary/Keyword: Contract Types

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Impacts of Contract types on Construction Project Performance - Cost Reimbursable and Lump Sum - (계약방식에 따른 건설프로젝트 성과의 비교분석 연구 - 실비정산방식과 총액계약방식을 중심으로 -)

  • Lee, Yoo-Seob;Hwang, Bon-Gang
    • Korean Journal of Construction Engineering and Management
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    • v.8 no.2
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    • pp.155-163
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    • 2007
  • Multiple parties-owners, engineering and construction contractors, and suppliers involve the delivery process of capital facility projects in the construction industry, and each party obtains or provides their workforce, material, equipment, or service tied into specific contracts. Considering that construction projects are based on the contracted relationship between the parties and that contract types are one of the significant factors determining project success. it is critical for project stakeholder to select appropriate contract types for successful deliveries of projects. With these considerations, this paper assesses impacts of different contract types on project cost, schedule, safety, change, or rework. Analyzing data from real construction projects, the differences in project performance between two contract types, Cost Reimbursable and Lump Sum are measured and statistically tested to investigate if the differences are significant. For this analysis, performance metrics developed by Benchmarking and Metrics program, the Construction Industry Institute are used.

Freedom of contract in the digital age and its implementation in modern technologies: theory and practice

  • Davydova, Iryna;Bernaz-Lukavetska, Olena;Tokareva, Vira;Andriienko, Iryna;Tserkovna, Olena
    • International Journal of Computer Science & Network Security
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    • v.21 no.12spc
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    • pp.544-548
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    • 2021
  • Scientific and technical development, as well as the emergence of new types of contracts, which do not have their expression in current legislation, force us to explore the issues of contract law to adapt to change. In this context, the principle of freedom of contract is fundamental, which states that each person has the right to enter into a contractual relationship at his discretion. However, such freedom is not absolute, because the freedom of one person should not violate the freedom of another. Together with the conflict of private and public interests, these phenomena are a field for the study of topical issues of theory and application of the principle of freedom of contract in practice. Research methods are philosophical, general scientific, and special scientific methods, in particular, system-structural, formal-legal, hermeneutic; methods of analysis, synthesis, etc. As a result of the research, the main characteristics of the principle of freedom of contract, its role for private law regulation of contract law are given; approaches to understanding the restriction of contract freedom are analyzed; typical examples and means of such restrictions are identified; demonstrated how contract freedom is embodied in the use of IT tools, which types of contracts are most common in the digital environment.

An Exploratory Study on the Taxonomy of Control Types in IS Outsourcing Project Management (IS 아웃소싱 프로젝트 관리를 위한 통제의 실증적유형에 관한 탐색적 연구)

  • Lee, Sang-Kon
    • Asia pacific journal of information systems
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    • v.15 no.1
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    • pp.25-44
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    • 2005
  • This study examines control types of IS outsourcing project management focusing on two sets of questions: What control types are implemented during IS outsourcing projects? How various control types affect the performance of IS outsourcing projects. In order to meet these objectives, four control types are developed using typology-approach: dynamic, contract-oriented, partnership-oriented, and passive. And then four control types are identified based on taxonomy-approach using cluster analysis from 66 projects: dynamic, contract-oriented, passive, and middle. The result shows that the derived taxonomy-types are similar to the typology-types except partnership-oriented type. The result also indicates that dynamic and contract-oriented types are in the highest performance, while passive type is in the least performance.

Evaluating the Performance of Revenue Sharing Contract in Three Stage Supply Chain System

  • Chungsuk RYU
    • Journal of Distribution Science
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    • v.22 no.1
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    • pp.95-103
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    • 2024
  • Purpose: Focusing on the complex supply chain operations beyond the simple dyadic relationship, this study evaluates the performance of the revenue sharing contract in three stage supply chain system. Research design, data, and methodology: The optimization model is developed to describe the supply chain system where one manufacturer, one wholesaler, and one retailer exist and pursue the maximum level of their own profits. In the numerical examples of the proposed supply chain model, two types of the revenue sharing contract, pairwise and spanning methods, are tested and their performances are compared with the traditional system. Results: The numerical analysis reveals that both types of the revenue sharing contract outperform the traditional system. All supply chain members can achieve the improved profits only when they determine the proper combination of revenue share ratios and price discount rates. Conclusions: This study finds out that both pairwise and spanning revenue sharing contracts can make the positive outcome that is acceptable to all members in three stage supply chain system. When the proper contract content is agreed among the supply chain members, the revenue sharing contract has the potential to be the practically feasible collaboration program for the multiple stage supply chain system.

A Study of the Improvement for the Contract Types and Contract Category of the Weapon Systems (무기체계류 계약형태 및 계약종류 개선방안 연구)

  • Kim, Ki-Taek;Park, Hong-Rae;Cho, Yong-Gun
    • Journal of the military operations research society of Korea
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    • v.34 no.3
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    • pp.13-29
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    • 2008
  • The purpose of this study is to propose a model of the contract type and contract category in the process of programs in each stage which is the procurement by defence improvement program of a large long term programs. When requiring the contract, contractor confirms the contract type and contract category of the review the contract in bulk, separate contract by repeatedly. For the study of improvement method we used previous research paper, reports of DAP A and KIDA, laws of contract and other several materials. and we also applied the rational contract type and contract category for the general mass production program weapon system based on the analysis of contract states concluded with DAPA and old-DAPA, and collect the public opinions of the defense industry.

The Effects of Psychological Contract Violation on OS User's Betrayal Behaviors: Window XP Technical Support Ending Case (심리적 계약 위반이 OS이용자의 배신 행동에 미치는 영향: 윈도우 XP 기술적 지원서비스 중단 사례)

  • Lee, Un-Kon
    • Asia pacific journal of information systems
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    • v.24 no.3
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    • pp.325-344
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    • 2014
  • Technical support of Window XP ended in March, 8, 2014, and it makes OS(Operating System) users fall in a state of confusion. Sudden decision making of OS upgrade and replacement is not a simple problem. Firms need to change the long term capacity plan in enterprise IS management, but they are pressed for time and cost to complete it. Individuals can not help selecting the second best plan, because the following OSs of Window XP are below expectations in performances, new PC sales as the opportunities of OS upgrade decrease, and the potential risk of OS technical support ending had not announced to OS users at the point of purchase. Microsoft as the OS vendors had not presented precaution or remedy for this confusion. Rather, Microsoft announced that the technical support of the other following OSs of Wndow XP such as Window 7 would ended in two years. This conflict between OS vendor and OS users could not happen in one time, but could recur in recent future. Although studies on the ways of OS user protection policy would be needed to escape from this conflict, few prior studies had conducted this issue. This study had challenge to cautiously investigate in such OS user's reactions as the confirmation with OS user's expectation in the point of purchase, three types of justice perception on the treatment of OS vendor, psychological contract violation, satisfaction and the other betrayal behavioral intention in the case of Window XP technical support ending. By adopting the justice perception on this research, and by empirically validating the impact on OS user's reactions, I could suggest the direction of establishing OS user protection policy of OS vendor. Based on the expectation-confirmation theory, the theory of justice, literatures about psychological contract violation, and studies about consumer betrayal behaviors in the perspective of Herzberg(1968)'s dual factor theory, I developed the research model and hypothesis. Expectation-confirmation theory explain that consumers had expectation on the performance of product in the point of sale, and they could satisfied with their purchase behaviors, when the expectation could have confirmed in the point of consumption. The theory of justice in social exchange argues that treatee could be willing to accept the treatment by treater when the three types of justice as distributive, procedural, and interactional justice could be established in treatment. Literatures about psychological contract violation in human behaviors explains that contracter in a side could have the implied contract (also called 'psychological contract') which the contracter in the other side would sincerely execute the contract, and that they are willing to do vengeance behaviors when their contract had unfairly been broken. When the psychological contract of consumers had been broken, consumers feel distrust with the vendors and are willing to decrease such beneficial attitude and behavior as satisfaction, loyalty and repurchase intention. At the same time, consumers feel betrayal and are willing to increase such retributive attitude and behavior as negative word-of-mouth, complain to the vendors, complain to the third parties for consumer protection. We conducted a scenario survey in order to validate our research model at March, 2013, when is the point of news released firstly and when is the point of one year before the acture Window XP technical support ending. We collected the valid data from 238 voluntary participants who are the OS users but had not yet exposed the news of Window OSs technical support ending schedule. The subject had been allocated into two groups and one of two groups had been exposed this news. The data had been analyzed by the MANOVA and PLS. MANOVA results indicate that the OSs technical support ending could significantly decrease all three types of justice perception. PLS results indicated that it could significantly increase psychological contract violation and that this increased psychological contract violation could significantly reduce the trust and increase the perceived betrayal. Then, it could significantly reduce satisfaction, loyalty, and repurchase intention, and it also could significantly increase negative word-of-month intention, complain to the vendor intention, and complain to the third party intention. All hypothesis had been significantly approved. Consequently, OS users feel that the OSs technical support ending is not natural value added service ending, but the violation of the core OS purchase contract, that it could be the posteriori prohibition of OS user's OS usage right, and that it could induce the psychological contract violation of OS users. This study would contributions to introduce the psychological contract violation of the OS users from the OSs technical support ending in IS field, to introduce three types of justice as the antecedents of psychological contract violation, and to empirically validate the impact of psychological contract violation both on the beneficial and retributive behavioral intentions of OS users. For practice, the results of this study could contribute to make more comprehensive OS user protection policy and consumer relationship management practices of OS vendor.

A Study on the Unfairness of Adhesion Contracts for Internet Contents Service (인터넷 콘텐츠서비스 이용약관의 불공정성 검토에 관한 연구)

  • Park Mi Hye;Kang Lee Ju
    • Journal of the Korean Home Economics Association
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    • v.42 no.12 s.202
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    • pp.123-140
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    • 2004
  • The purpose of this study was to explore the unfairness of adhesion contracts for internet contents service. The internet contents were classified into six types of avatar, learning, download, e-book and movie internet sites. The adhesion contracts of internet contents service were collected in 60 internet sites. The unfairness of the adhesion contract was reviewed under the adhesion contract regulation act. The major results were as follows. First, the obligation of clear statement, explanation, and delivery was not observed completely. Second, many articles of adhesion contract were unfair and they especially violated articles 7 and 9. Therefore, the standard adhesion contract system for internet content service should be enforced and self-regulation of information service providers is needed.

Component Outsourcing Contracts in a Two-Component Assembly System (두 가지 부품으로 구성된 조립시스템에서 부품 아웃소싱 계약에 대한 고찰)

  • Kim, Eun-Gab
    • IE interfaces
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    • v.22 no.2
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    • pp.165-173
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    • 2009
  • This paper considers a two-component assembly system that makes different types of purchasing contracts by component type and studies the issue of coordinating those contracts. Acquisition of type 1 component is based on the long-term contract. In contrast, type 2 component is intermittently purchased under the sort-term contract. We identify the structural properties of the optimal short-term contract and investigate how the changes in system parameters affect the optimal performance. To provide managerial insights, we compare the short-term and long-term contracts for type 2 component and discuss the conditions that make the short-term contract preferable to the long-term contract. We also present a result which shows that coordinating the contracts of type 1 and type 2 components can be significantly profitable over uncoordinating them.

A Study on Legal Issues and Arbitration Appropriateness with Exclusive Contract of Entertainment Management (연예인 전속매니지먼트계약의 법적 쟁점과 중재적합성에 관한 연구)

  • Choi, Seung-Soo;Ahn, Keon-Hyung
    • Journal of Arbitration Studies
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    • v.19 no.2
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    • pp.49-72
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    • 2009
  • Korea Fair Trade Commission (KFTC), one of the Government agencies, has been preparing a standard model form of Exclusive Contract for Entertainment Management (hereinafter referred to as "Exclusive Contract") to eliminate some types of unfairness that placed entertainers at disadvantage such as forced PR activities or activities without payment, excessive privacy infringement, and exemption of payment after the termination of the exclusive contract. The said Exclusive Contract was drafted by The Korean Commercial Arbitration Board (the "KCAB") in association with the Korean Entertainment Law Society (the "KELS") and KCAB has persistently persuaded Corea Entertainment Management Association (the "CEMA"; mainly actors management) and Korea Entertainment Producers' Association (the "KEPA"; mainly singers management) to adopt the above-mentioned Exclusive Contract, respectively, and especially arbitration clause instead of litigation. After KCAB's tens of meetings and persuasion, they finally decided to accept KCAB's offer and they have submitted the Exclusive Contract drafted by KCAB and KELS to KFTC on April 17, 2009. The arbitration clause drafted by KCAB was already accepted by unfair contract examination division and unfair contract advisory committee and the final standard model contract was supposed to be publicly announced on June 30, 2009 after final examination of unfair contract standing committee, but the announcement has been delayed owing to severe controversies between the concerned parties, such as CEMA, KAU (Korea Artists' Union), KEPA and KSA (Korea Singers' Association) related to delicate issues like contract period and ownership of intellectual properties, etc. But it is expected the announcement will be made very soon by which the contract will include the originally drafted arbitration clause by KCAB. Therefore, it is very timely to examine the various legal issues which can be arisen out of disputes, and arbitration appropriateness with Exclusive Contract of Entertainment Management on this paper.

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A Study on the FIDIC's Conditions of Contract for EPC/Turnkey Projects (FIDIC의 EPC/Turnkey 프로젝트용 표준약관(標準約款)에 관한 연구(硏究))

  • Choi, Myung-Kook
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.18
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    • pp.189-218
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    • 2002
  • The EPC/Turnkey Contract goes to the extreme in allocating risks to the contractor and depending on the types of project, this may be regarded as unacceptable. It has also gone to the extreme in the extent to which the contractor is responsible for the specification and design of the Works. The employer is not responsible for correctness of any information provided by him nor for correctness of any specification or other matter included in the Employer's Requirements, except the definition of the intended purpose and criteria for testing and performance. With such conditions it is surprising that the employer is entitled to interfere in the contractors performance to an extent that is close to what is norm for a construction contract with employer design and with normal risk allocation. The combination of risk allocation and inappropriate administrative provisions makes the EPC/Turnkey Contract a document that will meet severe resistance from contractors. It is also likely that employers will see the risks and difficulties from their own perspective. It is a fiction that the EPC/Turnkey Contract will give the employer a contact with a certainty of final price and completion date. It is not a fiction that the EPC/Turnkey Contract carries many seeds for disputes between the parties. The Orange Book has become an accepted document even if it clearly contains some weaknesses. Some of these have been corrected in the Plant Contract. In my opinion FIDIC should let users become more familiar with the Plant Contract as a follow up to the Orange Book.

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