• International conference on construction engineering and project management
• /
• 2009.05a
• /
• pp.800-807
• /
• 2009

The limited public funds available for infrastructure projects have led governments to consider private entities' participation in long-term contracts for finance, construction, and operation of these projects to share risks and rewards between the public and the private. Because these projects have complicated risk evolutions, diverse contractual forms for each project member to hedge risks involved in a project are necessary. In light of this, Build-Operate-Transfer(BOT) model is considered as effective to accomplish Public Private Partnerships(PPPs) with a characteristic of an ownership-reversion. In BOT projects, the government has used such an incentive system as minimum revenue guarantee(MRG) agreement to attract the private's participation. Although this agreement turns out critical in success of BOT project, there still exist problematic issues in a financial feasibility analysis since the traditional capital budgeting theory, Net Present Value(NPV) analysis, has failed to evaluate the contingent characteristic of MRG agreement. The purpose of this research is to develop real option model based on option pricing theory so as to provide a theoretical framework in valuing MRG agreement in BOT projects. To understand the applicability of the model, the model is applied to the example of the BOT toll road project and the results are compared with that by NPV analysis. Finally, we found that the impact of the MRG agreement is significant on the project value. Hence, the real option model can help the government establish better BOT policies and the developer make appropriate bidding strategies.

• International conference on construction engineering and project management
• /
• 2011.02a
• /
• pp.330-334
• /
• 2011

Build-operate-transfer (BOT) projects are privatized infrastructure undertakings that face long-term investment risks and uncertainties. To ensure these projects can be completed on time and operated according to performance specifications, governments usually require BOT concessionaires to furnish performance bonds as a security. However, in order to attract investment, governments often provide abandonment rights for concessionaires to deal with investment risks and uncertainties. In the context of real options, these abandonment rights will increase project value, but the furnish of performance bonds will reduce this value. Currently in the BOT context, there is no real option model that can handle explicitly the impact of performance bonds on project value. In this paper, a real option valuation model is derived to deal with this important issue. The Taiwan high-speed rail project is used as a case study to show the applicability of the proposed model.

• Journal of Information Technology Services
• /
• v.4 no.1
• /
• pp.57-69
• /
• 2005

The ERP system which has been adopted as a tool for integration of information systems and for innovation of business process. And it is regarded to be able to maximize the productivity of business process and achieve process innovation based on the best practice incorporated in the ERP. To achieve process innovation through ERP, strong sponsorship from top management and building consensus through the entire organization is required to be backed UP. There are many cases of the failure of Process Innovation due to reluctance of corporate members to change. In the result of the case study, it seems to be difficult to build the consensus of the related groups to ERP project. There are still argues after project, on whether the project was success or not. Through the AHP analysis for the success factors, it is explored that the reason is that several groups of the company had different expectation for the project. And to achieve the aimed process Innovation, the project members in the related departments should build the consensus of expectation on the project.

• Korean Journal of Construction Engineering and Management
• /
• v.4 no.3 s.15
• /
• pp.119-127
• /
• 2003

Among project delivery methods, Design-Build method is becoming an increasingly preferable alternative to traditional contracting method. The Design-Build delivery method was first introduced in Korea, 1975. But it still has been producing many problems. The previous researches had been suggested several ways to improve the Design-Build project delivery but it seemed to have had no effect whatsoever. This research proposes the success model for Design-Build delivery method through the 4 steps. First, find the proper modeling method. Second, establish the As-Is model for analyzing the circumstances of Design-Build method. Third, to begin with analyzing the As-Is Design-Build model and previous researches, establish the problem model. Finally, find success factors and circumstances through the overseas Design-Build system, and then establish the success Design-Build model.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.294-298
• /
• 2003

Recently, Design-build project as delivery system public construction sector tends to be increased according to the Masterplan for promotion of construction technologies, and construction projects are increasing their complexity, variety and scale. And owner's requirements become various. Preliminary design for design eligibility judging of design-build has been designed excessively to get a good point and this tendency includes the elements which is capable of wasting the budget. Because of excessive design, owners require to apply VE study into the design development phase but in the Design-build system, VE application has not been of no effect that owners expect, owing to the characters of lum-sum contracts. The purpose of this study is to propose the plan for effective application of VE in the design development phase in order to solve the problems such as excessive design of preliminary design in the design-build project. This study established plans for VE application through investigating and analyzing VE application case and then proposed the applications in the aspect of regulations and contracts, parties participated in project, VE operation through research for verification of usefulness.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• 2007.11a
• /
• pp.531-534
• /
• 2007

In the current domestic design-build contract, design and construction are separated due to prohibition of outside work. but instead the design-build contract adopts a method of fulfilling each assignment as a joint venture, which makes it difficult for participants to communicate each other and often require changes of design. also, It is difficult to performance efficiency project that they don't want to share useful information related to design and construction. In this study suggests how to maxmize the effiency of the project by proposing a process model connected with an efficient partnering and constructability in a deign development phase of design-build constract.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• 2007.11a
• /
• pp.41-47
• /
• 2007

The selection of the reasonable project delivery system (PDS) is crucial for a successful performance of a project, which means to achieve project objectives. Furthermore, the project performance has been tightly related to the selection of PDS appropriate to pertinent project characteristics. In this context, the ministry of finance and economy of Korea launched two new project delivery systems called "Best Value Contract (Design-Bid-Build)" and "Bridging Contract (Design-Build)" in October of 2007 by revising enforcement ordinances of "Act on Contracts to Which the State is a Party". For efficient operation of the new project delivery systems, this paper suggested a PDS selection model which supports decision making of the reasonable PDS for a pertinent project by assessing characteristics of the public construction projects, both quantitatively and qualitatively. In addition, a PDS performance evaluation model was proposed in order to get feedback on the result of the PDS selection and the operation for the succeeding project. The standard models suggested in this paper might be used as a tool to support the decision making of the public organizations.

• Korean Journal of Construction Engineering and Management
• /
• v.4 no.3 s.15
• /
• pp.128-136
• /
• 2003

The contractors which execute the design-build project have difficulties in design management and contract administration in the pre-construction phase because they have managed construction projects focused on only construction phase so far. Moreover, they have to manage the design development stage without any contingency following-up various design revisions from the design reviews of outside experts. Therefore, the design management in the design development stage is a critical success facto. of the design-build project. The objective of this study is to structure the problems in the management skill for design development phase in the domestic design-build projects and to suggest a design development management method to settle the problems. To achieve these objectives, this study 1) analyzes the prior studies about the design-build procurement methods, 2) designs and performs a case study to embody the problems of the domestic design-build projects, and 3) proposes a method of design development management by analyzing the results of case study and interviewing experts.

• International conference on construction engineering and project management
• /
• 2013.01a
• /
• pp.338-343
• /
• 2013

Integrated Project Delivery (IPD) as a delivery method fully capitalizes on an integrated project team that takes advantage of the knowledge of all team members to maximize project outcomes. IPD is currently the highest form of collaboration available because all three core project stakeholders, owner, designer and contractor, are aligned to the same purpose. Compared with traditional project delivery approaches such as Design-Bid-Build (DBB), Design-Build (DB), and CM at-Risk, IPD is distinguished in that it eliminates the adversarial nature of the business by encouraging transparency, open communication, honesty and collaboration among all project stakeholders. The team appropriately shares the project risk and reward. Sharing reward is easy, while it is hard to fairly share a failure. So the compensation structure and the contingency in IPD are very different from those in traditional delivery methods and they are expected to encourage motivation, inspiration and creativity of all project stakeholders to achieve project success. This paper investigates the compensation structure in IPD and provides a method to determine the proper level of contingency allocation to reduce the risk of cost overrun. It also proposes a method in which contingency could be used as a functional monetary incentive when established to produce the desired level of collaboration in IPD. Based on the compensation structure scenario discovered, a probabilistic contingency calculation model was created by evaluating the random nature of changes and various risk drivers. The model can be used by the IPD team to forecast the probability of the cost overrun and equip the IPD team with confidence to really enjoy the benefits of collaborative team work.

• Proceedings of the Korea Database Society Conference
• /
• 1999.06a
• /
• pp.403-413
• /
• 1999

Today's businesses are experiencing intensive global competition and the most accelerating pace of change ever. Competitors have sprung up that were not even on the business's radar. This environment impacts all decisions and strategies as business try to dominate their market or their industry merely to survive. So recently most of organizations are considering on building the data warehouse system to pursuit the business intelligence. We need the proper model to guide the approach to plan building data warehouse system when we want to plan it in considering the organizational status. Therefore we suggest a model to decide the approach to build data warehouse considering the project's environmental factors. First we review Ronald S. Swift(1998)'s five environmental factors that we have to consider when planing to build data warehouse. Then we propose a model to decide DW approach by the degree of those factors to be measured. DW approaches in this model are classified in conservative approach, technological approach, increasing approach. enterprise- wide approach, and ideal approach.