• Korean Journal of Construction Engineering and Management
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• v.21 no.4
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• pp.82-89
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• 2020

Article 64 of the Enforcement Decree of the National Contract Act The requirement of the pre-amendment statute related to the adjustment of the contract price was 5% or more of the price fluctuation rate from the date of the contract. However, the meeting requirement was changed from 5% or more to 3% or more from the date of signing of the Presidential Decree No. 19035 to 2005. 9. 8. The method of adjusting the contract amount was also changed to determine the contractor's desired adjustment method at the time of contract. Alleviating these requirements and revising the empowerment of contract partners is intended to prevent difficulties in achieving smooth objectives by applying to public construction contractors without unfairly benefiting or unfavorable to contract partners. Even if the standards are relaxed and the rights are secured as described above, if the existing provisions for the adjustment of price fluctuation are applied, unlike the original purpose of the government system, the Korea Bank's price economic statistics classification method and the contract construction classification criteria applied in public construction work Due to the inconsistency, it can be seen that the amount of adjustment for price fluctuation by construction type is excessive and underestimated. Therefore, the purpose of this study is to analyze problems through cases and to make appropriate construction cost adjustment through improvement measures.

• Journal of architectural history
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• v.15 no.5
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• pp.19-39
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• 2006

This study deals with construction contract bid-rigging by Japanese contractors who monopolized the construction market of the Korean Peninsula during the Japanese colonial rule, and investigates the abuses of the contract bid-rigging. First of all, construction contract bid-rigging in Korea was triggered by Japanese construction contractors and contract brokers, who had savored the benefits of bidrigging in Japan and had repeated the bid-rigging in Korea since 1903. Second, the agency played a significant role to mediate construction contractors, and existed throughout the Japanese colonial rule on the Korean Peninsula with changing their names. Most of them were engaged in major contract bid-rigging scandals. Among them was Construction Association of Korea, which existed for over 13 years. The agencies had took part in governmental services since the mid-1930s when Japan exploited Korean people during wartime, and focused on sweating human resources for the constructions. Third, one of the biggest construction bid-rigging scandals during the Japanese colonial rule was "the 1st and 2nd scandal on Daegu construction contract bid-rigging." Indeed, the second scandal paved the way for the serial scandals: "Kyeongseong construction contract bid-rigging scandal", "Busan construction contract bid-rigging scandal", and other cases throughout the nation. Fourth, along with the contract bid-rigging cases related to the Japanese Government-General of Korea and local authorities, bid-riggings firmly took rooted in local governments' farmland reclamation projects in the 1920s and the poor relief services in the 1930s. The "bid-rigging charges" forced contractors to compensate their losses with exploiting material costs and labor costs, generating serious problems. The construction contract bid-rigging enabled Japan to monopolize the construction industry and to sweat farmers on the Korean Peninsula. Against this backdrop, contract bid-rigging by Japanese construction contractors during the its colonization made Korean contractors ruled out, and helped Japanese monopolize the industry. A large amount of bid-rigging charges drove Japanese contractors to do fraudulent work with cheap materials and to exploit Korean labor force.

• Journal of the Korea Institute of Building Construction
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• v.3 no.1
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• pp.155-160
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• 2003

The Korean economic crisis hit badly the local construction industry, especially during the year of the 1998 when the country took the IMF bailout proframme. Under the poor business environment, such as reduction of construction investment, financial difficulty from high interest rate, and increasing bankruptcies, restructuring measures were repuired for survival of the industry. It is obvious the restructuring process is essential for the future business success. regardless of the financial crisis. With this background, this research aims the contribute to improved construction management structure and strengthened international competitiveness of the industry through the cost reduction and productivity enhancement, by analysising and proposing and optimal level of the manpower structure of construction management organization With the subject of 24 construction fields of apartment houses in the capital region as of January 1, 1999, constructed by OO company having leaded the construction industry of the country so far now, the researcher performed the on the spot survey regarding the organization/manpower structure and construction contract amount.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2012.11a
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• pp.143-145
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• 2012

Overseas construction industry has performed the leading role in the economic development. In this study, effect of international oil prices, GDP and price index, on the regional international construction contract amount is compared and analyzed. Overseas construction market received a devastating effect due to the 1997's economic crisis. However, the market has remained stable since 1998, and since 2005, the trend has been a surge in new orders.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.699-704
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• 2005

Normally, monetary penalties for breach of agreement will be stipulated in the contract. The contractor parties, who fail to fulfill the agreement, are required to pay the other parties a certain amount or proportion of money as a fine. However, it is worth our study - whether or not the scope of monetary penalty implementation and bases for determination of a fine will cover the losses of social and administrative costs incurred by the interruption of the contract. This research is about the best timing for government to cancel the freeway repair work contracts. Under the goal of the maximum social welfare, the limitation of government spending for the social and administrative costs invoked by interruption of contracts will have to be considered to attain the best timing of contracts' suspension or deferment. According to the factors of social and administrative costs, the best time point is calculated to reduce the loss of the aforesaid costs, which can also be used as theoretical basis for the future road-widening construction at home.

• Architectural research
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• v.8 no.1
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• pp.69-76
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• 2006

The purpose of this study is to suggest policies to improve the price escalation system in a construction contract through a Policy Delphi technique. The Delphi, including two times questionnaires and a group discussion, was conducted by joining 14 experts. Also, the escalation provisions of various countries were examined. Results of the Delphi showed that the minimum fluctuation rate for price escalation was desirable at a level of 3%. To compute the fluctuation rate, calculating the price fluctuation of overall articles was more desirable than using price indices. A bidding date was more reasonable as the initial date of change in price. Losses caused by price change should be shared between contractor and owner; therefore a deduction rate should be introduced in price escalation. Meanwhile, overhead and profit should be adjusted in proportion to the fluctuation rate; but advance payment or the delayed construction amount should be deducted from the adjusted amount.

• Journal of the Korea Institute of Building Construction
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• v.21 no.2
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• pp.157-163
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• 2021

The accident rate is obtained by dividing the number of accidents by the number of regular workers. In the case off construction work, however, the accident rates are not accurately figured out, because they use the approximate number of regular workers, which is estimated based on the amount of construction work and the labor ratio. In addition, the current accident rate estimation method does not reflect the characteristics of construction types, such as building, civil, plant, etc. This study is conducted with the aim of presenting a supplementary method of accident rate assessment that incorporates the characteristics of type of construction. For the purpose of this, correlation and regression analysis are executed to verify the relationships between number of accidents and the amount of construction contract, and several equations are derived which shows the relationship between the number of accidents by accident types and amount of constract by construction types. The result shows that the non-residential work amount and the number of accidents showed a proportional relationship, while the civil work amount and the number of accidents showed an inversely proportional relationship. The results of this research are expected to calibrate the construction accident rates and to be used as an auxiliary indicator to determine the trend of annual accident rates by comparing the values with usual years.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.142-148
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• 2011

Recently, much attention has been increasingly paid to the efficiency of the delivery system in order to manage construction project in a smooth and effective way. The integrated plan in consideration of the life cycle of building is required for the effective and integrated management of information in a huge amount. To this end, collaboration between each field is indispensable from the beginning of project. But there is a limitation that the designer and the constructor sign the contract separately in the conventional delivery system. In the US, the recent trend is that the Integrated Project Delivery (IPD) has been introduced to improve the effectiveness of project management in an increasing number of the cases where project is implemented by utilizing the IPD. In Korea, there is also an increasing need to introduce the IPD for the integrated project management. Consequently, the purpose of this study is to examine and analyze the laws and the contracts that are applied to domestic cases of placing order and signing contract based on the concept and principle of the IPD before the actual introduction of the IPD. Based on such examination and analysis, this study intends to figure out the constraints to the introduction of the IPD. It is expected that the results of this study will be used as basic data for IPD-related study in the future.

• Korean Journal of Construction Engineering and Management
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• v.12 no.2
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• pp.3-11
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• 2011

There are several causes to recalculate the contract amount in public construction projects. Among them, the escalation clause was introduced in 1969 and now the condition to recalculate the cost is effective after 90 days from the date of contract and the rate of fluctuation should be more than 3% from the date of bidding. The two calculation methods for the rate of fluctuation are item-adjustment and index-adjustment. According to the results of investigation into 4 public institutions and 163 projects, all of them have used the method of index-adjustment and the rate of projects that spend over 6 months obtaining the approval of contract amount adjustment is more than 90%. The reason for spending lots of time is caused by problems of the calculation method on the price fluctuation rate. Therefore, it is necessary that the calculation method should be diversified to cope with the problems and a option of the builder should be expanded as well. Furthermore, if the way to apply correction factors to construction price index and average index based on the producer and consumer price index made by the bank of Korea is added, then the duration will be reduced without additional expenses. This study proposed the diversification of the calculation method using price fluctuation rate and builders' expanded options as improvement on the managerial method of Price Fluctuation System for the prompt and efficient contract amount adjustment.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2019.05a
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• pp.80-81
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• 2019

Change requests occur persistently in the construction phase of a construction project. The law requires that the contract amount be adjusted in accordance with the relevant regulations when there is a change in the construction amount due to the design change in the construction contract. SAVE international, on the other hand, defines the value methodology as a systematic and structured approach to improving projects, products and processes. Design Changes in the construction projects require organizational efforts to improve value and quality. However, the law does not include change requests in which the VE object is fixed and related data is collected and function analysis can be derived in a short time. Therefore, it is necessary to apply VE to the design change procedure, which can further improve the value of construction work. The application derived from this study need to be presented as simply as possible without compromising the basic concept of VE. If the application is extended to the field and proved to be effective, it is expected to contribute to the overall value of construction work.