• Title/Summary/Keyword: construction contract amount

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Orders Status Analysis on the Successful Bidder Decision Method of Turnkey Alternative Tendering Construction (턴키·대안입찰공사 낙찰자 결정방식에 의한 수주현황 분석)

  • Park, Hong-Tae;Lee, Yang-Kyu
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.33 no.2
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    • pp.771-780
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    • 2013
  • Inspection system which was performed in the past selected the final winning bidder by separating Pre-Qualification, the basic design evaluation and price evaluation. However, turnkey and alternative bidding construction has selected way to determine the successful bidder as the best design and the most low cost method, comprehensive evaluation method (bid price adjustment, design score adjustments, weights standard), the best design and the fixed amount method from january 1, 2010 to the present. Due to these institutional problems, orders institutions were often a way to determine the successful bidder to apply differently for identical or similar construction. Therefore this study winning bidder selection criteria through analysis of construction the number and construction order performance, order performance by work division and institutional orders, the weights bidder order performance and orders status of turnkey alternative tendering construction to civil part performed in domestic.

Estimating Productivity of AL-Form Operation Using Web-CYCLONE System (웹싸이클론을 활용한 알루미늄 폼 공정의 품셈산출)

  • Lee, Dong-Eun;Kim, Yong-Woo;Son, Chang-Baek
    • Korean Journal of Construction Engineering and Management
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    • v.14 no.3
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    • pp.115-122
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    • 2013
  • Construction Standard Productivity Manual (CSPM) has been used for estimating the contract amount of public construction projects. CSPM has been annually either revised and/or newly enacted with high costs. Therefore, This study makes use of CYCLONE, which is a simulation modeling and analysis system specialized in construction operation, to improve the revising and enacting processes of CSPM. This paper presents the CSPM revision module that is an Add-in to Web-CYCLONE. The new module can be effectively used to incorporate the auxiliary tasks and the non-productive tasks into AL-Form operation model. The outputs obtained from the models using he CSPM revision module and from work sampling were compared to verify the usability of the add-in modules. This study verifies that the new module can effectively assist enacting and/or revising CSPM.

TREE FORM CLASSIFICATION OF OWNER PAYMENT BEHAVIOUR

  • Hanh Tran;David G. Carmichael;Maria C. A. Balatbat
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.526-533
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    • 2011
  • Contracting is said to be a high-risk business, and a common cause of business failure is related to cash management. A contractor's financial viability depends heavily on how actual payments from an owner deviate from those defined in the contract. The paper presents a method for contractors to evaluate the punctuality and fullness of owner payments based on historical behaviour. It does this by classifying owners according to their late and incomplete payment practices. A payment profile of an owner, in the form of aging claims submitted by the contractor, is used as a basis for the method's development. Regression trees are constructed based on three predictor variables, namely, the average time to payment following a claim, the total amount ending up being paid within a certain period and the level of variability in claim response times. The Tree package in the publicly available R program is used for building the trees. The analysis is particularly useful for contractors at the pre-tendering stage, when contractors predict the likely payment scenario in an upcoming project. Based on the method, the contractor can decide whether to tender or not tender, or adjust its financial preparations accordingly. The paper is a contribution in risk management applied to claim and dispute resolution practice. It is argued that by contractors having a better understanding of owner payment behaviour, fewer disputes and contractor business failures will occur.

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CM Prospects and Strategies Based on Contract Statistics : 1997 through 2014 (CM산업 수주실적 분석을 통한 CM기업의 발전 방안 - 1997년 ~ 2014년 실적자료 기반 -)

  • Ha, Jiwon;Jung, Youngsoo
    • Korean Journal of Construction Engineering and Management
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    • v.17 no.5
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    • pp.97-107
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    • 2016
  • CM services have been focused on the advancement of the CM industry and expansion to overseas market based on CM capabilities. However, there has been lack of quantitative and comprehensive research to investigate current CM trends and prospects for improving competitiveness. In this sense, the purpose of this study is to statistically analyze total of 3,453 CM service contracts over the past 18 years (between 1997 and 2014) in term of market type, contract size, owner's type, commodity type. Finding of this research reveal that 1) compared to 2005, CM market size in 2015 increased as much as 2.5 times, and that 2) domestic CM projects count for 87.5%, architectural project 88.4%, less than 1 billion won small contracts 75%, respectively. Also, recently as CM company are developing capability and competitiveness, 1) overseas CM market share has grown up to 20% among total CM contract amount, and 2) CM contracts by private owners has increased 3 times demanding the total management services based on high technical capability. Additionally, the result of this paper supports the growth path model proposed by Jung et al. (2014), where a path from Domestic Public (DP3) and Domestic Private (DC2) CM projects towards the expansion to International Private (IC5) contracts was quantitatively analyzed. Implications for other practical issues are also briefly discussed.

A Study on the Prevention for Differing Site Conditions Claims - Focused on Design-Build Project in Public Sector - (현장여건상이로 인한 클레임의 예방에 관한 연구 -공공부문의 설계$\cdot$시공일괄공사를 중심으로-)

  • Chung Myung-Woo;Lee Hwa-Young;Seo Yong-Chil;Hyun Chang-Taek
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • autumn
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    • pp.46-53
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    • 2001
  • Differing Site Conditions('DSC') Claims among construction claims are on the increase as a direct result of the steady construction of Social Overhead Capital Facilities initiated by Government. As DSC claims generally became apparent during the intial stage of the construction project, it is necessary to timely review and study the proposal on the prevention of DSC claims because delayed settlement will incur more substantial damages to all parties concerned. This research is focused on the identification and analysis of the causes for DSC claims as applicable to design-build project in public sector and it presents the possible short term, medium and long term proposals on the improvement of causes related with DSC claims. The major results of this research are summarized as follows: 1. Improvement of contractor's tender practice 2. Contractor's division of responsibility on the site survey 3. Improvement of owner's exculpatory clause 4. Flexibility on the adjustment of contract amount The proposals stated above could be useful in resolving the DSC claims between owner and contractors.

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Development of Risk Assesment Index for Construction Safety Using Statistical Data (통계자료를 활용한 건설안전 위험도 평가지수 개발)

  • Park, Hwan-Pyo;Han, Jae-Goo
    • Journal of the Korea Institute of Building Construction
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    • v.19 no.4
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    • pp.361-371
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    • 2019
  • In 2017, the ratio of the number of victims and deaths in the construction industry was the highest with 25.2% and 29.6%, respectively. Especially, as safety accidents at construction sites continue to increase, the economic loss is greatly increased too. Therefore, in order to prevent safety accidents in the construction work, the safety risk assessment index by type of construction was developed, and the main results of this study are as follows. First, 17 factors related to safety accidents at construction sites were derived through survey and interview survey, and this study suggested 9 items(process, type of construction, progress rate, contract amount, number of floors, safety education, working days and weather) throughout the expert advisory meeting. Second, the risk assessment index for safety accidents was developed based on the ratio and intensity of safety accidents. Third, to verify the risk assessment model, the construction safety risk assessment index by type of construction was derived by surveying and analyzing the statistics of the construction accident. In addition, the risk strength was calculated by dividing human damage caused by construction safety accidents into those killed and injured. The risk assessment index based on the frequency and intensity of safety accidents by type of construction is expected to be utilized as basic data when assessing the risk of similar projects in the future.

Overseas Construction Order Forecasting Using Time Series Model (시계열 모형을 이용한 해외건설 수주 전망)

  • Kim, Woon Joong
    • Korean Journal of Construction Engineering and Management
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    • v.19 no.2
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    • pp.107-116
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    • 2018
  • Since 2010, Korea's overseas construction orders have seen dramatic fluctuations. I propose causes and remedies for the industry as a whole. Orders have recorded an annual average of $63.8 billion dollars from 2011 to 2014, reaching its highest at $71.6 billion dollars(2010) which marked the peak of Korea's overseas construction. However, due to a decline in international oil prices, starting in the last half of 2014, Korea's overseas construction orders have followed suit recording $46.1 billion dollar in 2014, $28.2 billion dollars in 2016, and $29.0 billion dollars in 2017. Facing uncertainty in Korea's overseas construction market, caused by continued slow growth of the global economy, Korean EPC contractors are at a critical point in regards to their award-winning capabilities. Together with declining oil prices, the challenges have never been bigger. To mitigate the challenges, I would suggest policy direction as a way to grow and develop the overseas construction industry. Proper counterplans are needed to foster Korea's overseas construction industry. Forecasting total order amount for overseas construction projects is essencial. Analyzing contract award & tender structure and its changing trends in both overseas and world construction markets should also be included. Korea has great potential and global competitiveness. These measures will serve to enhance Korea's overall export strategy in uncertain overseas markets and global economy.

A Study on the Problem and Countermeasure of Concealment of Industrial Accident in Construction Site (건설업 산재 은폐의 문제점과 대책에 관한 연구)

  • Choi, Man-Jin;Kang, Kyung-Sik
    • Journal of the Korea Safety Management & Science
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    • v.10 no.3
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    • pp.29-33
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    • 2008
  • According to statistics released by the Ministry of Labor for the past 6 years, work-related accidents in the construction industry have been on the continued increase, resulting in social and economic losses that are difficult to determine at an exact amount. However, the number will likely get much bigger if unreported cases are included, considering the fact that the aforementioned statistics are based soley on the applications filed with Korea Workers' Compensation and Welfare Service. The practice of businesses choosing not to report and dealing with industrial accidents in an unauthorized manner is defined as "concealment of industrial accident". The reason the employers tend to engage in the concealment practice even at their huge cost is a "pre-qualification" scheme for the applicants in the government procurement process. Under the pre-qualification scheme, the applicants with a high rate of industrial accidents receive a low grade and become less attractive candidates in the procurement process, thus losing an opportunity to win a contract. Such failure relates directly to the fate of business organizations, to survive or not. That is why they are making all-out efforts to obtain a high grade in the pre-qualification evaluation. With regard to the accident-concealment problem, the following can be mentioned as preventive measures: (1) To exclude a rate of industrial accidents from the pre-qualification scheme; (2) To strengthen the institution of imposing penalties on the occurrence of industrial accidents; (3) To introduce private insurance system to the current industrial accident compensation insurance; and (4) To give non-recognition treatment to industrial accidents that were not reported upon occurrence. In conclusion, the concealment problem can be resolved if the aforementioned measures are to be taken continuously along with corrective measures against institutional deficiencies.

Analysis and Improving Strategies on Construction Management(CM) Service Adoption in Public Sector Construction (공공부문 건설사업관리(CM)적용 실태 및 개선에 관한 연구)

  • Kim, Jae-Jun;Moon, Hyuk
    • Korean Journal of Construction Engineering and Management
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    • v.7 no.1 s.29
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    • pp.119-127
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    • 2006
  • On December, 1996, the Ministry of Construction and Transportation published Construction Management Service in Construction Industry Basic Act. CM service has been adopted in Korean construction market for ten years by now, however there was no significant change in the construction industry from adoption of CM service. The CM service results aggregated by PCM, from 1997 to 2004, show that CM service adopted projects were 324 in total and the total contract amount was 260million US dollars. These results tell us that adoption of CM service in Korean construction industry is not successful. The research is to survey the factors and the limitations affecting on poor adoption of CM service and to propose the improving strategies on that matter. Therefore, this paper analyzes former papers, laws and regulations on CM and CM service results from PCM as well. From the analysis, we found conflicts in between the laws such as different rules on same matter or missing significant policies in their provisions. Also, problems of industrial organization was found such that the public sector seldom adopts CM service due to their embeded CM function.

The Development of a Web-based Decision Support System for Construction Claim Management (건설 클레임 관리를 위한 웹기반의 의사결정 지원 시스템 개발)

  • Sung, Nak Won;Kim, Young Suk;Lee, Mi Young;Lee, Jung Sun
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.26 no.1D
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    • pp.115-123
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    • 2006
  • Recently, construction claims have been increased for protecting the rights of construction participants and effectively adjusting the changes under the contract. Thus, the importance of claim management has been emphasized in the construction industry. In domestic construction industry, some claim issues involved in construction activities are often being developed into disputes and even litigations because of the absence of methods or systems for the dispute resolution, and the lack of judicial precedents which can be provided as the references for resolving a particular dispute. In general, the judicial precedents related to the disputes and litigations occurred among construction participants would be extremely valuable in evaluating and analyzing current claims issues. However, such useful information has not been effectively accumulated and utilized in resolving the similar or sometimes identical types of disputes, thus requiring a large amount of additional costs, time and efforts. The primary objective of this study is to propose a web-based decision support system for construction claim management, which enables contractual participants to easily access and use the information of the judicial precedents related to the current construction claims. The decision support system is composed of 'prevention' and 'settlement' modules for avoiding and systematically resolving the construction claims.