• Title/Summary/Keyword: Construction Contract Practice

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A Study on the Improvement Contract System of to Prevent Domestic Public Construction Claims (국내의 공공건설 클레임 예방을 위한 계약제도 개선방안 연구)

  • Jung, Min-Jung;Cho, Young-Jun
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.239-242
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    • 2007
  • Many contractors have overlooked the construction contract general conditions and it was a bad construction practice. Today, construction project is very complex and complicated. This requires a networked contract document and results in a complicated contract conflict hardly to be solved. Therefore, to reduce the construction dispute and to enhance construction practice, clarification of definition of Owner, several conditions to be revised, insertion of design supervision were suggested in this paper.

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A Study on the Suggestion of Construction Contract Practice in the Public Project through the analysis of Construction Claims (건설클레임 사례분석을 통한 입찰 및 계약제도 개선에 대한 연구)

  • Cho Young-Jun;Hyun Chang-Taek
    • Korean Journal of Construction Engineering and Management
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    • v.2 no.1 s.5
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    • pp.78-87
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    • 2001
  • Recently many construction claims related to the ommission and discrepancy of design document are alleged since 1998 and various dispute resolution methods are appeared. But many contractors alleged claims are not satisfied with the result because of not sufficiently reflecting construction practice. The purpose of this study is to analyze the liability of contract privity from the view point of the contract related law and to analyze the claims and claim factor, and to suggest construction contract practice in the public project. The construction claims related to the design document may be minimized, through (1) the accumulation and retrieval of standard forms by owners' type, (2) the usage of specified specification considering project characteristics, (3) the materialization of detail subsurface design and various contract method in heavy engineering construction.

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A Study on Performance Analyses of Korea's Bidding and Contract Systems for Public Construction Projects

  • Beak, Seung-Ho;Kang, Tai-Kyung;Park, Wonyoung;Lee, Yoo-Sub
    • Journal of Construction Engineering and Project Management
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    • v.5 no.3
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    • pp.18-28
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    • 2015
  • Bidding and contract systems are used for public construction projects to select contractors following fair competition principles and to execute national budgets effectively. Many challenges have arisen due to a lack of transparency and fairness and because bidding practices have been luck-based. Few comprehensive or comparative analyses have been conducted on the performance and limitations of bidding and contract systems, and empirical analyses designed to improve policies on and the practice of such systems are lacking. This study empirically analyzed current bidding and contract systems to seek ways of improving them. The study proposes several alternatives to resolve the problems with and irrationalities of the current system: 1) improving bidding and selection systems by changing them from a luck-based price competition into a technical merit- and value-based competition; 2) improving the assessment criteria to meet the current market level of bid and winning prices; 3) adjusting contractual responsibilities and sharing structures to meet the current trend; and 4) strengthening the competitiveness and expanding the social responsibility-based procurement systems of construction companies.

APPLICATION OF CONTRACTORS' RISK PREFERENCE ON THE EVALUATION OF THE PHILIPPINE GOVERNMENT STANDARD CONTRACT

  • Visuth Chovichien;Joel Cesarius V. Reyes
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.144-152
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    • 2009
  • Construction contracts involve the allocation or distribution of the risks inherent to a construction project between or among contracting parties. However, it has been a common practice that only one party drafts the contract due to practical reasons and particular policies of various organizations. Interviews were conducted on some local contractors to gain their meaningful insights and standpoints on the allocation of each risk. These results were compared with the actual risk allocation using the Philippine government standard contract and risk principles from the literature to determine if their considered opinions provide a plausible alternative. A sample application of this evaluation is presented for construction-related risks and risk allocation recommendations are provided in the end.

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Some Practical Issues on the International Construction Contract (국제건설계약(國際建設契約) 실무상(實務上) 유의점(有意點))

  • Kim, Seung-Hyeon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.25
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    • pp.3-40
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    • 2005
  • Many Korean construction companies have been performing a variety of overseas construction projects since the 1970s. It is unfortunate that in many cases they have had to suffer big losses caused by errors and defects in the design and construction of the projects. In the author's opinion, however, there were losses that could have been avoided if they had understood better the feature and content of the particular construction contract. Few lawyers and scholars in Korea have been interested in the research and study of international construction contracts. This is mainly because they do not have access to practical sources outside of Korea for them to research and study since the contracts undertaken have been dealt with by law firms in other jurisdictions to which the disputes apply. This article is aiming primarily at the introduction of the issues which the practitioners are likely to confront in the process of reviewing and performing the international construction contract. In some cases solutions are sought about these issues based upon the FIDIC standard terms and conditions, the actual experience of practice, and UNIDROIT Principles, etc. It is reasonable to say that all the issues related to the international construction contract cannot be covered in a short article like this. The author wishes this article could induce subsequent studies on international construction contracts for further research. It has to be noted that from time to time Korean construction practices have been compared to the international ones for better understanding. This article mostly includes cases where the Korean construction companies go overseas for their projects, while there are some cases where foreign developers and financial investors participated in domestic projects in which international construction contracts forms were adopted. A few precedent domestic writings about international construction contracts seems to lack emphasis on the points that there are several standard construction contract forms and that they are different. The differences are mainly in accordance with who bears the design responsibility, how the owner has to make progress payments to the contractor and who the funding source for the project is. This article tries to make it clear that there are significant differences between the standard contract forms, e.g. a simple construction form, a design-build form and an EPC/turnkey form of contract. Again, the author hopes that this article can arouse the interest in the international construction contracts from both academic and practical fields, so that many subsequent advanced articles can help our construction industry become much more competitive in the world through awareness of the methods of procurement and administration of the contracts.

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A study on the Ethics Characteristics according to Service and Practice of Construction Manager (건설사업관리자의 업무수행에 따른 윤리 특성 고찰)

  • Lee, Sang-Beom
    • Korean Journal of Construction Engineering and Management
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    • v.12 no.1
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    • pp.97-106
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    • 2011
  • Construction Management is the overall management of the project as construction manager and the owner are united together. Construction manager's role is to conduct the overall or partial construction administration in the 'design, bid, build' process, in the owner's interests with maintaining technical neutrality. Construction manager is becoming one of new professionals in the building process and the contract defines their roles and the range of services, so high level of ethnics are required. This study suggests the legal status of the construction manager and the ethnic standards and the ethnic's characteristics. In conclusion, firstly, the legal characteristics of the administration of construction management are the delegations contract, the responsibility of negligence and the duty of due diligence, abided by the contract that ties between the owner and the construction manger. Secondly, the administerial characteristics of the construction management are the role of mediator, the service of professional technology, accountability to the owner and publicness. Thirdly, due to these characteristics, as a professional, the standard of ethnic assessment for the construction project manager are intention, act and result, so with the relation to that, morality, deontology and consequentialism have been suggested in this study.

TOWARDS A RELATIONAL CONTRACTING FRAMEWORK IN THE AUSTRALIAN CONSTRUCTION INDUSTRY: AN INITIAL FRAMEWORK

  • Melissa Chan;Bambang Trigunarsyah;Vaughan Coffey
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.117-123
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    • 2011
  • The Australian construction industry is characterized as being a competitive and risky business environment due to lack of cooperation, insufficient trust, ineffective communication and adversarial relationships which are likely lead to poor project performance. Relational contracting (RC) is advocated by literature as an innovative approach to improve the procurement process in the construction industry. Various studies have collectively added to the current knowledge of known RC norms, but there seem to be little effort on investigating the determinants of RC and its impact on project outcomes. In such circumstances, there is lack of evidence and explanation on the manner on how these issues lead to different performance. Simultaneously, the New Engineering Contract (NEC) that embraced the concept of RC is seen as a modern way of contracting and also considered as one of the best approaches to the perennial problem of improving adversarial relationships within the industry. The reality of practice of RC in Australia is investigated through the lens of the NEC. A synthesis of literature views on the concept, processes and tools of RC is first conducted to develop the framework of RC. A case study approach is proposed for an in-depth analysis to explore the critical issues addressed by RC in relation to project performance. Understanding the realities of RC will assist stakeholders in the construction industry with their investment in RC.

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A Study on the Rule of Warranty in the English Law of Marine Insurance (영국 해상보험법상 담보(warranty)에 관한 연구)

  • Shin, Gun-Hoon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.42
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    • pp.275-305
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    • 2009
  • Marine insurance contracts, which intended to provide indemnity against marine risks upon the payment of price, known as a premium, originated in Northern Italy in the late 12th and early 13th centuries. The law and practice were later introduced into England through the Continent. It is, therefore, quite exact that English and European marine insurance law have common roots. Nevertheless, significant divergences between English and European insurance systems occurred since the late 17th century, mainly due to different approaches adopted by English courts. The rule of warranty in English marine insurance was developed and clarified in the second part of the 18th century by Lord Mansfield, who laid the foundations of the modern English law of marine insurance, and developed different approaches, especially in the field of warranty in marine insurance law. Since the age of Lord Mansfield, English marine insurance law has a unique rule on warranty. This article is, therefore, designed to analyse the overall rule of the rule of warranty in English marine insurance law. The result of analysis are as following. First, warranties are incorporated to serve a very significant function in the law of insurance, that is, confining or determining the scope of the cover agreed by the insurer. From the insurer's point of view, such the function of warranties is crucial, because his liability, agreed on the contract of insurance, largely depend on in, and the warranties, incorporated in the contract play an essential role in assessing the risk. If the warranty is breached, the risk initially agreed is altered and that serves the reason why the insurer is allowed to discharge automatically further liability from the date of breach. Secondly, the term 'warranty' is used to describe a term of the contract in general and insurance contract law, but the breach of which affords different remedies between general contract law and insurance contract law. Thirdly, a express warranty may be in any form of words from which the intention to warrant is to be inferred. An express warranty must be included in, or written upon, the policy, or must be contained in some document incorporated by reference into the policy. It does not matter how this is done. Fourthly, a warranty is a condition precedent to the insurer's liability on the contract, and, therefore, once broken, the insurer automatically ceases to be liable. If the breach pre-dates the attachment of risk, the insurer will never put on risk, whereas if the breach occurs after inception of risk, the insurer remains liable for any losses within the scope of the policy, but has no liability for any subsequent losses. Finally, the requirements on the warranty must be determined in according to the rule of strict construction. As results, it is irrelevant: the reason that a certain warranty is introduced into the contract, whether the warranty is material to the insurer's decision to accept the contract, whether or not the warranty is irrelevant to the risk or a loss, the extent of compliance, that is, whether the requirements on the warranty is complied exactly or substantially, the unreasonableness or hardship of the rule of strict construction, and whether a breach of warranty has been remedied, and the warranty complied with, before loss.

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Application of Modifiable Bid of BOQ in Garak Market Modernization Project Phase 1 (가락시장현대화사업 1단계 물량내역수정입찰 적용 사례)

  • Cho, Kyung-Je;Kim, Hyung-Jin
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2015.05a
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    • pp.111-112
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    • 2015
  • Garak Market Modernization Project Phase 1, which is the public projects worth 1,75 billion won, was delivered by adopting modifiable bid of BOQ on the lowest price award system. The modifiable bid of BOQ system allows bidders to modify quantities based on their own drawings and construction specifications and requirements. It was initiated by the government for minimizing design error and for inducing technical competition between tenders by checking errors. At that time the bidding, it allowed modifying the BOQ all the works. In the construction phase, the responsibility for the design changes, due to mistakes and omissions on design documents and BOQ were disputed between the owner and the contractors. This study analyzed the problem of the system and addressed a need of improvement.

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Examining Change Order Reasons for Non-Structural Utility Support Projects in Healthcare Facilities

  • Genota, Naomi P.;Kim, Joseph J.
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.188-195
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    • 2022
  • Although issuing change orders is a common practice in the construction phase of any project, non-structural utility subcontractors are struggling and seek to find a way to reduce change orders. Therefore, this paper presents the analysis results on change orders to cultivate possible suggestions and solutions on how to reduce or minimize change orders in mechanical, electrical, and plumbing (MEP) works. Change orders in non-structural utility works are analyzed based on six categories such as rerouting and change of location, changes in weight, rejected design by Office of Statewide Health Planning and Development, District Structural Engineer, or the Structural Engineer of Record, unforeseen conditions, changed equipment, and owner-initiated change. The analysis findings showed that rerouting and changing location is the most significant cause, followed by unforeseen conditions. The results not only contribute to the existing body of knowledge on change order research area, but also help MEP contractors reduce the time and cost of change orders.

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