• Korean Journal of Construction Engineering and Management
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• v.11 no.3
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• pp.105-114
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• 2010

As the Korean economy went into a recession because of the global financial crisis in 2008, in order to vitalize the Korean economy, the government raised SOC budget and made its execution earlier. To prevent increases in budget for the government financial investment projects, the government controlled the project cost of SOC construction projects by enacting 'Guideline for total project cost management' in 1994 and complementing the relevant system. However, different from government intention, the total project cost of SOC projects were increased drastically. Hence, the government authorities and research institutions insisted the necessity of supplementation and improvement for the total project cost management system. This research is to provide the improvement for the total project cost management system of domestic SOC projects. In this research, As-Is Model was adjusted considering status of the total project cost management in the current SOC projects. Also the cost management of construction projects between domestic and other developed countries was studied, analyzed and compared. Based on the above, problems related to total project cost management of domestic SOC projects were found out and an improved total project cost management was provided to improve these problems.

• Korean Journal of Construction Engineering and Management
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• v.14 no.3
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• pp.12-21
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• 2013

Total Project Cost Management System(TPCMS) was introduced with the purpose of increasing the efficiency of cost control for public construction project in 1994. In this paper, general perception of participants of the public construction project on the TPCMS was examined, and the problems in implementing the TPCMS was figured out through expert interviews and survey. Then better ways to implement the system were drawn based on the problems. To effectively manage the cost of public construction project, basically project cost should be estimated accurately in planning stage and managed based on it to have a project complete within the budget. In addition, the cost need to be managed in more systematic ways in terms of data collection and analysis, and the autonomy in managing the project cost given to the project owner needs to be expanded. Most of all, proper budget should be provided to prevent a project from delay through setting the priority of projects and proper budget allocation based on the priority.

• Architectural research
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• v.26 no.3
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• pp.63-72
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• 2024

Due to budgetary constraints, national landmarks symbolic of country's power and cultural stature face significant limitations in their creation. Within the current total project cost management system, there are considerable restrictions on constructing cultural facilities with various forms and designs, and there exists a societal need for a design-first administrative system for public buildings that demand artistry and symbolism. This study explores the potential and limitations of applying exceptions to the total project cost management system through the designation of representative artistic architecture. It discusses directions for the implementation of government-level systems. To this end, a literature review on budget management and national project management was conducted, and an analysis of related policy cases both do-mestically and internationally was performed to select applicable examples and consider their implications for policy utilization within the domestic context. The results discuss the necessity of public art building construction, the issues with construction budgets, and the in-volvement of world-class architects. Analytical implications include the need for realistic budget setting for construction projects, establishing clear promotion criteria, and creating a phased process and expert evaluation panel.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.168-175
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• 2011

Construction accidents are major problem in Turkish Construction industry and especially fatally rates are very high. Current legislative system on occupational safety in Turkey enforces employers to implement safety measures as well as safety management systems. However level of consciousness in the industry is unsatisfactory and safety are perceived as extra cost and unnecessary expenditure. Moreover, especially in small residential building constructions which have a big share in the industry and unfortunately safety measures to mitigate or abate construction risks do not exist. The study focuses on small residential building construction sites and in the scope of this study, thirty building projects are examined. For each building project, project cost including labour and material costs, service and consultancy costs for mechanical, electrical systems as well as architectural and structural services, costs for supervision and finally general expenditures for construction site facilities were calculated. On the other hand, occupational safety costs for personal protective equipment, collective protective measures, consultancy and training were determined. Work breakdown structures were established and for each work item firstly occupational risks were evaluated and furthermore according to risk scores safety measures to be implemented were defined and related costs were calculated. The study gave results for total safety cost on average, in terms of percentage of total project cost (3.73% of total project cost), safety cost per man-hour (0.40 USD) and safety cost in terms of unit construction area (11.60 USD per square meter). Since safety management is a part of whole project management process, study gives suggestions and techniques to calculate safety costs and implement safety measures as a part of project management service for professionals. Authors believe that suggested approach may easily developed by the usage of more data to establish a model for estimation not only for building construction sites but also for all construction projects.

• Korean Journal of Construction Engineering and Management
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• v.21 no.2
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• pp.30-38
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• 2020

Inadequate cost management has widely been recognized as one of the most problematic areas in the Korean construction industry as many believes that public cost references are not reasonably reflecting the market conditions. 'Total Project Cost Management Guideline' developed by Ministry of Economy and Finance(MOEF) to govern public budget control has been identified as one of the main reasons for this problem. This study attempts to thoroughly review 'Total Project Cost Management Guideline' itself and quantitatively analyze the impact of it on project cost during procurement process. Different procurement methods are considered including turnkey & alternative, private contract, qualification examination, and lowest price bidding system in this quantitative impact analysis of 'Total Project Cost Management Guideline'. Analysis results shows that this governmental process works mainly as a constant cost-cutting tool throughout the procurement process.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.1
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• pp.17-24
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• 2016

Many organizations have transformed their business in order to survive and compete in the future. They generate projects by creating a vision, using strategies and objectives with funds aligning strategies and make efforts to complete them successfully because project success leads to business success. All projects have triple constraints such as scope, time, and cost to be completed. Project cost performance is a key factor to achieve project goals and which is mostly related with risks among various cost drivers. Projects require a cost estimation method to complete them within their budget and on time. An accurate budget cannot be estimated due to the uncertainties and risks. Thus some additional money should be funded in addition to the base budget as a contingency reserve for identified risks and a management reserve for unidentified risks. While research on contingency reserve for identified risks included in project budget baseline have been presented, research on management reserve for unidentified risks included in total project budget is still scarce. The lack of research on estimation method and role of the management reserve have made project managers little confidence to estimate project budget accurately with reasonable basis. This study proposes a practical model to estimate budgets including contingency and management reserves for not only project cost management but also to keep the balance of organization's total funds to maximize return on investments for project portfolio management. The advantages of the proposed model are demonstrated by its application to construction projects in Korea and the processes to apply this model for verification are also provided.

• Journal of the Korean Operations Research and Management Science Society
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• v.20 no.1
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• pp.85-99
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• 1995

Increasingly, risk analysis is becoming important ingredients in achieving the successful implementation and application in the area of the project management. The project management system is designed to manage or control the project resources on a given activity within time, cost and performance so called TPPM (Total Productive Project Management). In this research, a risk analysis model misproposed to identify potential problem areas, quantify the risks, and generated the chice of the action that can be taken to reduce the risk. In addition two analysis models are proposed : 1) risk factor model and 2) network simulation model using VERT (Venture Evaluation and Review Technique ). The objective of the remodels is to estimate the schedule, cost performance risks. These proposed quantitative models for project risk analysis are proving its value for the project managers who need to assess the risk of changes in cost, schedule, or performance. The proposed models will be used in the area of project selection, evaluation and the allocation of project resources.

• Korean Journal of Construction Engineering and Management
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• v.21 no.1
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• pp.3-11
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• 2020

In large public construction projects with a certain size or larger that need to be carried out over a number of years, the Authority must secure a budget for construction project management activities by the construction manager. There is no problem if the project management budget secured by the issuing Authority and the project management budget executed by the issuing Authority are the same, but if not, various problems will arise. Therefore, in this study, the following measures were proposed to improve the system for efficient operation of construction project management: First, the construction project management terms and tasks specified in the statutes and the guidelines of government agencies should be unified and the standard for calculating consideration should be unified. Second, the total project cost management guideline should be specified so that the missing construction project manager can receive compensation for the technical proposal. Third, if the project cost is changed in the long-term continuous construction project, the construction project management expense should be adjusted accordingly. Fourth, if construction project management service is required from the Authority, the basis for consignment to a specialized institution should be specified in the total project cost management guideline.

• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.2
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• pp.163-175
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• 2007

[ $ulcorner$ ]Cost-Effectiveness Analysis$\lrcorner$ has been wifely used to evaluate economic efficiency of R&D projects, but most of cost-effectiveness evaluation systems have some problems such as systematic method for setting and evaluating cost factors, estimation of single effect on each R&D project, and estimation of cross effects among R&D projects. To solve these problems, we have designed a new evaluation indicator called a $ulcorner$Cost-Cross Effect Integration Indicator$lrcorner$ including cross effects developed in this research. The major research findings are summarized as follows : (1) $ulcorner$Coist Estimation Model$lrcorner$, which estimates the cost factors divided into two classes of assembly product and system product and then integrates the total cost values, has been designed. (2) A new method for estimating parameters of cross effects among R&D projects has been developed. (3) $ulcorner$Cross Effects Estimation Model$lrcorner$ to estimate multi-effects and cross effects by completion time among several projects has been designed. (4) $ulcorner$Integration Estimation Indicator$lrcorner$ for setting priority on a project group has been extracted by combination of total cost value and total effect value.

• Archives of design research
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• v.12 no.3
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• pp.227-234
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• 1999

We paid attention to the fact that a project will always tend to increase in size even if its scope is narrowing. The complexities and multidisciplinary aspects of projects require that the many parts should be put together so that the prime objectives- performance, time, and cost- are met. These aspects lead to the use of teams to solve problems that used to be solved by individuals. Firstly, We surveyed the design companies and their clients on the design projects, and categorized the design task into 5 phases, that are marketing, planning, idea development, presentation, and follow-up. Among the phases, the presentation has the most difficult task, longest processing time, and highest cost, whereas idea development phase has relatively low cost, longer processing time, and more difficult task. Most of the companies used to be faced several bottlenecks on their design projects - time control, budget control, and resource control. Secondly, for improving the project managing process, we adopted that dividing and analyzing the sub critical paths may help in the effective managing.(Badiru, Adedeji B., 1995) Some critical paths require almost as much attention as the critical path since they have a high potential of becoming critical when changes occur in the network. Therefrom we suggest the Total task weight(Gt) as a management formula for the design project management.${Gt=\mathrm{T}\ast\leftthreetimes\ast1/100}$<\TEX> ( Gt = Total task weight, mathrm{T} = Task Weight, \leftthreetimes= Criticality ) Thirdly, In order to support to managing for the design projects, we set up an application system, which is graphically planning and implementing a complex undertaking. It is helpful to make the control of a project easy. The DPMS(Design Project Management System), which has two sub system. One is Project Screening System(PSS), and another Project Managing System(PMS). In PMS, we divided the design project into three modules; Project Planning, Project Implementation, and Project Evaluation. As a result, the DPMS will contribute to supply the control of a project easily and effectively. Also teams are used for making decisions and taking action with the DPMS. But we need to get further studies on the relationships between the whole project and its tasks.