• Title/Summary/Keyword: Prolongation Cost

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Application of Accrual Basis for Calculation of Prolongation Cost in Construction Projects (공기연장 추가간접비 산정기준의 발생주의방식 적용 연구)

  • Jeong, Kichang;Lee, Jaeseob
    • Korean Journal of Construction Engineering and Management
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    • v.19 no.5
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    • pp.111-120
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    • 2018
  • Recently, Domestic public construction projects are experiencing a great deal of disputes because of the growing uncertainty about the criteria for calculating the prolongation cost. In addition, researchers have been studying various systems and proper cost estimates in an effort to reduce the uncertainty of these systems and the occurrence of disputes. However, there is no standard yet for social consensus. Meanwhile, The study on the classification system according to the recognition standard of accounting has been systematically studied. As a result, the concepts of accrual and cash basis are defined separately. The purpose of this study is to verify the possibility of applying the concept of 'accrual basis' to the Standard for calculation of prolongation cost. Therefore, As a result of analyzing the occurrence pattern of Job-site overhead cost, it is confirmed that actual costs can not be calculated by the cash-basis method. In particular, the implications of the necessity of the accrual-basis method should be more strictly indicated in the case of items such as indirect labor costs and welfare benefits. In addition, the contractor 's claim report and the appraisal report were examined. As a result, it was confirmed that the calculation situations of prolongation costs are biased to the cash-basis method. In this way, it is suggested that necessary to supplement the calculation standard of the actual costs from the point of view of accrual basis.

CONSTRUCTION COST CLAIMS, OR ENTITLEMENTS?

  • Tan Hock Soon Adrias
    • International conference on construction engineering and project management
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    • 2007.03a
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    • pp.150-159
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    • 2007
  • More often than not, cost claims which are legitimately due and entitled to the contractor for works done, or for loss and expense incurred arising from disruption, prolongation and delay, are surprising not successfully recovered, whether in whole or in part, or none at all. One of the main reasons attributing to such scenario, is due to either the contractor, employer or the consultants and their poor understanding of and adherence to established and proper contractual rubric that is embodied in the building construction contract for the works. This paper explores some such pitfalls that could very well spell the ultimate financial disaster for many contractors, and highlights salient and essential intimations that contractors and consultants should watch out for.

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The Calculation Method for Prolongation cost of Sub-Constract in Domestic Public Construction Project (국내 공공 공사 하도급계약 공기연장 추가간접비 산정방안)

  • Jeong, Kichang;Lee, Jaeseob
    • Korean Journal of Construction Engineering and Management
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    • v.19 no.4
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    • pp.61-69
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    • 2018
  • Research on additional indirect cost due to construction period extension in general contracts has continuously been active whereas the same for the subcontract operations has not been. In this research, we review previous research on evaluation methods for additional indirect costs which are widely being used on construction sites as well as previously proposed methods altogether, applying them to analyze model-cases for comparison. We acknowledge that this pattern for construction cost fluctuation over the construction period demonstrates an S-curve. This S-curve shaped indirect cost occurrence is then used to generate model-cases that are used throughout the research which models we applied previous evaluation methods on. Finally in pursuit of finding out some problems of evaluation methods, we came to derive a conclusion that the "Average Actual Cost Evaluation Method on Extended Duration," which, in turn, were proved to be valid for application on general contracts, was also valid for general application on subcontractor operations.

The Estimation Analysis Method of the Annual Operation Cost of Korean High-rise Condominiums

  • Ko, Eun Hyung;Choi, Jun Young
    • Architectural research
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    • v.7 no.1
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    • pp.11-18
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    • 2005
  • In today's building industry the emphasis has been geared more towards construction, thus building maintenance and life cycle have been neglected until now. A direct result of this neglect is the rapid aging of building, which leads to more cost-effective decision making methods for the prolongation of building life span. The following study is conducted in the area of Daegu and Seoul in order to develop the estimation analysis method of the annual operation cost of the Korean high-rise condominiums for the cost-effective decision making support through mathematical and statistical analyses including the present value and standardized measurement corrections. Based on the assumption that the life expectancy of the high rise condominium is 50 years, initial cost is ₩421,212/$m^2$, and a total sum of yearly operation cost during life expectancy is ₩2,154,499//$m^2$), yearly accumulated operation cost is shown as below: $AOC=0.7097t^4-38.803t^3+806.95t^2+11045t-496.52$ ($R^2=0.98$) (Here, AOC = Accumulated Operation Cost, t = given years)

Improvement of the Calculation Standard for Prolongation cost of Domestic Public Construction Project (국내 공공 공사 공기연장 간접비 산정 기준 개선방안 - 국가계약법 및 지방계약법 산정기준의 비교 고찰 -)

  • Jeong, Kichang;Lee, Jaeseob
    • Korean Journal of Construction Engineering and Management
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    • v.17 no.4
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    • pp.95-102
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    • 2016
  • Recently, a research regarding calculation of construction time extension-oriented incidental costs has been intensively suggested in quantitative aspect and recent studies on system improvement has been made continuously. In the case of Domestic Public Construction Works, State Contract Act is applied when the client is government whereas Local Government Contract Act is done when the client is local government, but more meticulous study is required because improvement plan is not proposed even there is a clear demand for improvement of these problems on calculation standard. Thus this study suggested appropriate standard by comparing each the calculation standards followed by 'State Contract Act' and 'Local Government Contract Act', considering the problems accorded, and analyzing field cases. Calculation method of other expenses was differently regulated as the revision of each regulation, and this demonstrates that there is a difference of actual cost from 12.37% to 24.95%. It is shown that less cost of construction time were calculated than actual cost according to a problem of calculation method by State Contract Act as the rate at the time of contract to be applied in other expense rate. This study suggested the rate against incidental cost and the rate of other expense per day against total construction cost as an appropriate rate calculation for other expense based on field database.

Improvement of the Calculation Standard for Prolongation cost of Long-term Continuing Contracts Construction Project (장기계속계약공사의 공기연장 추가간접비 산정 개선방안)

  • Jeong, Kichang;Lee, Jaeseob
    • Korean Journal of Construction Engineering and Management
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    • v.18 no.2
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    • pp.30-37
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    • 2017
  • In Korea, additional indirect costs generated from the time period extension of public construction projects have been studied. Practical claims against such costs are increasing. There are no clear criteria for calculating the delay cost caused by the extension, and thus calculation methods differ across entities. Logical valid calculation methods have also not been researched. Further, there are no Korean studies on the additional indirect cost caused by a suspension in a public construction project on a long-term continuing contract. The purpose of this research is to propose a method of calculating the indirect cost incurred by construction time extension that reflects the characteristics of Korean public construction projects. The cost patterns generated during construction periods were analyzed, and then the current criteria of calculating the indirect costs caused by the extension were examined. Following this, actual conditions and practices in the field were surveyed and the current calculation method was applied to a model case to compare the actual cost and that determined from the current calculation method. Issues with the current method were identified by this comparison. Based on this, this research proposes a method of calculating the total actual cost caused by a suspension in a public construction project that is appropriate for calculating the additional indirect cost generated by a suspension in a public construction project on a long-term continuing contract.

Effects of Autotransfusion Using Cell Saver in Cardiovascular Surgery (심혈관수술에서 cell saver를 이용한 자가수혈)

  • 구자홍
    • Journal of Chest Surgery
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    • v.26 no.4
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    • pp.255-259
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    • 1993
  • The efficacy of the autotransfusion system is a reducing the need of intraoperative and postoperative transfusion in cardiovascular surgery. Between January 1990 and December 1991, we experienced 23 cases of autotransfusion using Haemonetic Cell Saver in cardiovascular surgery [Experimental group]. Another 13 cases which were taken similiar operations without Cell Saver during same period [Control group]. The amounts of blood transfused are 4.23 1.84 units in Control group, 2.82 1.84 units in Experimental group. Postoperatively, both groups showed decreased platelet counts, mild prolongation of prothrombin and partial thromboplastin time compred to preoperative value [P<0.001], but there were no significant differences between two group [P=NS]. Plasma hemoglobin was markedly increased in Experimental group compared with Control group [p<0.05]. In Experimental group, amount of average processed blood by Cell Saver was 700ml of which composition was hemoglobin 17mg/dl, hematocrit 50.0%, RBC 5,590,000/ml, WBC 7500/ml, and platelet 40,000/ml. The culture of the processed blood revealed no growth of the organisms. Conclusively, Cell Saver autotransfusion system is a simple, safe, and cost effective method especially in the cases associated with massive bleeding. However, it requires familiarity with system, gentle manipulation of suction tip, and careful selection of candidates to obtain maximal benefits .

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"Standard Model" approach to building projects in the UK and potential role of project team to mitigate any local difference~from international developer's perspective

  • Tanaka, Koji
    • International conference on construction engineering and project management
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    • 2020.12a
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    • pp.425-432
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    • 2020
  • In order to improve the sustainability and smart construction, it is discussed arguably that developing and applying consistent "standard model" to plan business, design, construct and operate a building is considered to be one of the effective and efficient approach. The scope of this article is to examine, from the international developer's perspective, the "standard model" approach of a hotel brand to building projects in the UK, and also to explore potential role of project team to mitigate any local difference at the project level. These projects are developed by the same developer adopting the same business plan, design and operation to each project. In order to clarify the actual and likely difference in construction results, reference is also made to those building projects located in other geographical markets including Japan, Germany and USA, and focus is given on the analysis of its programme and cost. Principle findings are that there exists geographical difference especially in environmental and planning system, and that major local difference is found at least in the programme at the design stage. In contrast, the difference in the building cost itself may not be necessarily considered major if currency exchange rate being taken into account appropriately. It is also observed that there were cases where any difference in the programme was mitigated by taking different approach to procuring and defining roles of management and professional team at the project level. In conclusion, from the international developer's perspective, the geographical difference of the "construction system" surrounding building projects can typically lead to major prolongation of programme, however, these different construction results could be mitigated at least to a certain extent by introducing appropriate changes to the role of project team.

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Effect of Packaging and Loading Conditions on the Quality of Late Autumn Chinese Cabbage during Cold Storage (포장 및 적입 방법이 늦가을배추의 저온저장 중 품질에 미치는 영향)

  • 김병삼;남궁배;김민정
    • Food Science and Preservation
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    • v.8 no.1
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    • pp.23-29
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    • 2001
  • To extend the freshness of late autumn Chinese cabbage, the packaging and loading effects on the quality were investigated during cold storage. Judging from overall quality during storage period, late autumn Chinese cabbage could be stored by 3 months at 0$\^{C}$ cold storage. However, late autumn Chinese cabbage was not acceptable for long-term storage because of its marketability and the storage cost. Among 3 packaging methods(PP-net, carton and plastic container) for stored Chinese cabbage, plastic container and carton were more effective than PP-net packaging for the freshness prolongation. Gas composition in the plastic bags during storage was not significantly different among packaging conditions and O$_2$ and CO$_2$ concentrations were 13∼18% and 0.75∼7.48%, respectively, MAP with plastic film was effective for the quality retention because of low oxygen composition and high humidity condition in the bags.

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