Browse > Article
http://dx.doi.org/10.6106/KJCEM.2017.18.2.030

Improvement of the Calculation Standard for Prolongation cost of Long-term Continuing Contracts Construction Project  

Jeong, Kichang (Korea Institute of Construction Management)
Lee, Jaeseob (Division of Architectural Engineering, Dongguk University)
Publication Information
Korean Journal of Construction Engineering and Management / v.18, no.2, 2017 , pp. 30-37 More about this Journal
Abstract
In Korea, additional indirect costs generated from the time period extension of public construction projects have been studied. Practical claims against such costs are increasing. There are no clear criteria for calculating the delay cost caused by the extension, and thus calculation methods differ across entities. Logical valid calculation methods have also not been researched. Further, there are no Korean studies on the additional indirect cost caused by a suspension in a public construction project on a long-term continuing contract. The purpose of this research is to propose a method of calculating the indirect cost incurred by construction time extension that reflects the characteristics of Korean public construction projects. The cost patterns generated during construction periods were analyzed, and then the current criteria of calculating the indirect costs caused by the extension were examined. Following this, actual conditions and practices in the field were surveyed and the current calculation method was applied to a model case to compare the actual cost and that determined from the current calculation method. Issues with the current method were identified by this comparison. Based on this, this research proposes a method of calculating the total actual cost caused by a suspension in a public construction project that is appropriate for calculating the additional indirect cost generated by a suspension in a public construction project on a long-term continuing contract.
Keywords
Prolongation Cost; Time Extension; Suspension; Indirect Cost; Long-term Continuing Contracts;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
1 Cushman R. F., Carter J. D., Gorman P. J. and Coppi D. F. (2001). "Proving and Pricing Construction Claims" New York, Aspen Publishers.
2 Adrian, James J. (1993). "Construction claims : A Quantitative Approach" Illinois, Stipes Publishing Company.
3 Jeong, K., Park, Y. and Lee, J. (2012). "Study on introduction of 'Pre-Agreement system for Additional Incidental Cost' related to construction time extension." Korean Journal of Construction Engineering and Management, KICEM, 13(6), pp. 33-44.   DOI
4 Koo, B. S., Yu, J. H., and Park, J. H. (2015). "Formal Estimation Method for Optimal Budget Appropriation of Highway Construction Projects under Long-term Continuation Contracts." Journal of the Korean Society of Civil Engineers, 35(6), p. 1407.
5 Kim, j., Kim, K., and Han, J. (2011). "An Administration Model for Causes of Delay in Construction Projects to Decide Time Extension Responsibility." Korean Journal of Construction Engineering and Management, KICEM, 12(6), pp. 31-41.   DOI
6 Lee, G., and Kim, Y. (2001). "A Case Study on the Calculation of Delay Damages for Contractors according to the Extension of Contract Period." Korean Journal of Construction Engineering and Management, KICEM, 2, pp. 305-310.
7 Ministry of Strategy and Finance (2010). "Improvement of the Payment Method on the Additional Costs due to Construction Extension" Research Report, Korea.
8 G. A. Barraza, W. E. Back, and Fernando Mata. (2004). "Probabilistic Forecasting of Project Performance Using Stochastic S Curves" Journal of Construction Engineering and Mangement, 130(1).
9 G. A. Barraza, W. E. Back, and Fernando Mata. (2000). "Probabilistic Monitoring of Project Performance Using SS-Curves" Journal of Construction Engineering and Management, 126(2).
10 Jeong, K., and Lee, J. (2016). "Improvement of the Calculation Standard for Prolongation cost of Domestic Public Construction Project" Korean Journal of Construction Engineering and Management, KICEM, 17(4), pp. 95-102.   DOI
11 Jin, E., Kwak, S., Kim, D., Kim, H. and Han, S. (2006). "Prediction of Final Construction Cost and Duration by Forecasting the Slopes of Cost and Time for Each Stage" Proceedings of KICEM Anunual Confetence.
12 Lee, K. (2001). "A Study on the Reasonable Compensation and Institutional Improvement of Delay Damages for Contractors According to the Prolongation of Contract Period" MS thesis, Chung-Ang University, Seoul, Korea.