• Korean Journal of Construction Engineering and Management
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• v.7 no.6
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• pp.132-140
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• 2006

On December, 1996, Construction Management(CM) was introduced in Korean construction industry due to its managerial efficiency proven in the international construction industries. However, It have had serious problems with many regulations, standards, manuals and details of practices considering its constituents and industry conditions. Especially, there were controversial points in the CM fee estimate; difference between the fee on the owner's view point and that from contractor's that impedes appropriate CM services. Therefore, this paper is to analyze public construction projects into Cm fee calculation such as fee as a percent of construction cost, cost plus fixed fee and contract price, and analyzed what is irrationality and why irrationality is made. So it makes a contribution to a study on standards for paper CM fee calculation.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2020.11a
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• pp.179-180
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• 2020

In the budgeting guidelines, there are rules for calculating design fee and direct costs. However, only the design fee is calculated excluding the direct cost, which causes the cost to be insufficient. Therefore, this study is designed to analyze representative cases where direct costs are insufficient, draw out problems, and propose a way to improve design fees.

• Journal of the Korea Institute of Building Construction
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• v.6 no.3 s.21
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• pp.115-122
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• 2006

This study is aimed to get clear model for CM fee level in public construction project. For the practical use and main target, CM for fee contract only is assessed and analysed. Cost estimate by percentage of total contract sum and method based on the historical construction data have significant deficiency. An regression model and probabilistic model are suggested with 9 independent variables. In the case of limited work scope, an element based floor area model is suggested and concluded with fish-bone scheme.

• Korean Journal of Construction Engineering and Management
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• v.1 no.4 s.4
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• pp.91-97
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• 2000

Construction Management(CM) has been introduced in Korean Construction Industry for its merits and benefits proven in International Construction Industries. However, many regulations, standards, manuals and details of practices considering its constituents and industry conditions have not yet to be developed. Of these, the standards and details of CM fee calculation should be developed in order to stretch its application toward public construction sectors as well as the private sectors. This research proposes CMFM(Construction Management Fee Model), a project sensitive matric CM fee model for CM fee calculation. The model calculates CM fees for modular services in a two by two matrix taking project phases on one dimension and CM services on the other.

• Journal of the Korea Institute of Building Construction
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• v.21 no.5
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• pp.469-481
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• 2021

Under Korean law, small-to-medium-sized construction projects with budgets of more than 100 million won and less than 12 billion won must receive technical guidance by a visiting technician belonging to a specialized institution. This study proposed a method for calculating the technical guidance fee to prevent the potential inadequacy of technical guidance when the responsibility providing the technical guidance fee is changed from a contractor to a client. The method simplified the construction works which should receive technical guidance into four sections according to the construction amount. For each section, the number of instances of technical guidance per day provided by the visiting technician and the minimum technical grade of the visiting technician were limited, and the guideline for estimating engineering services fees was applied to calculate the fee per instance of technical guidance. The results show that the proposed method can be applied to the establishment of a technical guidance fee guideline since it well reflects the current fee distribution and K2B analysis results.

• Korean Journal of Construction Engineering and Management
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• v.13 no.4
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• pp.16-24
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• 2012

The objective of this paper is to suggest the improvement of estimating system for construction management (CM) service fee through the analysis of the previous literatures and criteria and case study. In order to do this, this paper considered the relevance of existing criteria to estimate the CM service fee, the condition of input ratio of engineering resources in the real cases, and current utilization strategy of nonresident technical engineers. Based on the analysis, the following problems were identified; a) the different estimating system for CM fee and construction supervision fee, b) impractical estimating system for the CM fee, and c) inappropriate allocation of human resources for CM. Consequently, this paper suggested the following 4 items for the improvement of the existing system; (1) modification of the current structure of CM fee calculation, (2) rationalization of current level of the CM fee which is required to be raised approximately 5.4 percent compared to design or supervision fee, (3) securement of elasticity of the input ratio of engineering resources from the inception phase, and (4) development of the utilization strategy of nonresident engineers based on the technical requirement of the jobsite. Thus, it is anticipated that this research would affect the compensation package of CM in order to make the estimation process of CM service fee more efficient and to revitalize CM as business.

• Korean Journal of Construction Engineering and Management
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• v.9 no.1
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• pp.96-106
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• 2008

The Korean Construction Industry significantly contributed to the Korean economic development not only by preparing the domestic infrastructure but also by successfully conducting various international projects. However, major incidents such as the collapse of Sung-Su Bridge and Sam-Pung Department Store along with stagnation of Korean Economy have raised questions about underlying systematic problems of the Korean Construction Industry. As a solution to resurrect the Korean Construction Industry, the Construction Management (CM) system introduced in late 1990's and increasingly utilized as an innovative delivery system. Despite of the fast growth of CM, the performance of CM has not been up to the hype and low CM fee has been identified as one of the main reasons of unsatisfactory CM performance. Therefore, this research attempted to propose ways of improving 'CM Fee Guidelines' published by Korean Ministry of Construction and Transportation by conducting a benchmarking study on Global Standards of estimating CM Fee. International organizations benchmarked in this research include CMAA, ASCE, DOL, DOE, etc. Various investigation and analysis revealed that Korean 'CM Fee Guidelines' need to significantly modified comparing to Global Standards. This research also tried to prepare recommendations to improve the CM deliver system focusing on the 'Method of CM Fee Estimation' and Selection of a CM firm as an owner's agent.

• Environmental and Resource Economics Review
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• v.17 no.3
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• pp.91-134
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• 2008

Korean district heating companies levy comprehensive construction fee on consumers in the beginning of construction period and the consumers' burden is much higher than those in any other network industries in Korea. It has also many problems such as inappropriate fee calculation method, cross subsidization, property right dispute, etc.. I show that the cut of construction fee by 30% and at the same time, the upward adjustment of tariff rates by 4~6% for 20 years on average will maintain current profitability based on the standard model simulation, I also suggest that fixed charge part of double tariff should be increased to 25% of total tariff and the cut of construction fee should be levied on fixed charge, directly to improve efficiency.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.1534-1539
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• 2009

During the last ten years, there have been many studies related with settlement and reinvigoration of CM. These researches have shown that the application of CM has been not reinvigorated in Korean construction industry yet, because of some problems such as the insufficient application of the public sector, the policy matters and the CM fee estimates. But the present condition data of the Korean CM Market shown in these studies was insufficient for the standpoint of Market itself. Also, some of these studies compared the Korean CM Market with The America CM Market, to study the foreign CM markets. However, because the Korea CM Market only has the CM for Fee Market but the American CM Market has the CM for Fee and the CM at Risk, the Korea CM Market must be not only compared with the America CM Market but also compared with the America CM for Fee Market. Therefore, the purpose of this study is to determine the present condition of the Korea CM Market through the compare and contrast of the Korean CM Market, American CM Market and American CM for Fee Market, by the Market Growth rate and Market Share. This study further aims to verify whether Korean CM market was implemented.

• Korean Journal of Construction Engineering and Management
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• v.3 no.1 s.9
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• pp.97-106
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• 2002

at the design phase and the effective design phase VE application, it is not sufficient to implement VE study at the design phase in the domestic construction industry. The method for estimating design phase VE consulting Fee regulated in current guideline and the insufficient incentive system according to the result of design phase VE application are major problems among the problems related to the roadblock of the active implementation Design phase VE. In this paper, firstly the current methods for estimating Engineering business consulting fee analogous to design phase VE and the domestic and foreign design VE consulting fee were examined, and detailed problems related to the method for estimating design VE consulting fee were indicated, and the Improvement direction were established. Secondly, the estimating strategy for the design phase VE consulting fee and the payment strategy of incentive according to the result of savings were proposed. Finally, the strategies were verified by interview with the experts.