• Korean Journal of Construction Engineering and Management
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• v.11 no.2
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• pp.3-14
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• 2010

A high degree of management skills and functions is essential to the success of construction projects. While the various construction management delivery methods have been realized as the solutions, Korean government is planning to introduce 'CM at Risk Method' to the public construction projects. However, even if its effect has been verified successful in the international market, it must be considered before legally adapting the method that it would be suitable to our public sector, In this respect, the purpose of this study is to evaluate and analyze feasibility of 'CM at Risk Method'. In order to do that, 15 attributes of construction projects were found, which were suitable to 'CM at Risk Method' in general, 'CM at Risk-GMP Method', and 'CM at Risk-Cost Reimbursable Method' and suitability of each attribute to each of 9 categories of public construction facilities was evaluated by questionnaire survey to CM specialists. Results showed that 'CM at Risk Method' might not bring improper effect to the industry but due to the characteristic of public sector, the effect would be very limited.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.67-73
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• 2006

Alternative project delivery methods including design-build and CM at Risk have evolved as a means of meeting owner's diverse needs and implementing project efficiently with limited budget and time in more competitive construction environment. It is time to consider adopting alternative project delivery methods, especially CM at Risk, for domestic construction industry to enhance competitiveness and to provide various options for owners so that they can select more appropriate project delivery methods for the facility being planned. This research report derives suggestions from investigating how CM at Risk has been evolved in the US construction market. Besides the analysis of CM at Risk market in the US construction industry, the characteristics of companies whose market share are in Top 100, the type of facility usually built by this method were investigated. Based on the analysis of CM at Risk in the US, the prepositions in adopting CM at Risk to domestic construction industry and the possibility of adopting this method have been identified.

• Korean Journal of Construction Engineering and Management
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• v.19 no.3
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• pp.61-69
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• 2018

The buildings are getting enormous and more complex as well as the requirement of the owner which wants diverse and efficient. Moreover advanced management is necessary for construction services and a new method of delivering project is now required. In order to expand the delivering method and the construction industry, we have to introduced the CM at Risk method. However, despite the fact that six years have passed already the CM at Risk regulation was introduced, the contract amount in significantly lower than that of the CM for fee, and also there is no CM at Risk project in the public sector. As a result, three pilot projects are currently underway for the LH(Korea Land & Housing Corporation) in order to set up a CM at Risk for the public sector. However, detailed regulations related to CM at Risk have not yet been implemented in Korea. Therefore, in this study, I am trying to understand the risks that could incur when practitioners participate in the three pilot projects that are currently underway and employed in the public sector wherein the CM at Risk is normally introduced. Based on the results of this study, It will be able to utilize as a basic data for future CM at Risk delivery system improvement and enactment.

• Korean Journal of Construction Engineering and Management
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• v.22 no.6
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• pp.44-54
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• 2021

As the CM at Risk market grows recently, designers and CM companies that have been performing agency CM services have been showing their interests to participate in the CM at Risk projects. With the assumption that agency CM companies with a lot of experiences and know-how in the field of construction project management have created the circumstances to enter the CM at Risk market, this study investigates the competencies necessary for the agency CM companies to carry out the CM at Risk projects. The compentencies to run the CM at Risk projects were identified based on the literature review. A survey was conducted to identify the competencies that need to be supplemented first. The survey results revealed that competency related to partner companies, finance and guarantee, risk and claim, and project cost were identified to have a higher level of complementation compared to other competencies. In addition, considering that the level of competency that need to be secured is high, as the level of holding of all competency is on average 76% of the required level, in the beginning, small-scale CM at Risk projects with relatively low risk are mainly carry out, strengthening competency and then increasing the scale is considered more appropriate strategy.

• Korean Journal of Construction Engineering and Management
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• v.17 no.3
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• pp.23-31
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• 2016

The domestic market of CM at Risk has not been activated yet. It was analyzed duo to the fact that construction owners didn't have confidence in CM at Risk, because of the concerns regarding CM firms reliability, service, specialty, system and feasibility. Therefore, this study analyzed the problems to find the reason for declines in orders through a business diagnosis based on the Business Model Canvas(BMC) and set up the direction of business model improvement with one on one expert interviews. Additionally, we suggested the sub-activities for the business model improvements of CM at Risk service that are divided into 9 building blocks. Through this method, we determined that we would need preceding innovation activities such as good communication with customers, reinforcement of subcontract and excellence in project operations to convert the successful practice and settlement of the CM business model based in BMC. It is expected that the business model suggested from this study would contribute to improvement of CM at Risk competition and the differentiation strategy when compared with other firms. Also, it would be used a basis data to develop CM at Risk business model in the future.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2009.05b
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• pp.199-202
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• 2009

Turn-key and CMF(CM for Fee) have been selected as procurement paths of large public projects in Korea. However, recently, researches and discussions on CMR(CM at Risk) have been popular as the Korean government seeks for alternative procurement paths to enhance the performance. In the CMR projects, the part who is responsible for construction management should predict and control the potential risks for guaranteeing benefits. In this research, CMR projects in which a general contractor plays the role as CMr is mainly analyzed. We give attentions to risk management during construction process given that subcontractors, main parts in this phase, work in various ways and thus more chances for faults exist. In this case, CMr manages risks to control the procedure of project. So, potential risk factors can constitute the database, and that database can be matched to following activity. And construction manager can forecast measures of risk using the result of matching. This chain of activities increase efficiency in roles of CMr on CMR(CM at Risk). Furthermore this study will propose one of the solution of Construction Management Module.

• Korean Journal of Construction Engineering and Management
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• v.17 no.2
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• pp.3-11
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• 2016

CM at Risk has been introduced in Korea to keep up with the global standards of construction management and provide a higher quality of cm service in line with a rapid change of the construction industry recently. However, it is widely considered that more time would required to settle down the system due to a lack of understanding towards CM at Risk, shortage of reliability and low capability to manage and undertake CM at Risk. Therefore, this research is analyzed problems of contract types, open book policies, and contract conditions of 33 numbers of projects undertaken by a bespoke domestic construction management firm in this research. Moreover, this research is suggested a method to establish an open book policy of CM at Risk aiming a better customers satisfaction through staff training, simplifying and improving a payment system, and a way to settle down an open book policy by improving a performance management system on site. It's expected that this research will contribute to a more competitive system with more dominating the market and a differentiation of the service so as clients to rely more on the CM at Risk.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2020.06a
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• pp.48-49
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• 2020

Recently the diversification of construction market and the continuous reduction of construction amount are raising the need of alternative delivery method in the construction industry. The foreign advanced companies actively adopted the CM at Risk delivery method where they perform the service of agent CM in the design phase, and agree GMP(Guaranteed Maximum Price) with the client at the time of 50~80% completion of design. Even in Korea they began to apply that method to pilot projects. In CM at Risk, through the early participation of builder, the level of design completion can be improved and the change order and construction period delay can be minimized. On the other hand, GMP is usually calculated when the design is about 80% complete, so there is uncertainty in the construction cost. Therefore, in this research, the increased amounts of construction cost are analyzed in a number of public construction projects, and GMP calculation process is proposed using the analysis results and CBR(Case-Based Reasoning) technique to reduce the construction cost increase in the construction phase.

• Korean Journal of Construction Engineering and Management
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• v.20 no.3
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• pp.22-30
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• 2019

The purpose of this study is to derive basic data of the Guaranteed Maximum Price(GMP) process and to present specimens that can be used at the time of execution of CM at Risk project in South Korea. CM at Risk project is issued in South Korea, but the actual data is lack. On the other hand, CM at Risk project is universalized and the market of the CM at Risk is steadily growing. Because of that, in this study, The United States cases was selected as a sample. GMP consists of CM's fee, CM contingency, project direct cost, project indirect cost, allowance. GMP negotiations are performed before the end of design completion, and after 3 rounds of estimation comparison, preliminary GMP is confirmed. GMP can be multiple contract and it is useful for Procurement of long lead materials and early construction. If the actual cost is lower than expected GMP, sharing of the saving is an option since the conflict of interests between the client and the contractor can occur.

• Korean Journal of Construction Engineering and Management
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• v.23 no.5
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• pp.56-64
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• 2022

Although pilot projects have been actively carried out from 2017 to present to institutionalize CM at Risk, one of the major tasks for innovation in the construction industry, standards and processes related to Design VE, a key tool for determining GMP in the pre-construction phase, have not yet been established. Therefore, through research and operation status related to CM at Risk and Design VE, and survey on project participants' perception, the problem of the existing design VE process was derived, and the design VE process suitable for the CM at Risk project was proposed. The application plan was proposed in three aspects: Schedule, Cycle, and Process, and the appropriateness and applicability were verified through FGI. The results of this study are expected to be used as basic data on the establishment and legislation of order standards to be made in the future.