• Journal of the Korea Institute of Information and Communication Engineering
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• v.10 no.12
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• pp.2121-2125
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• 2006

This paper shows the calculation system of construction cost rate to telecommunications engineering service that is based on the tenth article of the Engineering Technique Promotion Law. The existing construction cost rate had been calculated using the experiential statistics or quoted the foreign construction cost rates. This paper apply the theoretical method to calculate the construction cost rate instead of the existing method. To calculate it more reasonably, this paper apply the characteristic own of the current construction cost rate. The result of this paper can be introduced to calculate the construction cost rate for the telecommunication engineering service.

• The Journal of the Korea Contents Association
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• v.16 no.8
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• pp.661-670
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• 2016

In 2000, post-construction evaluation was introduced for the purposes to evaluate demand, cost, and construction period of public construction projects and to reduce errors of public order agencies. However, pricing guide of post-construction evaluation has not been established, which becomes a cause of quality degradation of post-construction service and conflict occurrence. This study suggests the pricing guide in the form of percentage of construction cost method and cost plus fee method based on data of post-construction evaluation. This study investigates the construction costs and service costs for post-construction evaluation and conducts the comparative analysis of 'percentage of construction cost method' and 'cost plus fee method.' The analysis result shows 'cost plus fee method' is more accuracy than 'percentage of construction cost method.' In particular, cost plus fee method includes various correction coefficients, such as distance, area, and integration, in order to reflect the project characteristics of each infrastructure, and suggests linear construction (roads, railways), nonlinear construction I (housing and industry complex), and nonlinear construction II (airports, seaports, dams, water and sewage).

• Korean Journal of Construction Engineering and Management
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• v.13 no.2
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• pp.3-10
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• 2012

The current enforcement regulation of "Construction Technology Management Act" prescribes calculation standard of environmental preservation cost in construction site. According to this standard, environmental preservation cost is calculated by using the quantity-per-unit costing method or applied fixed rate on direct cost. However, when calculated by using the quantity-per-unit costing method it is few items to put in the budget according to standard of construction estimate and in the case of using the fixed rate on direct cost it is not considering various characteristics of the construction site. Therefore, it is needed a improvement plan of estimating method and management system for environmental preservation cost. In this study, it surveyed the actual state of the environmental preservation cost according to magnitude of project, site location, anti-pollution facilities and etc. over 38 road projects. The research reported in this paper environmental preservation cost was variously distributed over construction sites. Thus it needs to estimating method and management system to consider characteristics of construction site for environmental preservation cost.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2020.11a
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• pp.179-180
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• 2020

In the budgeting guidelines, there are rules for calculating design fee and direct costs. However, only the design fee is calculated excluding the direct cost, which causes the cost to be insufficient. Therefore, this study is designed to analyze representative cases where direct costs are insufficient, draw out problems, and propose a way to improve design fees.

• Korean Journal of Construction Engineering and Management
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• v.6 no.5 s.27
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• pp.186-192
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• 2005

The purpose of this study is to find the reality of environmental management cost in construction projects and to suggest some policies in order that owners appropriate the environmental management cost reasonably in the construction budget for reducing the environmental pollution at job sites. We surveyed the actual state of appropriating and expending the environmental management cost over 122 construction sites. According to the results of the survey, while the appropriated rate of the environmental management cost was 0.59% of the total construction cost. the expended rate reached at 0.94%. When examining the antipollution facilities which were operated in job sites, the investment for equipment against air-pollution such as tire washer, dust-proof device was relatively higher than other antipollution equipment. As the method appropriating the environmental management cost, we concluded that a quantity-per-unit costing method is more reasonable than appropriating at a fixed rate of total construction cost considering that there is little correlation between total construction cost and the environmental management cost. To do so, antipollution facilities that must be examined at a design or estimation stage of a construction project should be prescribed by the law. Moreover, referenced cost data for the quantity-per-unit costing should be prepared and officially published.

• Korean Journal of Construction Engineering and Management
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• v.22 no.3
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• pp.79-90
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• 2021

In domestic public construction, disputes are increasing due to differences among stakeholders regarding contract price adjustment. In particular, the actual cost-plus fee for overhead costs due to the schedule extension cannot be agreed upon at the administrative phase, and most of them seek judicial judgment. Thus, this study aims to propose a 'sufficiently satisfactory' alternative to reach an agreement before disputes in order to minimize disputes related to the calculation of additional overhead costs. To this end, this study proposes three alternatives based on the rate method. Firstly, when calculating additional overhead costs, it is not calculated as an actual cost-plus-fee method, but as a rate compared to direct labor costs among net direct costs. Secondly, the calculated indirect labor costs are compensated for up to the legal maximum of legal limit costs such as general management costs, profits and so on. Thirdly, it reflects overhead costs increased or decreased due to change orders. Risks were analyzed by collecting expert opinions on the proposed methods and applying actual cases. Finally, as a result of investigating the level of consensus for each stakeholder, it was confirmed that all stakeholders could agree regardless of the size of the company. The result of this study is expected to as a useful tool among stakeholders in the construction fields that can be able to easily agreed upon.

• The Journal of the Korea Contents Association
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• v.18 no.9
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• pp.44-54
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• 2018

In the construction project, the design field has a crucial effect on the success or failure of the final product, and it is becoming more important as a core area of national industrial development because it creates high value added by technology. In addition, since the design work is carried out based on professional technical personnel, in order to secure the quality and competitiveness of the design, it is necessary to continuously input the excellent manpower and develop the technology, and above all, the appropriate design cost must be ensured. However, as a result of reviewing the current status of the design cost criterion in Korea, problems such as mixed cost calculation method, inaccuracy of construction cost ratio method, and inactivation of cost plus fixed fee method were analyzed. Therefore, it is difficult to calculate the fair value reflecting the characteristics of the project when calculating the construction design price. Therefore, the price criterion should be improved so that the fair value of the design can be determined according to the contents of the project, By analyzing the correlation and multiple regression analysis of the projects and price information of the completed road construction design, the factors influencing the design price and the level of influence were analyzed.

• Korean Journal of Construction Engineering and Management
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• v.16 no.3
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• pp.152-164
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• 2015

Enhancing clarity and transparency of the pricing guide for technical services for public construction works enables the prediction and reimbursement of the service cost for project owners and bidders, while it would also yield benefits for engineers who carry out the construction tasks. In order to improve the global competitiveness of construction service industry, the government revised its pricing guide for techical services for construction works recently, moving away from its previous percentage-of-construction-cost method towards the Cost Plus a Fee Method. However, since the Cost Plus a Fee Method results in the rise of the service price by 153%~197%, there is the need for a review on the method and basis of the adjustment in order to avoid controversies regarding the application of the revised method. In this context, this paper analysed the 2014 revision of the pricing guide for technical services for public construction works through comparison with foreign cases including those of the US and the UK. The analysis yielded the conclusion that, while the shift towards Cost Plus a Fee Method which is widely used in advanced economies is a very meaningful change in large measure, certain aspects still remain problematic. Unlike in advanced economies, the detailed break-down shows the direct labor cost includes certain indirect expenses. Also, indirec expenses are admitted so comprehensively as to include overhead costs and technology royalties. These problems results in redundant estimation of certain expenses, and obstructs transparency in spending details. This paper proposes various improvement measures to address these issues.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2020.06a
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• pp.165-166
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• 2020

The standard for the cost calculation in the field of domestic construction engineering can be largely divided into the construction cost ratio method and the actual cost addition method. However, the standard for calculating the cost of the construction cost ratio method is a trend to switch to the actual cost addition method due to limitations such as not reflecting the characteristics of the construction. Therefore, this study aims to derive implications by investigating and analyzing examples of cost standards in the field of overseas construction engineering, such as the United States, and deriving directions for improvement in domestic cost standards in the future.

• Journal of the Architectural Institute of Korea Structure & Construction
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• v.33 no.12
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• pp.11-18
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• 2017

The safety inspection cost of the construction work was based on commercial facilities classified as a single building. Therefore, it is not possible to fully reflect the characteristics of the multi-building construction project such as apartment houses. Therefore, this study suggests a reasonable estimation model that can fully reflect the characteristics of the multi-building construction project. The safety inspection cost estimation model proposed two models such as construction cost ratio method and cost plus fixed fee method. And these models were simulated by the apartment construction work and compared with the current standard. As a result, the current construction cost ratio method has shown that the safety inspection cost tends to be overestimated as the construction size increases. Therefore, the proposed model has reflected characteristics of the multi-building construction project, so that it can reasonably estimate the safety inspection cost more than the current standard.