• Title/Summary/Keyword: Performance Contracting

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Analysis of Domestic and Overseas Environment to Introduce Performance Warranty Contracting for Pavements into Korea (도로포장 성능보증계약제도 도입을 위한 국내외 적용환경 분석)

  • Kim, Tea-Song;Seo, Yong-Chil;Lee, Sang-Beom;Koo, Jai-Dong;Kim, Kyong-Ju
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2008.11a
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    • pp.216-221
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    • 2008
  • This study has been carried out in order to observe the status of performance warranty contracting system currently being implemented at the advanced countries including Europe, U.S.A., and Japan, review the introduction feasibility and possibility. For this purposes this study has surveyed the concept and necessity of performance warranty contracting system as well as the status of domestic performance warranty contracting system. Especially the application environment for the performance warranty contracting system of Europe, U.S.A., Japan and Korea in terms of maintenance guarantee liability system, performance warranty regulations for design-build contracting system, selection method of successful bidder, performance warranty means, project contracting system including maintenance cost, and specifications and contract conditions for performance warranty system have been comparatively evaluated. And introduction methods of performance warranty contracting system were suggested.

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Directions to Introduce Warranty Contraction for Pavements in Korea (도로포장 성능보증(Warranty)계약제도 도입방향)

  • Kim, Tae-Song;Koo, Jai-Dongl
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.987-990
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    • 2007
  • Warranty contracting is contracting methods that European Countries have applied to asphalt pavement projects from long ago, and in America as the expected effects of the warranty contracting are being verified to introduce it, the number of projects with warranty is being increased rapidly. In Japan, the warranty contracting suitable for Japanese style was established and is being applied. This study investigated and analyzed the present state of the warranty contracting being applied to European countries, America and Japan, and suggested advantages and disadvantages in introducing the warranty contracting into Korea and directions to introduce it. The principal result of this study is that performance bond contract system, performance surety bond system and performance bidding system should be established to introduce the warranty contracting into Korea.

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An Analysis of Operation and Considerations for the Introduction of Performance Warranty Contracting (해외 성능계약제도의 운영현황 및 국내 도입시 고려사항 제시)

  • Cho, Su-Kyung;Seo, Yong-Chil;Lee, Sang-Beom
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.446-449
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    • 2007
  • For the restoration of construction industry, the government have offered the policy since the end of 1990. It has offered to develop the world-class technology and establish the effective production structure. In the government policy, the delivery and contracting method has improved so that construction industry could be recognized. Foreign countries have conducted the R&D and application of Innovative Contracting for improvement of facilities, reduction of LCC and innovation of contractor. Among the Innovative Contracting, 'Performance Warranty Contracting' is defined that A guarantee of the integrity of a product and of the makers responsibility for the replacement or repair of deficiencies. Performance Warranty Contracting is used for technology developments of contractor, improvement of quality, reduction of LCC, prevention of early deficiencies and reduction of owner's inspection works. This paper analyzes concept and effects of Performance Warranty Contracting and presents considerations according to the introduction.

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A study on the composition validity of performance indicators for public sewage treatment plant by using factor analysis (요인분석기법을 활용한 공공하수처리시설 성과평가 지표의 구성 타당성 연구)

  • Yoon, Cheon-Yeo;Koo, Ja-Yong
    • Journal of Korean Society of Water and Wastewater
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    • v.29 no.5
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    • pp.583-590
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    • 2015
  • Evaluation and comparison for the performance on the contracting-out became possible after the introduction of the performance indicators(PIs) in 2012 in Korea, And local governments and private companies are utilizing them as evaluation data to enhance the performance of the contracting-out. Several revisions on performance indicator were carried out by expert group on contents validity of PIs, But the review of the composition validity of PIs was not sufficient. In this study, the applicability, distinction ability and composition validity of PIs is evaluated by statistical method. From the results, Improvement of indicator is required in order to increase the interrelationship among indicators to enhance the compostion validity of indicators related with operation, sludge and water reuse.

A Study on the Analysis of Results on 'Contracting Out' of Public Library Services in Korea (우리나라 공공도서관 민간위탁의 성과 분석에 관한 연구)

  • Kwack, Dong-Chul
    • Journal of the Korean Society for Library and Information Science
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    • v.38 no.1
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    • pp.51-75
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    • 2004
  • The purpose of this study is to analyze the performance of contracting out public libraries. in order to contribute to the promotion of their effective operation in Korea. Three public libraries which are currently operated by 'contracting out' are selected to be reviewed for this study. Their performance are analyzed by means of literature search, questionnaires, and on-the-spot-survey. Investigated in detail are the following issues: First, the need for and background of 'contracting out' public library services, and their present state in Korea: Second. the pros and cons of 'contracting out' public library services; Third, the outcomes of public library services which have been currently contracted out. Finally, based on the aforementioned findings, a future model of 'contracting out' public library services is proposed, Also suggested are the strategies for furthering the effective management of public libraries.

Performance Indicator and Threshold Value of National Highway Jointed Concrete Pavements (일반국도 줄눈 콘크리트 포장의 성능인자와 임계한도)

  • Yeo, Hyun Dong;Seo, Youngguk;Suh, Young Chan;Jeong, Jin Hoon
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.30 no.3D
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    • pp.279-288
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    • 2010
  • Recently, researches on the performance warranty contracting has been going on to improve construction quality in road pavement area. The performance warranty contracting gives construction companies opportunity to select materials and methods freely while asks them to maintain a certain level of performance during a given period. To introduce the performance warranty contracting in Korea, lots of research results on performance indicator and threshold value of asphalt pavement have been made to be included in the warranty specification. However, research effort on the performance indicator and threshold value of concrete pavement which is commonly constructed in expressway and national highway has not been enough. In this study, the warranty duration, performance indicator, and threshold value of the concrete pavement were investigated by reviewing literatures on cases of the performance warranty contracting in European countries and states of the US. Major distresses influencing the performance of jointed concrete pavement were investigated and analyzed to be compared to the warranty duration, performance indicator, and threshold value of foreign countries.

TOWARDS A RELATIONAL CONTRACTING FRAMEWORK IN THE AUSTRALIAN CONSTRUCTION INDUSTRY: AN INITIAL FRAMEWORK

  • Melissa Chan;Bambang Trigunarsyah;Vaughan Coffey
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.117-123
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    • 2011
  • The Australian construction industry is characterized as being a competitive and risky business environment due to lack of cooperation, insufficient trust, ineffective communication and adversarial relationships which are likely lead to poor project performance. Relational contracting (RC) is advocated by literature as an innovative approach to improve the procurement process in the construction industry. Various studies have collectively added to the current knowledge of known RC norms, but there seem to be little effort on investigating the determinants of RC and its impact on project outcomes. In such circumstances, there is lack of evidence and explanation on the manner on how these issues lead to different performance. Simultaneously, the New Engineering Contract (NEC) that embraced the concept of RC is seen as a modern way of contracting and also considered as one of the best approaches to the perennial problem of improving adversarial relationships within the industry. The reality of practice of RC in Australia is investigated through the lens of the NEC. A synthesis of literature views on the concept, processes and tools of RC is first conducted to develop the framework of RC. A case study approach is proposed for an in-depth analysis to explore the critical issues addressed by RC in relation to project performance. Understanding the realities of RC will assist stakeholders in the construction industry with their investment in RC.

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SCHEMATIC APPROACH TO IMPROVE TIME PERFORMANCE OF HIGHWAY CONSTRUCTION CONTRACTS

  • Ralph D. Ellis ;Jae-Ho Pyeon
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.638-642
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    • 2005
  • This paper presents incentive application strategies and delay prevention strategies as schematic approaches to improve time performance of highway construction contracts. This research recognizes the importance of improving time performance during highway construction. Strategic solutions of the most core issues on time performance incentive contracting are identified. The suggested incentive application strategies develop criteria for applying time classification to projects, for assigning project time classifications to contractors and designers, and for determining appropriate incentive values in A (cost) + B (time cost) and other performance incentive contracts. The suggested delay prevention strategies develop criteria for determining the appropriate subsurface utility engineering (SUE) level and to develop best practices for avoiding utility relocation delays. A schematic approach for each strategy is developed. This paper also introduces current incentive contracting practices in Florida. The researchers obtained the information from experienced persons in the highway construction industry, including key highway contractors, designers, and Department of Transportation (DOT) and Federal Highway Administration (FHWA) personnel. The major focus of this research is to develop strategies and suggest approaches to improve time performance of highway construction contracts. For future study, practical tools to facilitate implementation of the suggested strategies should be developed, so that the criteria, implementation processes, and best practices developed may contribute to the current industry-wide effort to improve time performance.

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RELATIONAL CONTRACTING: THE WAY FORWARD OR JUST A BRAND NAME?

  • Fiona Y.K. Cheung;Steve Rowlinson
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.1013-1016
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    • 2005
  • Accounts of the development of a successful construction project often stress the importance of team relationship, project environment and senior management commitment. Numbers of studies carried out in the past decades indicate there needs to be a change of culture and attitude in the construction industry. In order for a turn around in the industry, relational contracting approaches have become more popular in recent years. However, not all relational contracting projects were successful. This paper details the fundamental principles of relational contracting. It further reports findings of a research currently taking place in Australia, how effective is relational contracting in practice. The problem addressed in this research is the implementation of relational contracting: • Throughout a range of projects • With a focus on client body staff The context within which the research was undertaken is: • Empowerment, regional development and promotion of a sustainable industry • The participating organisations have experience of partnering and alliancing • Success has been proven on large projects but performance is variable • Need has been identified to examine skill sets needed for successful partnering/alliancing The practical rationale behind this research is that: • Partnering and alliancing require a change of mind set - a culture change • The Client side must change along with contracting side • A fit is required between organisation structure and organisation culture Research Rationale: The rationale behind this project has been to conduct research within participating organisations, analyse, rationalise and generalise results and then move on to produce generic deliverables and "participating organisation specific" deliverables. This paper sets out the work so far, the links between the various elements and a plan for turning the research output into industry deliverables.

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A Basic Study on the Methodology to Introduce Warranty Contracting for Pavements in Korea (도로포장 성능보증(Warranty) 계약제도 도입방안에 관한 기초연구)

  • Kim, Tae-Song;Seo, Yong-Chil;Lee, Sang-Beom;Koo, Jai-Dong
    • Korean Journal of Construction Engineering and Management
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    • v.9 no.4
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    • pp.66-74
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    • 2008
  • Warranty contracting for pavements construction has been widely used in Europeans countries, Japan, and the U.S. and the benefits of warranty contract has been proven. This research investigated the European, U.S., and Japanese warranty contract policies and compared pros and cons. The most appropriate warranty contract policy solution is developed to fit in the Korean construction industry culture. Three main conclusions have been developed in this study: (1) performance specifications should be developed; (2) the systematic method is required to estimate the appropriate costs of performance bond and warranty period, etc.; and (3) short and long term plans for adopting performance warranty contract in Korea are suggested.