• Journal of the Korea Institute of Building Construction
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• v.8 no.1
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• pp.97-102
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• 2008

The report of the Korean Board of Audit and Inspection(BAI) on May 2007 indicates the problems of Life Cycle Cost (LCC) analysis and evaluation in the Design-Build(Turn-Key) and alternative bidding system. The point which the report indicates is that the cost estimation system for LCC analysis has nothing in common each other and there's no consistency among the repair cycle and ratio per facilities parts. For solving these problems, BAI demands the establishment of the guidelines for LCC analysis and evaluation from the competent authority Korean Ministry of Construction And Transportation(MOCT). The objective of this study is to develop the improvement directions for LCC analysis and evaluation which are suitable to the public construction projects especially for the Design-Build and alternative bidding system in Korea. For this study, the LCC related raws and regulations, LCC analysis guidelines of public cooperations, actual condition of LCC analysis and evaluation which include, the elements of LCC, the estimation rules of the initial cost and the maintenance cost, the analysis standards of time value of money, etc. are investigated to provide the improvement directions for LCC analysis and evaluation.

• The Journal of Information Systems
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• v.25 no.4
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• pp.63-85
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• 2016

Purpose While the popularity of C2C auction platforms such as eBay is gradually decreased, this domain is still undermined to explain online bidding behaviors. Online bidders sometimes engage in impulsive bidding due to some of the online auction characteristics. Therefore, this study develops and tests a model of the impulsive bidding exhibited by online bidders in C2C auction platforms. Based on S-O-R framework, our model posits that both perceived time-pressure and competition intensity affect cognitive absorption which ultimately influences the impulsive bidding. Design/methodology/approach This study collected survey data from 214 C2C auction participants, who have prior experience on impulsive bidding and tested both measurement model and structural model by using CB-SEM (covariate-based structural equation modelling) technique. In this study, by using AMOS 20.0, we tested the measurement model for its overall fit, item reliability, and validity and further conducted the structural model to test our proposed hypotheses. Findings Based on our results, we found that perceived tim-pressure and competition intensity were positively related to cognitive absorption. We also found that the cognitive absorption was positively associated with impulsive bidding behavior. In this study, by developing our research model in S-O-R framework, we provide an alternative theoretical mechanism to describe online impulsive bidding behavior.

• Proceedings of the Technology Innovation Conference
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• 2000.06a
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• pp.123-151
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• 2000

The aim of this paper is to investigate how the public procurement policy exerts an effect upon the technology innovation of the firm and to make alternative proposals how to reinforce the effect. Although the pubic procurement process based on its monopsonic idiosyncrasy implies the means to lead the firms' supply function, the present system has contributed a little to accelerate the technology innovation. In fact, the system is lacking of the evaluation capability referring to the technological computer among the bidding films. So as to reinforce the function of technology innovation of the public procurement policy, it is necessary to improve the procurement institutions, in particular bidding and contract system. Finally, the paper propose, on the on hand, to enlarge the application range of the total bidding system in order to apply more strictly the technology evaluation standards on bidding, and on the other hand, to multiply the competitive proposal and the incentive contract type.

• Asia-Pacific Journal of Business
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• v.13 no.1
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• pp.213-230
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• 2022

Purpose - The purpose of this study is to find out any potential factors for explanatory variables when calculating the virtual successful bid rate in case of no collusion. Design/methodology/approach - An empirical analysis was conducted in this study with a regression analysis that included 725 bid samples under the public construction technical type bidding. Findings - The result of the basic analysis showed that there are several factors affecting the successful bid rate. First, collusion variable; second, government variable; third, successful bidder design score variable and the number of bidder variable among bidding features; fourth, turnkey variable based on the alternative method; fifth, civil works variable and plant works variable based on building work; sixth, asset variable and the fourth-quarter performance difference variable. However, the technical proposal method variable among bidding features was found to be statistically insignificant in column(4). Research implications or Originality - The significance of this research is that new variable such as the government variable and the fourth-quarter performance difference variable were added in the regression model, which showed statistically significant research results.

• Journal of the Korea Institute of Building Construction
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• v.10 no.6
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• pp.109-116
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• 2010

A construction project consists of many types of contracts. In the process of selecting the successful contractor after bidding, there will inevitably be fierce competition, which may lead to corruption or bribery. Even after signing the contract, during the period of settling the amount of the contract, bribery could occur. Such corruption could harm the development of the construction industry. It is, therefore, necessary to establish a strategy to prevent corruption by strengthening the transparency of the bidding process. In this study, to prevent corruption in the construction industry, a new service is proposed in which the successful bidder is selected by a professional third party, and the introduction of diverse delivery systems for construction projects and the invigoration of alternative methods of settling disputes are also proposed in this study.

• KDI Journal of Economic Policy
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• v.32 no.2
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• pp.144-170
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• 2010

This paper considers the effect of various types of procurement auction system on competition focusing on the rate of successful bidding. We analyze the number of bidders and the rate of successful bids using online procurement data of the Public Procurement Service. The average number of bidders is 301 and the average rate of successful bids is 87.42% while the weighted average rate is 75.13%. These numbers show that there is quite strong competition among bidders and the rate is lower as the expected price is higher. When we analyze the data of price procurement auction, the rate is also shown to be lower as the expected price is higher. Furthermore, the rate decreases as the number of bidders increases which naturally makes the competition stronger. Meanwhile, the analysis finds that the inclusion of the onsite bidding, the PQ(Pre-Qualification) result, or major-10 winning companies cannot explain the rate much in our data. In case of turnkey-alternative, the average rate of successful bidding for 484 cases record 90.20%. The average is 84.89% with 120 alternatives and 91.97% with 364 cases of turnkey. The reason why the rate of turnkey-alternative is lower than that of price procurement auction is the lack of competition as well as the systematic difference. By setting up a model, we are able to explain the difference in rate caused by the respective reason. When we suppose there are 3 bidders in case of price procurement auction for a project that exceeds 100 billion won, the rate is expected to be around 64%. This implies that difference of 26% is caused by the systemic difference and 3% by the lack of competition. Therefore, we conclude that the difference in rate between turnkey-alternative and price procurement auction is caused mainly by the systemic difference. In case of PPP(Public Private Partnership) projects, among 154 projects in total, only 40% has more than 2 bidders that compete. The average number of bidders is 1.88 which is less than 2, and the average rate of successful bids is 90%. In sum, under the price procurement auction, there is strong competition which is reflected by the rate of successful bids. However, there is room to decrease the rate by strengthening the competition under the turnkey-alternative. Also with PPP projects, we expect the rate can be steadily reduced with revived competition among bidders.

• Journal of the Korean Society for Railway
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• v.8 no.5
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• pp.460-469
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• 2005

Turnkey contract system is an effective ordering system for the ordering organizations that technical engineers are insufficient for their construction projects. It is possible to reduce project duration and to improve project quality in an integrated contract system between design and construction. However, owners can have a difficulty caused from unitary responsibility system. This study analyzes present situation and problems of turnkey contract system including railway projects. The result includes various methods for improving the system based on the analysis of bid price and selection procedure.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.731-736
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• 2005

The governmental attitude toward private investment and financing for infrastructure projects has changed from the initial prohibition to the current encouragement in China, which has been embodied in the legal documents and administrative process. However, the problem of identification, bidding, and approval procedure for privately financed infrastructure projects has been observed in policies and administrative measures promulgated by different or even the same government branches, which is prohibitive factors for smooth project implementation. After analysis of the identification, bidding, and approval process of infrastructure projects, the authors proposed a simplified and alternative procedure and clarified the key points of relevant project documents.

• Environmental and Resource Economics Review
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• v.17 no.2
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• pp.327-347
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• 2008

This study proposes a new answering mechanism of deciding whether to purchase or not under uncertainty-real risk answering mechanism (R-RAM) for real transaction and hypothetical risk answering mechanism (H-RAM). It IS also. shown that the traditional answering mechanism (TAM) assumed in most of existing contingent valuation methods should be applied in a real transaction without uncertainty. While the willingness to pay (WTP) being simply compared with the bidding price m TAM, the mean of WTP should be greater than the bidding pnce at least by the risk premium for a purchase decision m R-RAM and H-RAM. Only difference between R-RAM and H-RAM is risk premium. The H-RAM takes a smaller risk premium than the R-RAM. This study proposes the contingent valuation method (CVM) with H-RAM could be an alternative to reducing the under-or over-estimation of WTP by comparing the WTP estimates obtained from three different CVMs with TAM, R-RAM and H-RAM.

• Journal of the Korean Institute of Landscape Architecture
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• v.33 no.2 s.109
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• pp.111-121
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• 2005

The Seoul Housing Corporation pronounced an alternative design competition and a bidding for Eunpyeong New Town in December of 2004. At first many construction companies were interested in the first New Town Project. But at last a few companies had proposed the alternative design and construction cost. This project needed a conjunction of design ideas and technology know-hows. And the client wanted the brand power of construction company. Ultimately the Corporation hoped that the first New Town Project will end up with high quality successfully. This competition had started with the original construction drawings. Then it needed some alternative ideas and the lowest cost. There were two drawings of non changeable part and changeable part. Non changeable parts are structure like housing unit plan, underground parking lots. Changeable parts are outdoor layout, interior design and building facade. So we tried all ideas of landscape technology and design principles within limited guidelines. The author applied new technology like tilted rooftop greening and sustained container greening on high-rise apartment house. This green technology will be the first trial in Seoul and in the world as well. Daewoo Corporation have accumulated greening technology through the researches by national funding since 2002. Through this New Town Project the green technology will go forward step by step.