• International conference on construction engineering and project management
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• 2007.03a
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• pp.509-519
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• 2007

Private financing is playing an increasing role in public infrastructure construction projects worldwide. However, private investors/operators are exposed to the financial risk of low profitability due to the inaccurate estimation of facility demand, operation income, maintenance costs, etc. From the operator's perspective, a sound and thorough financial feasibility study is required to establish the appropriate capital structure of a project. Operators tend to reduce the equity amount to minimize the level of risk exposure, while creditors persist to raise it, in an attempt to secure a sufficient level of financial involvement from the operators. Therefore, it is important for creditors and operators to reach an agreement for a balanced capital structure that synthetically considers both profitability and repayment capacity. This paper presents an optimal capital structure model for successful private infrastructure investment. This model finds the optimized point where the profitability is balanced with the repayment capacity, with the use of the concept of utility function and multi-objective GA (Generic Algorithm)-based optimization. A case study is presented to show the validity of the model and its verification. The research conclusions provide a proper capital structure for privately-financed infrastructure projects through a proposed multi-objective model.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.474-479
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• 2011

With Beijing's success in bidding for the 2008 Olympic Games, the increasing demand for infrastructure development and reduced public sector funding capacity has created a significant funding gap which calls for alternative project delivery methods such as Public-Private Partnership (PPP). Although the exploration of infrastructure projects using PPP model have been practiced since the late 80s, the $560 million National Stadium which served as the main venue for the Olympic Games is the first stadium project in China to be delivered under PPP operation. The project is generally considered successful despite the concession transfer in 2009 with concern of better serving the public interest. Compared to other infrastructure projects such as transportation, waste management and water management, the development of major sports facilities for mega-sports events with PPP has its own unique features and is subject to different major risks. This research identifies and analyzes critical risks in the implementation of PPP in major sports facility development through case study of the National Stadium project. A questionnaire survey and several interviews are conducted to solicit expert opinions from experienced practitioners. The purpose is to provide additional insights in risk management strategies and opportunities in China's PPP implementations in major sports facilities for policy makers and private sectors involved with investment decisions in future similar infrastructure development.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.634-639
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• 2013

The aim of the study is to develop the 3D visualization of Building Information Model and integrated 4D model for optimization of resources in the construction project. This study discuss the process of methodology and creation of 4D model of the project and simulate it to monitor the workflow at the site. Different stages of the construction process and activities are generated by using Revit and MS Project. MS project has been used for creation of the schedules and these are linked with the Revit for 3D modeling. The time used as the fourth dimension and 4D model created by using Navisworks Time liner software. Narges shopping center is presented as a case study to realize the actual uses and benefits of Building Information Model (BIM). Narges shopping mall is located in Tehran, Iran. As a part of Hekmat master plan, Narges shopping center is an 11 stores building with a total area of 30000 Sq.m. This shopping and entertainment center is comprised of 150 retails and two multi-use public halls with a capacity of 400 persons each and underground parking with total 400 parking space. The main purpose of architecture was to create an urban public center along with its revolving, spiral like form and an ever changing continuous façade by means of different colors, materials, which is in harmony with the other building of the master plan. The approximate cost of the project is $17 million and duration of the project schedule is 30 months. The developed Building Information Model enabled us to identify the potential collisions or clashes between various structural and architectural systems. 4D model has been used for limiting the interaction between subcontractors installing the different systems so rework could be avoided and productivity maximized. It is also observed that the utility of BIM for construction stimulation and clash detection is the best suitable method. Clash detection before the implementation of work is highly recommended to avoid rework.

• International conference on construction engineering and project management
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• 2024.07a
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• pp.1112-1119
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• 2024

Addis Ababa, the capital of Ethiopia, has been lacking an adequate road network to ensure community access to social, political, and economic resources and to facilitate economic development. The road network coverage was about 22.5% in 2022, which is below the minimum international standard of 25%. To improve accessibility and mobility, the Addis Ababa City Roads Authority(AACRA) has engaged its own force crew (contractor), as well as local and foreign road contractors, in the construction of urban roads. However, these road construction projects are rarely completed within the estimated time and cost, along with a variety of other issues that also need to be addressed. This study aims to explore the application of lean construction for improving the performance of urban road construction projects in Addis Ababa City. A survey of road construction stakeholders was carried out to evaluate their perspectives on the importance of project performance indicators, with the goal of identifying key factors affecting road construction project performance. First, a list of performance indicators was prepared based on a review of lean construction literature, and a total of 38 identified factors were grouped into six performance indicator categories. Cross-tabulation analysis of the stakeholder perspectives was then carried out, and it was found that the indicators that affect the performance of urban road infrastructure projects (in descending order of importance) were: time, quality, cost, risk, safety, and sustainability. Through this analysis it was concluded that right-of-way issues, delay to finish, inflation, contractor capacity, and scope change with change order are also major factors that affect the performance of urban roads construction projects. Clarification of these factors will provide AACRA with useful information on what aspects of lean construction should be prioritized when evaluating future construction projects.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.1283-1287
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• 2009

The Korean government implemented 259 road projects from 2004 to 2007, valued at $18.4 billion. Change orders of these road projects occurred 8,973 times and, subsequently, caused significant increases in the cost of the projects, approximately up to $4.2 billion (22.8% of the initial budget). These significant problems of huge change orders require a more workable control system for budget management whereas the effectiveness of the government's control is still not satisfied. However, previous approaches and studies mostly limited their analyses to simply classifying the causes of the change orders. This paper investigates the real frequency and cost impacts incurred by each cause of a change order, primarily based on 218 road projects in Korea. The paper then identifies the attributes of change orders through a survey of 204 project participants in that those sources were inevitable or avoided if properly managed. The causes of the change orders are further analyzed with analysis of variance (ANOVA) in connection with contract volume, bid award rate, the contractor's capacity to perform, and the design company's capacity. This study found that if the contract volume is smaller, then the possibility of change orders is higher. Interestingly, if the bid award rate is less than 67.5%, it signifies the highest rate of change orders. In addition, the contractors whose construction ability is assessed as the top-ranked group showed the lowest change order rates. With these results, this paper provides the preventive guidelines for reducing the likelihood of change orders.

• Journal of the Korean Operations Research and Management Science Society
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• v.5 no.1
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• pp.61-72
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• 1980

This paper is an attempt at developing a method for the analysis and estimation of the effects of project disruptions due to uncertainties. Such uncertainties may result from design changes in large-scale, complex, research and development, or construction projects. An entropical risk analysis method is developed. The method is able to estimate the project capacity to handle equivocation due to design changes and the effects of project disruptions. In an attempt to evaluate the predictive capability of the method, it is compared with the results obtained by a computer Monte Carlo simulation program. It is shown that the entropical risk analysis method may be suggested as an expedient means of evaluating project status for management in the different stages of project execution.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.32-39
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• 2003

Owners, local autonumous entities, have a burden on operating project for the lack of their management capacity such as specialty and human resources. In this reason, they want to perform project with CM methods. But there have been only a few case of CM operation and application in a huge construction project. The complex formations of CM and responsible management are used in those project. This situation originates in the lack of CM specialist. Because the CM service used in those case is generally performed as the mixture of responsible management service and design management service, it is not the prototype of CM. The purposes of this study are to present the solutions to the problems concerned with the design development phase management, design phase VE, the application of Fast-Track, PMIS operation and CM execution, etc, and establish the plan to perform CM services efficiently in the public sector through analyzing the case of CM application in Gwangjin-Gu Culture & Sports Center.

• Journal of the Architectural Institute of Korea Planning & Design
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• v.34 no.9
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• pp.77-86
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• 2018

Demand for construction technology is expected to change due to changes in domestic and foreign construction markets and the fourth industrial revolution. In particular, demand for project management strategy and project management capability is even more increasing rather than existing production technology capability. However, the current re-education program for engineers and technicians in construction industry is not matching the need of improving capacity required to reflect the demand of construction technology from construction industry. Therefore, in this study, as a part of efforts in innovating the current global construction talent re-education system to cope with the change in the construction industry, we analyzed the difference between the demand of construction technology and the present condition of construction re-education program. In order to investigate the current status of re-education of construction, questionnaires were prepared to gather opinions from construction engineers who attended construction re-education program and also from industrial partners that are jointly doing business. This study can be an example to improve the construction re-education program as a system for substantially reinforcing the competence of engineers rather than those programs that are merely verifying and/or extending engineers' certification.

• Journal of the Korea Institute of Building Construction
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• v.12 no.6
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• pp.674-681
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• 2012

With the rise in the functions required in modern building structures, the role of the building equipment that maintains the functions of a building has been emphasized and increased. Effective management in this area is only possible when the construction manager (CMr) is qualified and has the knowledge of building equipment that is needed. Therefore, in this study, a questionnaire survey was carried out on equipment engineers and CMrs, in order to determine the level of building equipment knowledge required, and to identify the perception level of CMrs about the building equipment in the construction project at the project design stage. The results of this study revealed that the CMrs surveyed had a lower level of knowledge on the building equipment than the level that was desired by the equipment engineers. This indicates that CMrs currently have a weak capacity for the management of building equipment. It is thus necessary for CMrs to undergo systematic training in order learn more about building equipment and thus be able to manage construction projects more efficiently.

• Korean Journal of Construction Engineering and Management
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• v.22 no.5
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• pp.66-72
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• 2021

Participation in official development assistance (ODA) construction projects can be proposed as a way to revitalize Korean small and medium-sized construction companies' entry into the overseas construction market. To this end, the necessary competency items were derived for the execution of the project, and a survey was conducted and an analysis of importance-current competency was performed. 24 out of a total of 32 competency items were analyzed as having a low level of competency compared to their importance, indicating that it is urgent to strengthen corporate-level capabilities for the smooth execution of related projects in the future. In detail, it is judged that it is necessary to seek to establish a preferential capacity-strengthening plan for contract management-related items such as the 'Construction-related fundamental laws, Contract management method, and International administration negotiation'.