• Title/Summary/Keyword: subcontractor

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A Comparative Study on the Nominated Subcontractor (NSC) System of Building Construction Project in Asian Commonwealth of Nations - Focused on the NSC Clause Analysis of Standard Contract Forms - (아시아 지역 영연방국가의 지정하도급(NSC)제도에 관한 비교 연구 - 표준계약약관의 지정하도급자 항목분석을 중심으로 -)

  • Cho, Jaeyong;Kim, Junggon;Park, Hyeonggeun
    • Korean Journal of Construction Engineering and Management
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    • v.15 no.3
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    • pp.12-22
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    • 2014
  • In recent, many Korean contractors have tried to extend their business area into the overseas construction market, mainly as a result of a reduction in their domestic construction market. However in terms of risk, overseas construction projects are likely to face a number of unpredictable problems, many of which occur as a result of differences in contract cultures and construction environments between Korea and other countries. One key issue facing overseas construction projects in particular, is that of sub-contracting and control, and the way in which many countries of Commonwealth of Nations operate a unique subcontracting method well known as a nominated sub-contractor(NSC). This paper introduces the NSC system and differences as comparing among standard construction contract forms, such as JCT, SIA, HKIA and PAM. in UK and Asian Commonwealth of Nations. Also, we attempt to classify the type of the NSC system through the consideration of NSC clauses in accordance with the objection and termination of NSC contracting respectively.

Formation and Change of Production Network based on Customer-following Overseas Expansion of Korean Subcontractors: Electronic Industries in Hanoi Red River Delta, Vietnam (한국 하청기업의 해외동반진출과 생산 네트워크 형성 및 변화: 베트남 하노이 권역 전자산업을 사례로)

  • Kim, Seonghun
    • Journal of the Economic Geographical Society of Korea
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    • v.23 no.2
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    • pp.147-165
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    • 2020
  • The aim of this study is to find out Korean electronic industries' production network in Hanoi Red River Delta, Vietnam and its change based on customer-following overseas expansion. In-depth interviews with Korean subcontractors were conducted to examine the characteristics of customer-following overseas expansion of Korean subcontractors. Korean subcontracting corporations in electronic industries have expanded into Vietnam as the suppliers to Korean transnational corporations. Since 1990s, Korean corporations have invested into Vietnam but since late 2000s its industrial and geographical concentration has been shifted from textile and clothing industries in Southern Vietnam to electronics in Northern Vietnam. The customer-following overseas expansion of the subcontractors has emerged in three aspects: physical proximity, asymmetrical inter-firm relations and organizational embeddedness. During the process of customer-following overseas expansion, Korean electronic industry production network was transplanted into Vietnam and partially modified. This is because the company's hierarchy and difficulties in changing its trading relationship have affected the process of advancing into overseas markets. Korean transnational corporations seek to establish a stable suppliers through expansion accompanying with its subcontractors, and providing financial and non-financial support to its subcontractors.

Comparison of Safety Culture Awareness between Client and Subcontractors' Employees according to the Experience of Accidents and Near Misses (사고와 아차사고 경험에 따른 원청과 협력업체 근로자 간 안전문화 인식 비교)

  • Kim, Dong Yeol;Park, Jae Hee
    • Journal of the Korean Society of Safety
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    • v.37 no.2
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    • pp.28-34
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    • 2022
  • This study analyzes the impact that accidents and near misses have on clients' and contractors' awareness of safety culture. Due to the unique characteristic of employment structure in Korea, the occurrence of accidents differs by company size, which has relevant implications for the establishment of safety culture. Attention has been drawn to the importance of the management of accidents and near misses, with safety awareness acting as a core factor. A positive effect on the prevention of accidents could be achieved by noting the difference in safety awareness between clients and contractors and suggesting an associated suitable safety management system. In support of this study, a survey was distributed to workers in the automobile manufacturing industry (May-August 2020), and data from a total of 574 workers was collected and analyzed, including 399 clients' worksers and 175 contractors' workers. The questionnaire addressed participants' experiences of accidents and near misses as well as 50 items from the Nordic Occupational Safety Climate Questionnaire. Analysis of the responses was conducted using the methods of frequency analysis, Fisher's exact test, t-test, correlation analysis, and regression analysis. The results demonstrated that clients had more experiences with accidents and near misses compared to contractors. Additional differences between clients and contractors were noted in terms of the safety culture factors of learning, communication, and trust. A correlation was observed between the experience of accidents and safety justice management: for clients and contractors who experienced accidents, safety justice management was 9.4 times higher. Furthermore, clients' and contractors' awareness of employees' commitment to safety was determined to be 28.5 times higher in those who had experienced near misses This study concludes that, in order to improve accident prevention through the management of accidents and near misses, clients must focus on overseeing safety justice management and aspects of safety culture factors, while contractors must focus efforts on managing employees' commitment to safety. In further applications, this study could provide baseline data for health and safety activities in terms of the safety culture of clients and contractors. Further study on the establishment of safety culture as related to employment structure is proposed for future research.

Deriving Key Risk Sub-Clauses of FIDIC Conditions of Standard Subcontract -Based on FIDIC Conditions of Subcontract for Construction, edition 2011- (FIDIC 표준하도급 계약조건 핵심 리스크 세부조항 도출)

  • Hong, Seong Yeoll;Jei, Jae Yong;Seo, Sung Chul;Park, Hyung Keun
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.42 no.3
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    • pp.439-448
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    • 2022
  • Recently, domestic small and medium-sized subcontractors participating in the overseas construction market are suffering from the continuous loss and damage due to the insufficient recognition of the importance of risk Sub-Clauses among conditions of subcontracts. Therefore, the need to derive risk Sub-Clauses for conditions of the subcontract has been raised, but until now, previous studies have been conducted focusing on deriving risk Sub-Clauses for standard conditions of contract for construction between the Employer and the Contractor. In this study, 52 risk Sub-Clauses were derived on the basis of the influence size of the Sub-Clauses through the Delphi technique targeting 94 Sub-Clauses of conditions of standard subcontract for construction edition 2011, issued by the International Federation of Consulting Engineers (FIDIC) and In addition, 33 key risk Sub-Clauses were finally derived through the PI Risk Matrix by Probability and Impact. The results of this study provide will useful information on key risk Sub-Clauses that need to be reviewed in advance to minimize contractual risks at the stage of bidding and signing contracts for overseas subcontract construction projects.

A Study on Analysis of Construction Monitoring Cost and Improvement Measures of Railway Tunnel Construction in Seoul (서울시 철도터널 건설공사의 공사계측비 분석 및 개선방안 연구)

  • Jong-Tae Woo
    • Journal of the Society of Disaster Information
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    • v.19 no.1
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    • pp.18-30
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    • 2023
  • Purpose: This study is to contribute to the development of monitoring technology through the increase of confidence in construction monitoring by deriving the analysis of construction monitoring cost and improvement measures of railway tunnel construction in Seoul. Method: It presents the status on design and contract of construction monitoring cost, status on application construction monitoring cost and its analysis, analysis on safety management cost and quality management cost, expansion of application of the price calculation standard for monitoring management services to improve this, and monitoring for direct order of ordering organization. Results: If the monitoring management service that was meanwhile ordered as included in the construction work is performed by the directly selected company of ordering organization through the preliminary screening for bidding qualification, then the improvement of monitoring quality and the accurate monitoring data can be secured. Conclusion: For the price calculation standard for monitoring management service, the application of actual cost addition method under the Engineering Promotion Act and the calculation standard of monitoring management cost for standard estimation for ground survey should be extended through the direct order of ordering organization, not the method to be included in the net construction cost where it is performed by a subcontractor via contractor.

Need to Reduce Industrial Accidents through the Introduction of an Prevailing Wage System (적정임금제 도입을 통한 산업재해 감축 필요성 고찰)

  • Choonhwan Cho;Yeoncheol Shin;Kyung-Bo Han
    • Journal of the Society of Disaster Information
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    • v.19 no.1
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    • pp.1-9
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    • 2023
  • In order to carry out construction work, it is urgent to introduce a proper wage system so that the cost burden of projects that have been won due to bleeding competition among original government buildings based on low-priced bids can be transferred to subcontractors. Purpose: Construction with illegal multi-level industrial structure needs to improve the wage reduction environment leading to order (100%) → original contractor (80%) → subcontractor (65%) → load contractor (65%) and aims to ensure wages for end workers. Method: Investigate the current status of labor cost appropriate payment plan in the construction industry, and investigate the case of the appropriate wage system (P.W) in the United States. In addition, the effect and direction of the appropriate wage system are presented. Result: Individual minimum wage security was also mentioned in the Constitution, and many researchers suggested that only the introduction of an appropriate wage system could solve the problem of reducing worker labor and ensure quality and safety. Conclusion: The proper wage system in the construction industry will block illegal multi-level and illegal foreign work, improve the labor environment in the construction market, create an influx of young workers, and have a significant impact on the construction industry's competitive structure, safety, and quality.

A Research on Effect of Corporate's Competitive Advantage to the R&D Investment in Small and Medium Enterprise (중소기업 유형별 연구개발투자의 영향요인에 관한 실증연구)

  • Choi, Su-Heyong;Choi, Chul-An
    • Management & Information Systems Review
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    • v.33 no.1
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    • pp.191-217
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    • 2014
  • The Purpose of this study is to find the effect factors of R&D investment in SMEs which plays an important role in the national economy, and the differences of the effect factors by the type of SMEs. The subject of this study is about 3,400 SMEs mentioned in "The survey of technical statistics on SMEs in 2007" by Korea Federation of Small and Medium Business. The effect factors are related with the size of business, the infrastructure of R&D and the activities of R&D which have been studied by many researchers. The methods of analysis are regression analysis, moderating effect analysis and the software package used is SPSS 12.0. The results of the study are as fallow. First, it was found that unlike in previous studies which show the effect of the elements of business's size, research infrastructure, research activities on R&D investment, one element alone can't be considered for meaningful result but the various elements have effect on R&D investment at the same time. In other words, the number of employees and the sales as the elements of business's size, the ratio of researchers, the technical ability, the ratio of equipment possession and the intellectual properties as the elements of R&D infrastructure, the activity of ideas and joint research as the elements of R&D activities have positive(+) effect, whereas the participation of CEO in the activity of R&D as the elements of R&D activities activity has negative(-) one. The number of employees, the ratio of researchers, and the sales had relatively high influence whereas equipment possession, technical ability, intellectual properties, the participation of CEO in the research, the activity of idea, joint research had relatively low influence. Next, it was also found that there are differences of the effect factors over the types of SMEs. SMEs were classified into 19 types by eight criteria such as start-ups and existing business by business age; small business and medium business by size; manufacturing business and service business by product type;independent business and subcontractor business by dealing type; businesses in the entering, growing, maturing and restructuring stage by growth stage; businesses with low, medium and high technology by technological level; pioneering business and non-pioneering business by industrial type; and businesses with state-of-the-art technology and non-advanced business by the level of business activities. The meaning of this study lies in the fact that it found the various effect factors should be considered at the same time when conducting study on SMEs' R&D investment, and the differences by the type should be acknowledged. This study surpassed the limitations of the previous studies which focused on a couple of factors and types. This study result can also be considered for other studies on achievement, organization, marketing and others. Moreover, it shows that a differential policy by business type is needed when formulating SME policy.

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A Case Study on Mechanism Factors for Result Creation of Informatization of IT Service Company (IT서비스 기업의 정보화 성과 창출을 위한 메커니즘 요인 사례 연구)

  • Choi, Hae-Lyong;Gu, Ja-Won
    • Management & Information Systems Review
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    • v.36 no.5
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    • pp.1-26
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    • 2017
  • In the meantime, research on corporate informatization focuses on the completeness of information technology itself and its financial effects, so there is insufficient research on whether information technology can support business strategy. It is necessary to verify whether the management strategy implementation of the company can be led through the informatization of the enterprise and the relation between the main mechanism factors and the informatization performance. In this study, what a mechanism factor is applied in the process of result creation of informatization from three mechanism perspectives such as selecting mechanism, learning mechanism and coordinating mechanism with cases of representative domestic IT company and what an importance mechanism factors have been ascertained. This study results in 8 propositions. For a main agent of companies, securement of information capability of organizations has been selected to realize informatization results and investment of informatization has been selected to solve organizational decentralization problems as the most important factor. Additionally, as competition in the industry gets fierce, investment on informatization has been changed to a utility way of implementation of strategies and decision on investment has been made through the official process and information technology. Differentiated company capability has been made based on acquisition of technical knowledge and company information has been expanded to its whole employees through the information system. Also, informatization change management and outside subcontractor management have been acknowledged as an important adjustment factor of company. The first implication of this study is that since case studies on mechanism factors that preceding studies on informatization results did not empirically cover have directly been dealt with based on experiences of executives in charge of business and in charge of informatization, this study can provide practical views about factors that should be mainly managed for informatization results of IT companies. Secondly, since ser-M framework has been applied for IT companies for the first time, this study can academically contribute to companies in other fields about main mechanism factors for result creation of informatization based on deeper understanding and empirical cases.

The Effects of Environmental Dynamism on Supply Chain Commitment in the High-tech Industry: The Roles of Flexibility and Dependence (첨단산업의 환경동태성이 공급체인의 결속에 미치는 영향: 유연성과 의존성의 역할)

  • Kim, Sang-Deok;Ji, Seong-Goo
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.2
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    • pp.31-54
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    • 2007
  • The exchange between buyers and sellers in the industrial market is changing from short-term to long-term relationships. Long-term relationships are governed mainly by formal contracts or informal agreements, but many scholars are now asserting that controlling relationship by using formal contracts under environmental dynamism is inappropriate. In this case, partners will depend on each other's flexibility or interdependence. The former, flexibility, provides a general frame of reference, order, and standards against which to guide and assess appropriate behavior in dynamic and ambiguous situations, thus motivating the value-oriented performance goals shared between partners. It is based on social sacrifices, which can potentially minimize any opportunistic behaviors. The later, interdependence, means that each firm possesses a high level of dependence in an dynamic channel relationship. When interdependence is high in magnitude and symmetric, each firm enjoys a high level of power and the bonds between the firms should be reasonably strong. Strong shared power is likely to promote commitment because of the common interests, attention, and support found in such channel relationships. This study deals with environmental dynamism in high-tech industry. Firms in the high-tech industry regard it as a key success factor to successfully cope with environmental changes. However, due to the lack of studies dealing with environmental dynamism and supply chain commitment in the high-tech industry, it is very difficult to find effective strategies to cope with them. This paper presents the results of an empirical study on the relationship between environmental dynamism and supply chain commitment in the high-tech industry. We examined the effects of consumer, competitor, and technological dynamism on supply chain commitment. Additionally, we examined the moderating effects of flexibility and dependence of supply chains. This study was confined to the type of high-tech industry which has the characteristics of rapid technology change and short product lifecycle. Flexibility among the firms of this industry, having the characteristic of hard and fast growth, is more important here than among any other industry. Thus, a variety of environmental dynamism can affect a supply chain relationship. The industries targeted industries were electronic parts, metal product, computer, electric machine, automobile, and medical precision manufacturing industries. Data was collected as follows. During the survey, the researchers managed to obtain the list of parts suppliers of 2 companies, N and L, with an international competitiveness in the mobile phone manufacturing industry; and of the suppliers in a business relationship with S company, a semiconductor manufacturing company. They were asked to respond to the survey via telephone and e-mail. During the two month period of February-April 2006, we were able to collect data from 44 companies. The respondents were restricted to direct dealing authorities and subcontractor company (the supplier) staff with at least three months of dealing experience with a manufacture (an industrial material buyer). The measurement validation procedures included scale reliability; discriminant and convergent validity were used to validate measures. Also, the reliability measurements traditionally employed, such as the Cronbach's alpha, were used. All the reliabilities were greater than.70. A series of exploratory factor analyses was conducted. We conducted confirmatory factor analyses to assess the validity of our measurements. A series of chi-square difference tests were conducted so that the discriminant validity could be ensured. For each pair, we estimated two models-an unconstrained model and a constrained model-and compared the two model fits. All these tests supported discriminant validity. Also, all items loaded significantly on their respective constructs, providing support for convergent validity. We then examined composite reliability and average variance extracted (AVE). The composite reliability of each construct was greater than.70. The AVE of each construct was greater than.50. According to the multiple regression analysis, customer dynamism had a negative effect and competitor dynamism had a positive effect on a supplier's commitment. In addition, flexibility and dependence had significant moderating effects on customer and competitor dynamism. On the other hand, all hypotheses about technological dynamism had no significant effects on commitment. In other words, technological dynamism had no direct effect on supplier's commitment and was not moderated by the flexibility and dependence of the supply chain. This study makes its contribution in the point of view that this is a rare study on environmental dynamism and supply chain commitment in the field of high-tech industry. Especially, this study verified the effects of three sectors of environmental dynamism on supplier's commitment. Also, it empirically tested how the effects were moderated by flexibility and dependence. The results showed that flexibility and interdependence had a role to strengthen supplier's commitment under environmental dynamism in high-tech industry. Thus relationship managers in high-tech industry should make supply chain relationship flexible and interdependent. The limitations of the study are as follows; First, about the research setting, the study was conducted with high-tech industry, in which the direction of the change in the power balance of supply chain dyads is usually determined by manufacturers. So we have a difficulty with generalization. We need to control the power structure between partners in a future study. Secondly, about flexibility, we treated it throughout the paper as positive, but it can also be negative, i.e. violating an agreement or moving, but in the wrong direction, etc. Therefore we need to investigate the multi-dimensionality of flexibility in future research.

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