• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.379-382
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• 2001

In domestic construction industry, time and cost has been managed separately in most cases. Usually projects are managed focused on cost, so time is not yet managed systematically. Project performance in these managemental situation can not be assessed correctly. This would cause project delay, cost overrun, productivity loss. Therefore it is needed to adopt earned value concept, an approach used in the management and control of project costs and schedules. Using this EV concept through time-cost integration, project can be managed properly based on the consistency, predictability, and reliability of the performance data. This paper proposed time and cost integration process, proper PMT method, and practical performance management model through time and cost integration.

• International conference on construction engineering and project management
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• 2022.06a
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• pp.649-657
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• 2022

The COVID-19 pandemic has unprecedented impacts on different sectors around the globe. The effects observed in developing countries are even more severe. Some projects stopped while many have cost and time overrun issues. This paper conducted a case study on the COVID-19's effects on a hotel construction project in Nepal. The study reviewed the literature on COVID-19 and its impact on construction sectors and conducted a semi-structured interview with the project's personnel. The interview response was analysed and the contributing factors that impacted the project and its performance were identified. The paper found financial, operational, contractual, safety, and risk management issues in the hotel project. Overall, the project cost increased by 32% where the material cost increased by 35% and labor cost increased by 28%. This research discusses causes, measures, and provides a broad perspective of the problems, significant challenges, and opportunities associated with the effects of COVID-19 on the construction industry. The Owner as well as the Contractors incurred added costs because of COVID-19. The paper identified contributing factors and presented the challenges which could be used as opportunities to minimize unforeseen impacts of the pandemics in near future. The lesson learned from this case study was that the labor cost and materials cost could have been minimized if the Owner and the Contractor had established alternative resources such as using locally available labor, materials, and alternative suppliers.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.338-343
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• 2013

Integrated Project Delivery (IPD) as a delivery method fully capitalizes on an integrated project team that takes advantage of the knowledge of all team members to maximize project outcomes. IPD is currently the highest form of collaboration available because all three core project stakeholders, owner, designer and contractor, are aligned to the same purpose. Compared with traditional project delivery approaches such as Design-Bid-Build (DBB), Design-Build (DB), and CM at-Risk, IPD is distinguished in that it eliminates the adversarial nature of the business by encouraging transparency, open communication, honesty and collaboration among all project stakeholders. The team appropriately shares the project risk and reward. Sharing reward is easy, while it is hard to fairly share a failure. So the compensation structure and the contingency in IPD are very different from those in traditional delivery methods and they are expected to encourage motivation, inspiration and creativity of all project stakeholders to achieve project success. This paper investigates the compensation structure in IPD and provides a method to determine the proper level of contingency allocation to reduce the risk of cost overrun. It also proposes a method in which contingency could be used as a functional monetary incentive when established to produce the desired level of collaboration in IPD. Based on the compensation structure scenario discovered, a probabilistic contingency calculation model was created by evaluating the random nature of changes and various risk drivers. The model can be used by the IPD team to forecast the probability of the cost overrun and equip the IPD team with confidence to really enjoy the benefits of collaborative team work.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.534-541
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• 2011

Risk evaluation approaches for bidding on international construction projects are typically partitioned into three stages: country selection, project classification, and bid-cost evaluation. However, previous studies are frequently under attack in that they have several crucial limitations: 1) a dearth of studies about country selection risk tailored for the overseas construction market at a corporate level; 2) no consideration of uncertainties for input variable per se; 3) less probabilistic approaches in estimating a range of cost variance; and 4) less inclusion of covariance impacts. This study thus suggests a three-staged risk evaluation model to resolve these inherent problems. In the first stage, a country portfolio model that maximizes the expected construction market growth rate and profit rate while decreasing market uncertainty is formulated using multi-objective genetic analysis. Following this, probabilistic approaches for screening bad projects are suggested through applying various data mining methods such as discriminant logistic regression, neural network, C5.0, and support vector machine. For the last stage, the cost overrun prediction model is simulated for determining a reasonable bid cost, while considering non-parametric distribution, effects of systematic risks, and the firm's specific capability accrued in a given country. Through the three consecutive models, this study verifies that international construction risk can be allocated, reduced, and projected to some degree, thereby contributing to sustaining stable profits and revenues in both the short-term and the long-term perspective.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2014.05a
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• pp.70-71
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• 2014

The structural work is the main process of building construction which influence on the time, cost, safety and quality. The form work is one of the main process which has from 20 to 30 percentage of structural work. Especially the form work for beams is complex and need more manpower compared with form work for column or slab. When the existing forms such as plywood form, steel framed wooden form and aluminum form, is used for form work of beam, it would result in the cost overrun caused by needs of lots of manpower and resources. Therefore, the aim of this study is analysis of the requirement for development of SMART beam form. The result of this study shall be used for the development of SMART form work system.

• Journal of Construction Engineering and Project Management
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• v.6 no.2
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• pp.24-29
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• 2016

This paper elaborates the significance of scenario planning in risk management, and presents an integrated approach which takes into account the 'Risk Events' derived from scenario planning for risk prioritisation. This research integrates scenario planning with Risk Failure Mode and Effect Analysis (RFMEA) through examples from construction litigations of project schedule and cost overrun cases as a simplified approach to project risk management. The proposed methodology incorporates scenarios developed from realistic events of dispute and arbitration cases from construction projects, and thereby increasing potential to foresee risks and their effects well in advance. The results from this methodology shall be validated against outcome of survey study conducted by KPMG-PMI (2013) on project schedule and cost overruns that was based on Ministry of Statistics and Programme Implementation (MoSPI) Project Monitoring data for 2012-13.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2018.05a
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• pp.72-73
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• 2018

The accuracy of contingency estimation plays an important role for dealing with the uncertainty of the financial success of construction project. Its' estimation may be used for various purposes such as schedule control, emergency resolve, and quality expense, etc. This paper presents a contingency estimation method which is schedule control specific. The method 1) implements stochastic EVMS, 2) detects a specific timing for schedule compression, 3) identifies an optimal strategy for shortening planned schedule, 4) finds a probability density function (PDF) of project cost overrun, and 5) estimates the optimal contingency cost based on the level of confidence. The method facilitates expeditious decisions involved in project budgeting. The validity of the method is confirmed by performing test case.

• Journal of the military operations research society of Korea
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• v.32 no.1
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• pp.73-89
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• 2006

In this paper, EVMS procedure for KHP program is presented. Research and development of a defense system as a long lead program has a high probability of cost growth due to the uncertainty and risk. Therefore, meeting schedule, technical performance and preventing excessive cost overrun are the main concerning point to successful research and development program. EVMS(Earned Value Management System) is a program management system using earned value to control cost, schedule and technical performance. In order to control cost and schedule and to meet technical performance requirements of the KHP research and development program, it is necessary for us to adapt EVMS to the program.

• Journal of Construction Engineering and Project Management
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• v.10 no.1
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• pp.16-32
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• 2020

Cost and time control of projects is important in preventing project failure. However, achieving effective cost and time control in practice is often challenging. The challenges of project cost and time control in practice are investigated by carrying out a questionnaire survey on the top 150 construction contractors in the UK followed by in-depth semi-structured interviews of practitioners from 15 construction companies in the country. Quantitative analysis reveals that design change is the most important factor inhibiting the ability of UK contractors from effectively controlling both the cost and time of construction projects. Four of the top five factors inhibiting effective cost control are also the top factors inhibiting effective time control albeit in a different order. These top factors-design changes, inaccurate evaluation of project time/duration, risk and uncertainty, non-performance of subcontractors and nominated suppliers were also found to be endogenous factors to the project. Additionally, qualitative analysis of the interviews reveals 16 key challenges to prevent for effective project cost and time control in practice. These are classified into four categorised based on where they stem from as follows; from the organisation (1. Lack of integration of cost and time during project control, 2. lack of management buy-in, 3. complicated project control systems and processes, 4. lack of a project control training regime); from the construction management/project management approach (5. Lapses in integration of interfaces, 6. project control not being implemented from the early stages of a project, 7. inefficient utilisation and control of labour, 8. limited time devoted to planning how a project will be controlled at the outset); from the client; (9. Excessive authorisation gates, 10. use of adversarial and non-collaborative forms of contracts, 11. communication problems within client set-up, 12. obstructive client representatives) and; from the project team (13. Lack of detailed/complete design, 14. lack of trust among the project partners, 15. limited time devoted to project control on site, 16. non-factual reporting). The study posits that knowledge of these project control inhibiting factors and challenges is the first step at ensuring they are avoided and enable the implementation of a more effective project cost and time control process in practice.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.389-400
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• 2020

A construction project is a designed product made up of labors, materials, and installations in the project positioned on the ground and may include the underground and ground section, and the section in water or on the water surface. It is a civil, industrial, transport, agricultural and rural development, infrastructure, or some other. A key phase in the life cycle of these construction projects is the implementation when building products are made directly with workers, equipment, materials, and managers. If there is a lack of management experience, information, and problem-solving solutions to tackle the risks faced by contractors, especially foreign ones, will fail in controlling the project's cost. This study was conducted with investigations, discussions, and evaluation of the factors that lead to cost overruns in the construction projects of international contractors in Vietnam. The principal component analysis (PCA) showed that those factors that influence cost overruns these construction projects fall into five general groups, including factors related to (i) the owners, (ii) the foreign contractors, (iii) the subcontractors and suppliers, (iv) state management, and (v) the project itself. Besides, the study proposes solutions to limit cost overruns in construction projects and improve the profitability of international contractors in Vietnam.