• Journal of the military operations research society of Korea
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• v.37 no.1
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• pp.99-118
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• 2011

According to the National Contract Law, when determining Estimation cost Contract officers should consider contract quantity, contract period, supply and demand condition, difficulty of contract enforcement, terms and condition, and other various conditions based market price, costing based pricing, and appraisal. And they should not overestimate or underestimate the estimation cost. But the estimation cost system is used as preparedness for audit against the contract law. In this study, we identified the factors affecting estimation cost and analyzed their influence on estimation cost.

• Plant Journal
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• v.7 no.2
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• pp.39-43
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• 2011

Due to the recent uncertainty of market situations such as the escalation of petroleum prices, increased production capacities of plants, limitations of the available EPC (Engineering, Procurement, Construction) contractors, and the increase of raw material prices, EPC contractors have had a tendency to include a higher reserve contingency in the lump-sum turnkey contract price. In order to overcome the changes in the market, the plant project construction industry has started to apply the converted lump-sum turnkey contract in plant construction market. This study was focused to find the associated risks and to analyse the identified risks on recent trend of application of the new contract type, which is the converted lump-sum turnkey contract. It was recognized from the analysis that quality and cost have more high priority risks than other project objectives. This paper also suggests the mitigation plan for identified risks to achieve project objectives appropriate to the converted lump-sum turnkey project from the viewpoint of an EPC contractor keeping transparency with owner.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.51
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• pp.133-158
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• 2011

The purpose of this study is to analyze one of CIETEC(China International Economic and Trade Arbitration Commission) Award on the dispute arising from Cotton Sale Contact which deals with damages and reduction of the price. Especially this case focused on the effect of reduction of the price to damages. The purpose of damages is to place the aggrieved party in as good a position as if the other party had properly performed the contract. So court costs and attorney's fee should be regarded as the loss, because these are caused by consequence of the breach which is recoverable. With the same reason, overpaid taxes should also regard as the loss. It is not impossible, however, to claim both damages and reduction of the price for same loss at the same time. It means buyer could not claim damages for the same loss, once he already claimed reduction of the price. So Korean companies should consider which remedy is proper to himself under the circumstances. He should choose reduction of the price when market price is down. In case of rising market price, he should consider follows: first, it is better to choose damages based on current price(Art.76), if upswing of non-conformity price is higher then upswing of market price. Second, it is better to choose general rule for measuring damages(Art.74), if upswing of market price is higher then upswing of non-conformity price.

• Environmental and Resource Economics Review
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• v.9 no.2
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• pp.421-449
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• 2000

The objective of this paper is to examine whether it is feasible to introduce an crude oil futures contract on domestic commodity exchange in order to minimize the price risks of imported crude oil. In addition. this study suggests the policy issues to promote futures trading and the alternatives to use foreign energy compares the five criteria to evaluate the feasibility of crude oil futures trading on the domestic exchange. Related to the possibility of successful futures trading of imported crude oil on the domestic exchange, they are evaluated as follows: it is highly possible to succeed for the aspects of price volatility, potential market size or liquidity, and commodity homogeneity; but it is inappropriate for the aspects of deliverable amounts and market power or market structure. Therefore, it is concluded that trading a new futures contract for the underlying imported crude oil on the domestic exchange is inappropriate. For the policy issues and the hedging alternatives, first, it is urgent to establish an atmosphere for futures trading by promoting spot trading. Second, for the case of futures trading on the domestic exchange it is important to consider the simultaneous hedging of crude oil price and foreign exchange risks and mutual offsetting mechanism with major foreign exchanges. Third, for the case of futures trading on foreign exchanges it is reasonable to regard cooperation among concerned companies, government support for futures trading and direct participation into futures trading by the government.

• Journal of Construction Engineering and Project Management
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• v.1 no.1
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• pp.1-10
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• 2011

This paper discusses the components of a guaranteed maximum price (GMP) and proposes a framework for the development of GMPs as contract payment provisions for construction manager-at-risk (CMR) and design-build (DB) contracts for transportation projects. The framework is the synthesis of a comprehensive literature review, a content analysis of CMR and DB solicitation documents and contracts, and case study project output from twelve projects in nine states worth $3.1 billion. The research also discusses the development of three common types of contingencies that are often utilized in projects with GMPs. The study concludes that owners should specify the structure of the GMP and its components to enhance clarity and understanding of the GMP's composition. It recommends that this structure be included in the CMR and DB solicitation documents so that pricing proposals can be formulated in a manner that is consistent with the contract payment provisions that will be useful to practitioners that need to implement GMP-based contracts.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.609-611
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• 2003

This paper presents a method for a congestion management in the competitive market which is modeled as the multiple bilateral transaction. Traditionary, the congestion management for the multiple bilateral transaction is accomplished through the process of adjustment bids. It is necessary in for the market entity to submit their price information when the congestion is occured. Finally, the ISOs can be blown about the approximated contract price of participants from the price of adjustment bids. However, the entities can submit only the amount of their contract to ISOs and ISOs are required the method to manage the congestion only by the contracted quantity. Therefore, this paper presents a method for congestion management by curtailing the only contracted quantity of market entities. To evaluated the above problem, we suggest Bilateral Transaction Distribution Factors(BTDFs), which is the sensitivity of line flow with curtailment of transactions. Using this factor, we studied about congestion management when the objective function is to minimize total curtailment of transaction.

• Journal of Construction Engineering and Project Management
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• v.5 no.3
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• pp.18-28
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• 2015

Bidding and contract systems are used for public construction projects to select contractors following fair competition principles and to execute national budgets effectively. Many challenges have arisen due to a lack of transparency and fairness and because bidding practices have been luck-based. Few comprehensive or comparative analyses have been conducted on the performance and limitations of bidding and contract systems, and empirical analyses designed to improve policies on and the practice of such systems are lacking. This study empirically analyzed current bidding and contract systems to seek ways of improving them. The study proposes several alternatives to resolve the problems with and irrationalities of the current system: 1) improving bidding and selection systems by changing them from a luck-based price competition into a technical merit- and value-based competition; 2) improving the assessment criteria to meet the current market level of bid and winning prices; 3) adjusting contractual responsibilities and sharing structures to meet the current trend; and 4) strengthening the competitiveness and expanding the social responsibility-based procurement systems of construction companies.

• The Journal of Fisheries Business Administration
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• v.54 no.4
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• pp.47-64
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• 2023

The development potential of the aquaculture industry is very high, but there is no financial support for investment except for the government, policy funds, fishery funds, etc. Therefore, we would like to propose a contract transaction in the aquaculture industry. This refers to a forward contract between a producer (fish farmer) and a buyer (mainly a processor or marketer) that stipulates the production and supply of fish products at a predetermined price, but it also refers to an "equity participation type" contract in which both producers and buyers can participate. In other words, it is a model in which part of the fish farm is produced in a way that meets the conditions of the buyer, and part is produced by the producer. This study aims to establish the basic contract trading process. It provides an academic approach to prevent adverse selection and moral hazard due to information asymmetry. It also provides an idea to converge the aquaculture industry with the financial industry using Pecking Order theory. By doing so, we have made it possible for venture capitalists to invest with confidence and provided a process for investors to resolve their concerns, paving the way for the aquaculture industry and the financial industry to develop together.

• Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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• v.6 no.7
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• pp.219-228
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• 2016

This research aimed at investigating policy change process of after school contracting out and suggesting future alternative. Also, this research conducted a literature search for the research data related to policy and related regulations. As the result of investigation, the Ministry of Education established management plan for after school, however there have been changes in policy, e.g. contracting out was executed from 2004 to 2008 upon autonomy of unit school through school steering committee deliberation(consultation), while standardized procedure was conducted, which was suggested in 'After school operation guideline', produced in cooperation between the Ministry of Education and municipal ministry of education from 2008 to 2015, while since 2016, contract law should be applied when after school contracting out is adopted. Policy change since 2016 is based on the legal necessity that contract law should be followed as the contract size of after school contracting out has become larger along with necessity of clarity of after school contracting out. Nevertheless, there's a worry that quality of after school education could be degraded due to lowest price bidding. The government suggested an alternative to prevent excessive price competition by paying a regular rate of basic price as personnel expenses, however this research suggested a plan to enact an ordinance in regard of specialty of after school educational activities and cities and provinces as the fundamental solution plan.

• Journal of Arbitration Studies
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• v.26 no.1
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• pp.107-134
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• 2016

International arbitration is the important field of applying CISG and the backbone of uniform law developed by CISG. Now CIETAC tribunals like courts of contracting states apply CISG precisely, which is beneficial to improving the quality and the credit of arbitral cases. Arbitration has the characters of independence and the non-government. the legal foundation of arbitral tribunal's applying CISG are the national arbitral law, the applicable arbitral procedures and usages of arbitration, not for performing international obligations under the CISG. CIETAC mainly use China Contract Law and CISG over the cases of sale of goods. Because of no provisions on recovery of differential price loss (equal to article 75 and 76 of CISG) Chinese tribunals have more discretion in determining the sum of damages under the China Contract Law. Applying China Contract Law may not beneficial to aggrieved party.