• Korean Journal of Construction Engineering and Management
• /
• v.13 no.1
• /
• pp.67-76
• /
• 2012

There are index adjustment method and item adjustment method in estimation methods for price fluctuation rate of public constructions. A relevant regulation has put item adjustment method as a principle, but in most construction, contract sum adjustment has been made by index adjustment method. Hence, this study, by figuring out width and causes of the gap between index adjustment method and item adjustment method through direct comparative analysis, solved inequality caused by difference between them and suggested a rational way against irrationality of each method. For building operations of public housing construction, a detailed fluctuation rate by index adjustment method and item adjustment method of construction cost elements of the same construction, that is, direct material cost, direct labor cost and historical construction cost was estimated to analyze difference between two adjustments and establish its cause. Across the analysis, it was found that fluctuation rate by item adjustment method was estimated lower than that by index adjustment method and difference between methods for estimating fluctuation rate of quotation unit price and application of index unrelated to construction type and construction nature are main causes of the difference. This study has a significance in that, for smooth contract sum adjustment between contracting parties, it practically proved the real difference between adjustment methods by conducting comparative analysis of the difference in direct correspondence way.

• Journal of the Korea Institute of Building Construction
• /
• v.10 no.2
• /
• pp.75-80
• /
• 2010

With the intensifying of price competition and structural diversifications, the uncertainty of the domestic housing market has been increased. This highlights the importance of the planning stage of construction projects, and the increased need for a higher level of accuracy in approximate estimates. Currently, a number of research and development programs to calculate construction cost at the initial planning stage are being conducted. However, there are few cases in which local characteristics are considered in deriving the results. If local calibration can be conducted during estimates, more accurate cost estimates will be enabled. This could also play a major role in ensuring the success of a project. Therefore, the purpose of this research is to develop a calculation methodology and a model for a local index based on the historical data of public apartment buildings, and to derive a local index that supports accurate construction cost estimates.

• Journal of the Korea Institute of Building Construction
• /
• v.2 no.4
• /
• pp.105-112
• /
• 2002

The EVMS(Earned Value Management System) comes from C/SCSC which was first released by the United States Department of Defense in December 1967, and preyed very powerful and efficient project management tool from a lot of practices. Although it is an excellent tool, we can not be succeed appling foreign system due to the differences of construction culture and law between the Korean and US construction industries. EAC(Estimate at Completion) is one of the most important functions in the EVMS. The purpose of this study is to propose the improved EAC method according to the performance indices better than old that and to prove from examples. In advance, the improved EAC method is to estimate more exactly costs and to promote efficiency in construction projects.

• KSCE Journal of Civil and Environmental Engineering Research
• /
• v.28 no.5D
• /
• pp.665-675
• /
• 2008

The objective of this paper is to provide an approximate cost estimating model for tunnel that can be utilized both in quick construction cost estimating for design alternatives, and in evaluating efficiently the cost effects according to the environmental changes during design and construction stage. To meet this requirement, this study analyzes critical cost factors influencing tunnel construction costs. The cost factors include 7 elements such as rock drilling method, advancing method, type of detonator, loader capacity, unit weight and soil volume change factor, length of tunnel. This paper investigates the cost variance according to the change of the cost factors. The result is expected to be used in formulating approximate tunnel cost estimating model.

• Korean Journal of Construction Engineering and Management
• /
• v.8 no.2
• /
• pp.173-181
• /
• 2007

The purpose of this study is to estimate elemental costs of an apartment building. The adapted research method includes a case study from $^{\circ}{\AE}H^{\circ}{\phi}$ construction company. The results of this study are as follows: 1) An elemental cost format of an apartment building is proposed, 2) An elemental cost table based on a case study of $^{\circ}{\AE}H^{\circ}{\phi}$ construction company is suggested.

• Korean Journal of Construction Engineering and Management
• /
• v.5 no.6 s.22
• /
• pp.203-211
• /
• 2004

This study is the results to survey on the problems and improvable Policies for current escalation system in construction contracts, through a Delphi survey to experts. From the survey results, it is desirable to decide the fluctuation rate of construction cost, which is the requirement of escalation clause, on the basis of inflation rate or construction cost index. The desirable price fluctuation rate is proposed as a $3\%$ level. However, it is difficult for construction companies to cope with the sudden increase of material price in advance, arising from short-term shock factors such as exchange rate and international raw material's price. Accordingly escalation system for specified materials, as an exceptional mode, should be introduced. As a method to calculate the fluctuation rate, ARCA(adjustment rate for the categories of articles) is more desirable than ARI(adjustment rate for an index), because the ARCA can be more reflected the characteristics of each construction work.To rationalize the ARI method, it is needed to announce the wage index, material index and machinery expense index via detailed classification by construction types. Also, it is desirable to prescribe the bidding date as a starting date of the price change, rather than contact signing date. considering the price change can happen since the biddiilg stage.

• Korean Journal of Construction Engineering and Management
• /
• v.4 no.4 s.16
• /
• pp.220-226
• /
• 2003

The Residential Building Cost Index which presents price variation of construction resources required in a residential building project in single value, has been compiled to evaluate appropriate level of the price variation. This research reviewed the compilation methodology for Residential Building Cost Index based on comparative analysis on domestic statistics and proposed the Residential Building Cost Index through a variety of case studies. It would facilitate monitoring the price variation of a residential building cost and contributes to enhancing the applicability of construction cost data.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.349-352
• /
• 2003

Using EVMS can probably cause lots of confusion under the different systems and different circumstances of the construction industry between Korea and The United States, because The United States has wide experience in applying to EVMS during several decades but Korea has not. Therefore this research deals with the problem about Performance Indices in forecasting EAC(Estimate at Completion) among the problems of using EVMS. A target index of testing in this research is the Performance Indices used in the research at home and abroad in the past and those is applied to APT projects within the country with statistical method. Through this method, we can catch the tendency and the properties of the Performance Indices for applying to Korea.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• 2006.11a
• /
• pp.274-277
• /
• 2006

The EAC(Estimate at Completion) among existing methods, which estimate cost and time effectively, help managers anticipate changeable several results at the point of $15{\sim}30%$ in the project progress. However, this method may cause such some problems as not to consider the periodically changing circumstances caused by construction risks or uncertainties which can affect the cost and time in the project, and to regard collected and accumulated data only as a single value when predicting the results on the progress. Accordingly, it is very difficult to accept the even small range of variability based on the anticipation of EAC. Consequently, the study focuses on the possibility methodology to anticipate time and cost accurately on the way to utilize EVMS(Earned Value Management System), and also suggest the way to perform the right estimation of EAC as considering various risks and uncertainties in construction projects.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2012.11a
• /
• pp.111-112
• /
• 2012

Korean government is planning to supply a half million public and permanent rental houses from 2013 to 2018 for settlement of non-homeowners. It is requested an objective criterion to appropriate the budget for the rental houses construction project cost. In this study, construction cost indices, which reflect the inflation trend of construction resources, were explorated to suggest a effective methodology for the construction cost estimation of therental houses. We figured out the future construction cost indices using several scientific methods, and seven estimated indices values were shown. It is required an additional research to select the proper value among the analyzed indices.