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http://dx.doi.org/10.5345/JKIC.2010.10.1.175

Adjustment of Contract Price according to Introduction of Pay Adjustment  

Lee, Sang-Beom (동의대학교 건축공학과)
Publication Information
Journal of the Korea Institute of Building Construction / v.10, no.1, 2010 , pp. 175-180 More about this Journal
Abstract
Despite continuous efforts by the construction industry to achieve better quality, it doesn't seem that much has been improved. This is mainly because current specifications do not satisfy a change in the market environment, which is that a higher level of quality is now demanded by users. Quality improvement efforts have been satisfied merely to meet specifications. On the other hand, advanced countries have been experienced great success in their construction techniques and have reduced costs by introducing apay adjustment system to the construction industry, in which compensation is based on performance. Following their example, Koreashould introduce such a pay adjustment system in order to motivate the members of our construction industry to achieve better quality and a higher level of construction techniques. However, there has been a lack of a rational approach to the development of a system for cost coordination, as well as performance and quality inspection. Thus, in this study a legal and logical plan was developed that can be used to adjust the construction cost, along with the performance inspection of quality results, in order to introduce a pay adjustment system that is appropriate for domestic regulations.
Keywords
Performance Warranty; Pay Adjustment; Payment; Cost Adjustment;
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