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A Case Study on Owner's Loss Incurred due to the Financial Cost of Public Construction Works in Korea  

Jeong, Min (한미파슨스, 연세대학원)
Lee, Ghang (연세대학교 건축공학과)
Publication Information
Korean Journal of Construction Engineering and Management / v.9, no.3, 2008 , pp. 136-145 More about this Journal
Abstract
Occasionally an owner of public construction work pays financial costs in addition to progress payments. However, the overall scale of financial costs are not known. This research examines, based on a case study, the financial cost incurred in public construction works and the following issues: the overall scale of financial costs, the impact on financial costs on the owner, and the impact of timing on the overall sum of the financial costs. Annually, more than 2.3 trillion KRW are paid as progress payments for public construction work; yet, there is no research data showing the scale of financial costs thus incurred. The purpose of this research is to illustrate the scale of financial costs incurred due to progress payments for public construction works, and to suggest alternatives that would improve relevant regulations.
Keywords
progress payment balance; progress payment; public construction work; financial cost; construction schedule; owner's loss;
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