• Korean Journal of Construction Engineering and Management
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• v.16 no.4
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• pp.139-145
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• 2015

Modular construction is combined with manufacturing production process and conventional construction industry technique. Considering characteristic of modular construction production process, manufacturing facilities require indirect costs for utilities, equipment, and overall maintenance, which can affect modular units pricing. However, current modular construction cost classification is inadvertent to reflect the manufacturing overhead costs, because it is generally added as a percentage to sum of labor, material and equipment as it called in single cost pool used. This process is easy to estimate the total construction cost at the project starting points, but it brings on misunderstanding of project profit estimations by "cross subsidization phenomenon". To prevent this situation, in this research aims to provide modular construction overhead cost handling process at the detailed indirect cost calculation for manufacturing stage using Activity-Based Costing as one of the powerful method for overhead costs estimation and allocation. Using this research results, modular construction cost estimators have more detailed cost information of modular units and prevent to misallocate indirect costs. Also, it can be utilized to aid the understanding of the company's profit structure.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.597-601
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• 2006

There are considerable amount of man power and time spent for analysis and selection of various materials due to the inadequate application system and rapid searching process of material related information in each stage of building production process. Also, due to the insufficiency in recycling system of important information created for each process, they are hoarded at each task stage and project completion. As a result, because of the repetition of the similar/identical tasks on each process, it is the major reason for impeding the efficient employment of manpower of the company and decreasing competition of the company. Moreover, in selecting finish material in the project field, there are many difficulties due to the lack of technical information such as product characteristics and field applications. The construction quality also affects the profit and loss of the product which calls for a need to develop continued information management system that the finish material related examples could be shared in real time. The objective of this study is to propose a building finish material information which the real time research and application is possible to raise the productivity. TO do this, the current material information task status analysis and questionnaire research should be conducted to understand the demand of system development and reflect the result onto the system for easy access and application. Therefore, the building finish material information system for enhancement of productivity of construction task proposed in this study is expected to be utilized in enhancement of construction quality, maximization of company profit, and strengthening of company competition.

• Land and Housing Review
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• v.5 no.4
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• pp.225-234
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• 2014

Because of their nature as public facilities, demands that former military facilities be utilized for the public welfare are increasing, thereby leading to an increase in cases in which these military facilities are reestablished as parks. Cases in which former military bases were reestablished as public parks were analyzed; as a result, several implications were derived. First, the objectives of public park projects should be examined from the perspective of the concept of urban regeneration and regional revitalization. Moreover, it is necessary that profits are yielded and that regional identity and history are reproduced through reusing existing facilities as much as possible rather than entirely remodeling former military sites. As parks become larger in size, bases should be reorganized into complexes rather than single facilities or programs. It is also necessary that parks be established in stages considering the enormous expenses required for building public parks. Consequently, because the special characteristics of military facilities can lead to insufficient on-site investigation in the process of establishing parks, thereby incurring a vast amount of costs for design adjustment and contamination disposal, this should be considered in advance. A method of delegating the development rights to partial sites to private businesses and supplementing the costs of park establishment and maintenance with development benefits should be examined. In addition, given that there are various interests and stakes in former military bases, a method of operating a public-private cooperative decision-making organization during project execution should be considered. Finally, policies related to urban parks need to be improved in order to raise funds, expand profitable businesses, facilitate social services and sponsorship, and encourage the participation of trusts and non-profit organizations in park operation and management.

• Journal of the Korea Society of Computer and Information
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• v.25 no.2
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• pp.221-229
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• 2020

As the cosmetics beauty industry grows into a key next-generation industry, the establishment of an industrialization center is needed, but failure to verify the adequacy and feasibility of the investment could lead to financial burdens. In this study, the project costs and facilities of an industrial center are reviewed to analyze its economic feasibility based on the cost estimates, revenue estimates, estimated profit or loss calculations, and estimated operating cash flows. The profit estimation criteria were analyzed by applying 90 per cent of expected orders for research projects (24 billion won) and 12 per cent of rental rates for testing equipment (4.5 billion won for construction), and the benefit/cost ratio is higher than 1.02 per cent and the net present value is higher than '0' won, and the internal rate of return is also more than 5.06 per cent for all three analytical methods. Therefore, in order for the construction of a cosmetics beauty industrialization center to be economically feasible, it is necessary to maintain research project orders of more than 90 percent and return on equipment rent of more than 12 percent, and a strategic approach is needed to diversify business profits.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.26 no.4D
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• pp.635-647
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• 2006

Korean construction companies first advanced to the international markets in 1960's and so far have brought more than 4,900 projects which account for 193 billion dollars approximately. With the large increase of national employment and income being followed by the achievement, Korea's construction industry has made an enormous contribution to the improvement of domestic economy for the last 40 years. However, recently the increased risk in international markets as well as the sharpening competition with foreign companies promising in terms of advanced technologies and low labor cost have been driving Korean construction away from the market shares. According to ENR (Engineering News Record, 1994~2003), it is revealed that 15.1% of top 225 global contractors are suffering from loss in international construction markets. This phenomenon is largely due to the highly uncertain characteristics of international projects, which are inherently exposed to various and complicated risky situations. Furthermore, especially for Korean construction companies, it is often the case that the failure in an international construction project cannot be offset by even a sufficient number of successful domestic achievements. Therefore, not only the selective screening among the nominated projects which have strong possibility of collapse but the systematic strategies for controlling potential risk factors are also considered indispensable in international construction portfolio management. The purpose of this study is to first analyze the causal relationships of the profit-influencing variables and the project success, and develop the profitability forecasting model in international construction projects.

• Korean Journal of Construction Engineering and Management
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• v.17 no.3
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• pp.61-70
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• 2016

Construction enterprises have performed various projects such as buildings, infrastructure and plant projects in the international market. Among these, the plant project's amount of orders accounted for about 68.9% of all. However, because of the enterprises won a contract with a low-budget for plant project in the last 10 years, the profit has dropped dramatically. And it is forecasted that there are extreme competition for bid award of plant projects because of the current falling oil prices and raising interest rates. In this circumstance, the comprehending of enterprises strength and weakness must be a priority to get a sustainable competitive advantage. Therefore this research suggests the enterprises's capability assessment framework and it is in order to diagnose the korean construction enterprises capabilities. The framework is based on the VRIO model that is on the basis of resource based theory. First, the capability assessment indices and their importance and priority that based on the life-cycle of plant project is deducted by literature review and survey. Second, the 5 point likert score applied VRIO survey is conducted to diagnose the enterprises and quantified the survey result using the fuzzy theory. Lastly, the competitvie implication and capability assessment are deducted.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.9
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• pp.480-486
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• 2020

The National Registered Cultural Heritage no. 377, 'The Eclectic-style House in Daeheung-dong, Daejeon', was relocated in 2013, even though it was privately owned. The relocation of National Registered Cultural Heritage through an urban redevelopment project is rare because the restriction of the preservation of a cultural asset is relatively tolerated. For the sake of profit in a redevelopment project, a privately owned Registered Cultural Heritage is likely to be demolished with no laws to prevent it. This study researched the history of the heritage and the procedure of the relocation process. Based on the research, the study intends to clarify the relationship between the economic and legislative conditions with the result of the National Registered Cultural Heritage relocation in general. The failure of the successful relocation of the National Registered Cultural Heritage in redevelopment projects is caused mainly by a change of ownership, which is generally from personal to anonymous associations. Based on the condition, this study maintained the Cultural Heritage's redefinition as a public asset and proposed phased amendments in each major procedure of a redevelopment project for the successful preservation and reuse of National Registered Cultural Heritage.

• Korean Journal of Construction Engineering and Management
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• v.18 no.2
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• pp.91-98
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• 2017

Due to climate change, countries around the world are actively investing in renewable energy, reducing fossil fuel use. 23.7% of world electricity is supplied by renewable energy. As the technology continues to develop, it is in a level to compete in terms of power generation cost, and investment conditions are improving. However, investment in renewable energy projects is not easy. This study analyzed trends of domestic and international researches on economics assessment applying real options analysis to investment decisions of hydro, solar, and wind power projects, which account for a large portion of renewable energy. This study provides (1) the difference between the traditional economic method and the real options analysis, (2) the application process, and (3) the uncertainty elements and option type of the renewable energy project presented by many studies. The real options analysis is suitable for the detailed investment strategy by considering the uncertainties of the renewable energy project and applying the option to improve the profit or to avoid the risk.

• Korean Journal of Construction Engineering and Management
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• v.4 no.4 s.16
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• pp.212-219
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• 2003

In construction project planning and control, a cost model performs a critical role such as cost determination on a contract stage and cost tracing. The model can maximize owner's profit and value within the project budget and optimize cost management works on overall construction implementation stages. A BoQ(Bill of Quantities) generally adopted in a unit price contract has been applied as an important tool for cost control and forecast. However a previous cost model based on the BoQ has shown limitations in that it requires too detailed information and heavy manpower on cost management and difficulty in keeping relationship with construction planning, scheduling and progress management. The each cost items and unit prices which constitute of construction works are individually very important management factors but the relative weight for each items and prices have a difference on the contents and conditions of each conditions of each construction works. In consideration of this structural mechanism of cost determination, this research is aimed at examining the critical factors affecting the construction cost determination and propose and verify a new cost forecasting model which is more simple and efficient and also keeps the accuracy of cost management.

• Proceedings of the Technology Innovation Conference
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• 1997.07a
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• pp.247-265
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• 1997

The objectives of not-for-profit organizations including government supported research institutes are, by definition, to achieve socially desired nonfinancial goals. Current reporting focuses on providing information to meet the needs of users. This information may be provided in the annual research report, financial report, and other reports. An objective of current reporting is to provide users with information that will assist them in evaluating the performance(efficiency and effectiveness) of reporting entity. The evaluation of R&D project's performance requires information not only about the acquition and use of resources, but also about the outputs and outcomes of R&D activities, This study aims to recommend that R&D Service Efforts and Accomplish- mints(SEA) reporting is useful for performance evaluation in national R&D programmes. To achieve this aims, I attempt to develop the R&D SEA measures with reference to the Concepts Statement No. 2 of the Governmental Accounting Standards Board. R&D SEA measures consist of five categories : (1) input measures, (2) outcome measures, (3) output measures, (4) re1a1e efforts to accomplishments, (5) explanatory information.