• 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.

• 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.

• Journal of the Korea Institute of Building Construction
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• v.18 no.3
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• pp.295-303
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• 2018

In the DBB delivery system, the design stage and the construction stage are separated. Because of this, design changes frequently occur, and problems such as construction cost overrun, schedule delay, and quality deterioration happen as well. Recently, in the construction industry CM at Risk(CM@R) delivery system, which can systematically solve the above-mentioned problems of DBB delivery system, meet various demands of clients, and overcome the limited cost and period. In the CM@R delivery system, the contractor negotiates for a maximum guaranteed price(GMP) with the client at the design stage, and the CM performer carries out the construction within the GMP. However, uncertainties are inherent in the GMP calculation because the calculation is based on unfinished drawings and documents. In this study, a Probabilistic Earlier GMP Calculation Method by combining a probabilistic tool of Monte Carlo simulation with a case based reasoning is proposed so that the uncertainty in GMP calculation is reflected. After the earlier GMP is calculated, a process to calculate the $2^{nd}$ GMP at the time of around 80 % of detailed deign and to negotiate with the client to fix the final GMP is proposed. The Probabilistic Earlier GMP Calculation Method is verified through the case study. In this study, researchers set the range of GMP through the proposed probabilistic GMP calculation and tried to reduce the risk through negotiation between the client and the CM performer. The proposed method and process would contribute to the successful introduction of CM@R in Korea.

• 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.5-8
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• 2009

This paper investigated the qualitative introduction status of domestic major construction company. And that focused on a point of suggestions about CM at Risk introduction. The survey analysis showed that three importan suggestions. First, the biggest obstacles factors to CM at Risk introduction that related laws is lagging amendment. Second, we have to improve the available hands ability in domestic major construction company. And last, we have to do that using uncomplicated design and standard design form. Consequently, environmen analysis for the introduction and example project is urgently required.

• 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.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.1002-1006
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• 2005

When we compare CM system with Design Bid Build system, we can see two striking features in CM system. First, CMr participates in construction team along with Owner, Designer and Constructor. The newcomer can change boundaries of function and responsibility. Second, Compatibility through each phase and Objectivity of decision-making become more important, because relation among stakeholders changes from a rectilinear to a network. However, it is not clear how the risk of completion is reasonably treated. So we have to think about the relations between Owner and CMr, CMr and Specialist Contractor from a point of trade risk. This paper covers them.

• 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.