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http://dx.doi.org/10.6106/KJCEM.2011.12.3.53

A Study on the Improvement of Engineering and Construction Supervision Guarantee System in Korea  

Lee, Yong-Hee (상지엔지니어링건축사사무소)
Choi, Jae-Ho (동아대학교 토목공학과)
Publication Information
Korean Journal of Construction Engineering and Management / v.12, no.3, 2011 , pp. 53-61 More about this Journal
Abstract
After several collapse accidents of large structures in the early 1990s in Korea, the government enacted a law that architectural, engineering and construction firms are obliged to have insurance for projects over a certain size. Particularly, with regard to insurance in design and construction supervision works (i.e. engineering insurance), although several operation-based problems were pointed out from practitioners, still little research has been done on analyzing current regnlartory and operational state and suggesting policy alternatives. Hence, this study applies Delphi technique to solicit current operational problems and propose a series of improvements on engineering insurance based on interview surveys targeting major market participants: municipalities, engineering firms, and insurance companies. Key findings culminate in adopting guarantee limits based on credit evaluation, abrogating joint surety, covering a loss of life, increasing insurance entrance fee, extending time covered, and etc. Reaching a consensus on the proposed alternatives between the market participants will form the foundation for sound developments of construction design and engineering industry.
Keywords
Surety Bond; Insurance; Guarantee; Policy Alternatives; Delphi Method;
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