• Korean Journal of Construction Engineering and Management
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• v.17 no.2
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• pp.21-30
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• 2016

The current PF project is entirely relying on construction company's credibility. As such, it has increased a negative and bad recognition in domestic real estate economy. In addition, PF experts has a perception that a project's safety of future cash flow profitability is more important than the construction company's credibility. So many PF experts make an effort in order to set aside safe project structure of PF and analyse systematically the risks of the project. In common feasibility study of the PF Project, financial specialists and real estate specialists are forecasting and evaluating the suitability of the project through reviewing the development profit from the project of sales. However, cash flow analysis and evaluation from the perspective of mid-sized construction companies are still in the primary level. Therefore, this study has analysed the current feasibility study and go/no go decision making procedures. Then the authors have a new cash flow analysis method from the perspective of mid-sized construction companies, by improving the feasibility study and go/no go decision making procedures.

• Journal of the Korea institute for structural maintenance and inspection
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• v.21 no.3
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• pp.9-18
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• 2017

Construction Management at Risk (CMAR) is a project delivery method that enables CM companies to deliver projects at a Guaranteed Maximum Price (GMP). General contractors can apply CMAR from the initial design phase right through the construction phase to reduce risks and improve project performance. One of the major advantages CMAR offers is that it permits a general contractor to provide a comprehensive suite of preconstruction services, including estimating, a constructability review, value engineering, drawings and a specification review, green building, and Building Information Modeling(BIM), among others. However, general contractors in South Korea currently provide only limited preconstruction services using CMAR because few CMAR projects have yet been implemented in Korea and their experience using the method is therefore limited. This benchmark study of how foreign general contractors utilize CMAR in their projects, particularly during the preconstruction process, its purpose, and the roles and responsibilities of each of the different participants in successful implementations thus provides invaluable information and will serve as a useful guide for Korean contractors seeking to incorporate CMAR preconstruction services in their projects and thus improve the competitiveness of their construction businesses.

• Korean Journal of Construction Engineering and Management
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• v.6 no.4 s.26
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• pp.80-90
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• 2005

Activity durations retain probabilistic and stochastic natures due to diverse factors causing the delay or acceleration of activity completion. These natures make the final project duration to be a random variable. These factors are the major source of financial risk. Extending the Stochastic Project Scheduling Simulation system (SPSS) developed in previous research; this research presents a method to estimate how the final project duration behaves when activity durations change randomly. The final project cost is estimated by considering the fluctuation of indirect cost, which occurs due to the delay or acceleration of activity completion, along with direct cost assigned to an activity. The final project cost is estimated by considering how indirect cost behaves when activity duration change. The method quantifies the amount of contingency to cover the expected delay of project delivery. It is based on the quantitative analysis to obtain the descriptive statistics from the simulation outputs (final project durations). Existing deterministic scheduling method apply an arbitrary figures to the amount of delay contingency with uncertainty. However, the stochastic method developed in this research allows computing the amount of delay contingency with certainty and certain degree of confidence. An example project is used to illustrate the quantitative analysis method using simulation. When the statistical location and shape of probability distribution functions defining activity durations change, how the final project duration and cost behave are ascertained using automated sensitivity analysis method

• Korean Journal of Construction Engineering and Management
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• v.9 no.6
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• pp.137-146
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• 2008

Both competent authorities and private entrepreneurs face plenty of risks when negotiating BTO(Build Transfer Operation) methods of PPI(Private Participations in Infrastructures) projects. Also, success and failure of projects largely depend on the concession agreement contract. In this study, for more efficient negotiation, major issues are examined, and quantitatively analyzed to find out not only the relationship but also the characteristics of which these issues share. Questionnaire research was conducted through both research and by experts who were divided into an ordering agency, design company and constructor. Characteristics of major issues were quantitatively analyzed using the Likert index method, ANOVA(ANalysis of VAriance) and AHP(Analytic Hierarchy Process) analysis. Case studies were examined in order to estimate construction cost, rates of return, government finance support, level of operation-revenues guarantees, estimating operational costs and usage fees. With these 6 items, relative priority, relative impression which is sensible to risk and extent of difficulty in presenting data which is objective were quantitatively analyzed by the ordering agency, design company and constructor groups. From the analysis, there were some similarities between the design company and constructor groups while there was less of similarities between the ordering agency and design company or constructor. The government is diversifying the methods of project promotion, and PPI project from infrastructure-centered to public culture facilities are being expand. The current study will provide not only supporting efficient negotiation but also revitalizing PPI projects.

• Information Systems Review
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• v.18 no.1
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• pp.79-103
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• 2016

The Korean Army has to construct a system that will enable it to cope immediately with the flexible military relationships in Northeast Asia by systematizing and improving the efficiency of operations. These improvements include building a smart and strong army, concentrating on cost-effective combat skills, maximizing the utilization of private resources, and establishing a military structure based on information and technology. Accordingly, this study proposes solutions to solve the problems affecting the success of outsourcing in the defense industry. Unlike outsourcing in other government ministries, outsourcing in the national defense sector may be unrealistic because this strategy is related to the renovation project of the Ministry of the National Defense. In general, the objective of outsourcing in the defense industry, similar to other businesses, is to improve efficiency and not to reduce troops and national defense budget. Several factors, such as identification and security guarantee, risk reduction, cost saving, quality improvement, the reliability of enterprise, and professional technology, are necessary to ensure outsourcing success in the national defense sector. In terms of effectiveness, the improvement in service quality significantly influences outsourcing success in the national defense sector. Eventually, the national defense forces must be strengthened to prevent the provocative actions of North Korea and other threats by improving identification, sense of national security, and quality unlike the current outsourcing of the government, as well as emulating German GEBB or PMC, which utilizes social capital.

• Journal of the Korea Institute of Building Construction
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• v.18 no.2
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• pp.151-159
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• 2018

Accident rate in the construction industry of South Korea is increasing every year, and it represents the highest percentage among industries. This shows that activities performed to prevent safety accidents in the country are not efficient when it comes to reduce the accident rate. In order to resolve this issue, a model for the prediction of human accidents should be established. In addition, it is required a quantification study based on pattern of human accidents. Therefore, the objective of this study is to quantify uncertainty of human accidents risk and predict how to change in various circumstances by using Monte Carlo Simulation. To achieve the objective, first, pattern of human accidents was defined. Second, insurance claim payout and information of human accidents during 14 years in construction site were collected. Third, descriptive analysis is conducted to determine the characteristics of the accident pattern. Fourth, to quantitatively analyze the pattern of the human accidents, the population of each accident occurrence and payout were estimated. Finally, estimated populations was analyzed according to characteristics of distribution by using Monte carlo simulation. In the future, this study can be used as a reference for developing the safety management checklist in construction site and development of prediction models of human accident.

• Korean Journal of Construction Engineering and Management
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• v.16 no.4
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• pp.3-11
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• 2015

Apartment developers consider the initial sales rate as an important indicator for their success of apartment development projects. They tried to achieve a secure level of initial sales rate. In spite of its importance, there is little research on the initial sales rate because of the difficulties in gathering proper data for analysis. This study, however, collects the data in initial sales rates in Su-won from various sources such as construction companies, marketing companies, sales companies and so on. By using this rare data, this study analyses the initial contract rate of apartment and estimates the initial contract rate by sales price. The result of this study shows that important of land area ratio, brand, and distance to park. It is expected that the proposed model will be used for apartment developers in sales planning phase.

• Korean Journal of Construction Engineering and Management
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• v.10 no.1
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• pp.91-101
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• 2009

The factors of uncertainty such as work delay could cause many problems, for example, increase of construction cost and terms of work, and the deterioration of quality. Because of these, the uncertainty risk is regarded as an important management factor to obtain the success of construction project. So, the systematic management plan about the uncertainty factors is needed because it plays an important role in the completion of entire project. And also analysis of some factors which can cause the work delay can be one way of improving construction project's certainty and making it competitive. In this reason, we have to make an effort to set a priority based on analysis of quantitatively numerical value about work delay factors to manage them effectively. Thus, this study aims to suggest the basic data for the effective management and prevention of work delay in steel-frame work which is progressive actively now, along with increasing of demand of high-rise buildings by analyzing each reasons of work delay factors and also by suggesting important management factors that are coded according to each construction work using FMEA method which could give a data about the importance of work delay factors through quantitatively numerical value.

• Korean Journal of Construction Engineering and Management
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• v.14 no.1
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• pp.82-90
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• 2013

In the construction industry, there are so many qualitative factors affecting the performance of a project. So it is crucial to measure the factors in an effective way in order to analyze the interrelationship among the various factors. To improve the performance level of a project, it is also important to identify the most appropriate management practices which are inter-linked with the subject project. The purpose of this study is to develop a project performance management system (PPMS) to quantitatively analyze the variety of project performance data and identify the best management practice to increase the potential level of a particular performance area. Using a comparative statistical method, this study developed a quantification method and web-based computerized system to enhance the usage of the system. The system, however, is still under the validation stage because of the shortage of data set. In the future, when more and more completed project data are stored in the system, the system would play a crucial role in predicting the performance level and matching the best management practice for a subject project. In addition, the system can also be modified as a tool for a business- or industry-level system by incorporating the existing enterprise resource programs.

• Korean Journal of Construction Engineering and Management
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• v.20 no.1
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• pp.73-85
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• 2019

Since the beginning of a new century, many Korean construction and engineering companies are facing a very dynamic and fast changing business environment which includes severe competition, higher risk, economic depression, declining revenues and profits, etc. In order to cope with these challenges, they need to secure special capabilities to actively adapt to the paradigm changes. One of those capabilities could be project management capability which allows us to manage organizational resources dynamically and integratively based on project portfolio management concept. The objective of this study is to investigate how the dynamic capability of a project-based organization to control the resource affects the firm performance and the competitive advantages. Data was collected from the construction and engineering companies in South Korea by using survey questionnaire, and analyzed for empirical tests by using statistical methods such as structural equation modelling and path analysis. The results showed that the organizational resources, if they had the VRIN characteristics, would have positive impacts on creating the dynamic capabilities for project organization. In turn, the dynamic capabilities of a project organization would have impacts on improving business performance and creating competitive advantages. Also, it was found that the organizational resources may have direct impact on business performance and competitive advantages. The academic contribution of this study is that it attempts to integrate resource based view and the dynamic capability theory about creating competitive advantages for project based organization. This study also provided practical implications to the companies in construction industry by showing how to use organizational resources strategically to create competitive advantages.