• International conference on construction engineering and project management
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• 2013.01a
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• pp.145-150
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• 2013

As a recent global trend, the majority of mega-size plant projects are delivered through EPC (Engineering, Procurement and Construction) contracts, where a single contract is awarded for engineering, procurement, and construction. Under this contracting mechanism, it is challenging for contractors to carry out the projects under traditional project management processes used in design-bid-build projects. A new EPC Plant, the POSCO Special Steel Plant in Changwon, was built successfully at the beginning of 2012 and it is currently in full-scale production. The project has encountered a number of major difficulties however, with some technical and managerial issues through its development process. As summarized in this paper, the authors (as project participants with the contractor) investigated it as a post construction analysis and recorded the Lessons-learned for future project management improvement.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2010.05b
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• pp.103-108
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• 2010

The purpose of this study is to analyze of the risk factors for oversea plants construction projects. For this study, risk factors data from related literature review, research organization and construction company was researched and classified under each EPC phases. In addition, a questionnaire survey by plant experts was conducted for analysis of risk weight and costs and time impact on each EPC phases. The results of this study are as follows: First, a detail design errors(engineering phase), a equipment procurement plan(procurement phase), and exchange rate fluctuations(construction phase) were analyzed the highest weight factors. Second, a financing plan(engineering phase), quantity take-off bill(procurement phase), and exchange rate fluctuations(construction phase) were analyzed the highest cost impact factors. Third, detail design errors(engineering phase), a equipment procurement plan(procurement phase), and schedule management errors(construction phase) were analyzed the highest time impact factors.

• Journal of the Korean Society of Systems Engineering
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• v.14 no.1
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• pp.52-62
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• 2018

A software support system, called procurement engineering management support system (PeMSS), is currently under development through a joint research project. The procurement-related scenarios considered in this research is as follow: an EPC (Engineering, Procurement and Construction) company receives an EPC project contract and starts the project to deliver the agreed system to the acquirer. In order to acquire the required equipments that the EPC company does not produce by itself, it eventually interacts with subcontractors, also called vendors. The EPC company responsibilities during the procurement activities are twofold. First, the EPC company has to guarantee that it has ordered the equipment, through issuing Purchase Order (PO), based on the requirements stated in the contract. Second, the EPC company has to verify that the received equipment designs, called Vendor Print (VP), meet the specifications in the PO, before finally acquiring the equipments. During our survey study, we discovered that EPC company takes a lot of time and effort to create PO and verify VP, mainly because these activities are performed manually by the responsible engineers. Therefore, we intent to support the above activities by developing a support system to the legacy procurement system that can trace the requirements from the contract to the PO and VP, among other functionalities. At the time of the writing of this paper, PeMMS is still under-development, thus, in this paper we focus on presenting the development steps of PeMMS using systems engineering theory and introducing the PO creation function. Wholly, PeMSS attempts to reduce the time and effort of engineers on the procurements activities while also increasing the quality of the procurement outcomes.

• Journal of the Korean Society of Systems Engineering
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• v.14 no.2
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• pp.33-40
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• 2018

This paper is based on the interim result of ongoing research and development project to develop a software system which support procurement activities, namely PeMSS (Procurement Engineering Management Support System). PeMSS is a system that enables development requirements for each equipment and help designing equipment meeting the purchase requirements. Procurement at EPC (Engineering Procurement and Construction) and operational stage of a plant is an important area that determines the integrity and profitability of the plant. Procurement of unsuitable equipment due to selection of suppliers that do not meet or omit critical requirements in purchase specification can result in enormous cost increase due to such as delay in EPC project, unsatisfactory performance and reduced plant operation time. In spite of the importance of the procurement engineering, there is a lack of support system for systematic preparation of purchase specification, so development of the procurement specification is basically relying on the experience of the engineers in charge. Accordingly, it is needed to develop the PeMSS to help procurement engineers develop procurement specification based on systems engineering approach. This paper introduces the design of the PeMSS.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.375-380
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• 2009

Gas & Oil plant construction projects are increasing recently all over oil-producing countries. An EPC (Engineering, Procurement and Construction) company, which participates in the plant projects, should possess pertinent engineering licenses and EPC management skills to create high added-value. Nonetheless, there exist various risks involved in the EPC life cycle process due to such characteristics of construction projects as long duration of construction time and complicated processes along with the procured goods or services subjected to various logistics. The objective of this paper is to analyze the overall EPC life cycle for proper process and to examine various information and document. Additionally, the principal data for the analysis of the EPC process are derived from personal interviews with experts and specialty contractors of the plant projects. The results of this study would be widely used as a guide for efficient and effective management of overseas gas plant projects.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.491-494
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• 2007

Recently Gas & Oil plant construction projects are increasing in the world. The EPC (Engineering, Procurement and Construction) company, which participate in the plant projects, should possess the pertinent engineering license and procurement skill to create high added-value. It is because the procurement is very substantial to cover 70% of the total project cost. Nonetheless, there exist various risks involved in the procurement process due to the characteristics of the construction projects with long duration and complicated process as well as the procured goods or services subjected to various logistics. The objective of this paper is to analyze proper process in the procurement and to identify various information and document. Also to analyze procurement process, the principal data are derived from the interview with experts and specialty contractors of plant project. The result of this study would widely be used as a guide to the procurement personnel in forecasting the risks in advance.

• International conference on construction engineering and project management
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• 2022.06a
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• pp.823-830
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• 2022

The risk of project execution increases due to the enlargement and complexity of Engineering, Procurement, and Construction (EPC) plant projects. In the fourth industrial revolution era, there is an increasing need to utilize a large amount of data generated during project execution. The design is a key element for the success of the EPC plant project. Although the design cost is about 5% of the total EPC project cost, it is a critical process that affects the entire subsequent process, such as construction, installation, and operation & maintenance (O&M). This study aims to develop a system using machine-learning (ML) techniques to predict risks and support decision-making based on big data generated in an EPC project's design and construction stages. As a result, three main modules were developed: (M1) the design cost estimation module, (M2) the design error check module, and (M3) the change order forecasting module. M1 estimated design cost based on project data such as contract amount, construction period, total design cost, and man-hour (M/H). M2 and M3 are applications for predicting the severity of schedule delay and cost over-run due to design errors and change orders through unstructured text data extracted from engineering documents. A validation test was performed through a case study to verify the model applied to each module. It is expected to improve the risk response capability of EPC contractors in the design and construction stage through this study.

• Plant Journal
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• v.5 no.3
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• pp.59-65
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• 2009

In the plant EPC project, the procurement work can be considered as the most important part that affects the success or failure of project as it has the closest mutual influence in every execution process of the project. Procurement takes up generally 60% ~ 70% of the entire project budget and the current trend of plant EPC project becoming larger in scale and a variety of process technology being applied. So, it is needed to identify the risks that are expected to occur according to the stages of procurement work, namely, proposal stage, manufacturer selection and purchasing agreement stage, expediting the process management of manufacturer stage, inspection stage and logistics & transportation stage. The management of observation and control of the risks should be performed with the response techniques which are 'avoid',' transfer'and' mitigate'.

• Korean Journal of Construction Engineering and Management
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• v.23 no.6
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• pp.101-110
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• 2022

Recently, the global construction market is expected to grow at an annual average of 4.8% by 2025 and the risk of overseas construction is also expected to increase accordingly. In particular, domestic construction companies intensively participated in the EPC(Engineering, Procurement, Construction)/Turnkey project, but as a result of failing to respond to contractual risks, they have suffered losses of trillions of won in overseas business since 2013. Nevertheless, there have been not many studies on the derivation of EPC/Turnkey's contractual key risk sub-clauses. Therefore, in this study, the key risk sub-clauses were studied for the conditions of the 2017 Silver Book contract issued by the International Consulting Engineering Federation(FIDIC). To this end, 30 experts with more than 10 years of experience in international construction contracts were formed as a panel to conduct a Delphi survey on 170 sub-clauses of 21 clauses of FIDIC Silver Book to derive 62 main risk sub-clauses. In addition, the RPN(Risk Priority Number) was finally calculated using the FMEA(Failure Mode and Effect Analysis) technique, and 25 key risk sub-clauses within the Critical Risk range were derived. Through the results of this study, the practical point of view is able to refer to the contract provisions to be carefully reviewed at the bidding and contract signing stage in overseas construction projects. From an academic point of view, it provides direction and basic knowledge of how to study the contract fields used in overseas construction EPC/Turnkey projects.

• Korean Journal of Construction Engineering and Management
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• v.10 no.5
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• pp.3-15
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• 2009

Recently, it has increased projects in the Oil and Gas industry as growing plant of overseas construction market. Therefore, domestic companies need to set some aggressive plans up that secure competitiveness of international plant business such as enhancing productivity, technological ability and statistical management. Specifically in the Oil and Gas industry of overseas plant business requires implying information in EPC (Engineering, Procurement and Construction, below EPC) more, but it has not been suggested an appropriate breakdown system for contents that manages the information each EPC phase, which lead to problems such as revision of design document, occurring duplicated work and omissions of each participant. For these problems, we find market share decreasing and competitiveness running down. Thus, for increasing practical use of contents management system and construction industry's information, this paper suggests a contents breakdown system based on BPM (Business Process Management), defines business process and systematizing knowledge needed, and finally analyzing contents information that establish information among industrial facilities in Design phase which is the weakest part of domestic companies.