• Journal of the Korea Institute of Building Construction
• /
• v.9 no.5
• /
• pp.103-110
• /
• 2009

A construction project consists of a variety of contracts for the completion of work. The large number of contracts involved in a single project increases the likelihood that disputes will arise between the parties involved regarding the terms of service. Actually, there are many disputes that are caused by a change 0 order. While such disputes should be settled by interpreting the terms stipulated in the agreement entered between the two parties, the process of dispute settlement is often restricted to arbitration and lawsuit, and as a result the parties tend to avoid it due to its inefficiency. For this reason, in Korea it is hard to find cases of interpreting terms of service, while in the U.S. it is easy to find diverse cases of interpreting terms of service, since there is a process of dispute settlement by each stage by the party who has placed an order. Therefore, this study presents analysis of case studies of contract changes, looking specifically at changes in the scope of the work, changes in quantity, changes in the period of implementation, changes in the method of implementation or attitude, changes in items provided by the government or the delivery place, and the acceptance of such change procedure by a contractor, and the adjustment of a reduction.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.47
• /
• pp.129-156
• /
• 2010

Since the 1970s, international construction employers have commonly requested first demand guarantees upon their contractors as a form of security for due performance of their works. Contractors prefer the greater protection offered by more traditional forms of security requiring presentation of an arbitral award or other evidence of the caller's entitlement to compensation. Many contractors nonetheless feel that they have no alternative but to provide these unconditional guarantees in order to compete. However, these unconditional first demand guarantees are controversial and have given rise to numerous disputes both in arbitration and litigation. Disputes arising from first demand guarantees can be broken down into a) applications to prevent a perceived fraudulent or otherwise unfair or improper calling of a guarantee, b) claims arising from such abusive calls and c) claims relating to the consequences of such calls even if the call itself may not be abusive as such. The contractors should carefully assess the risk of an abusive call being made bearing in mind the difficulties he may face in seeking to prevent such a call. He should also bear in mind the difficulties, delays and cost he is likely to encounter in seeking to recover any monies wrongfully called. One option would be to provide that the call can only be made once and to the extent that the employer's damages have been assessed or even incurred or even for the default to have been established by an arbitral tribunal or court. Another option would be to provide that any call be accompanied by a decision of a competent and impartial third party stating that the contractor is in breach. For example, such a requirement could be incorporated into a construction contract based on the FIDIC Conditions by submitting this decision to a Dispute Adjudication Board. Another option would be to provide for the "ICC Counter-Guarantee Scheme". In sum, there would appear to be room for compromise between the employer and the contractor in respect of first demand guarantees by conditioning the entitlement to call such guarantees to the determination of a competent and impartial third party.

• Journal of the Korea Institute of Building Construction
• /
• v.22 no.1
• /
• pp.103-114
• /
• 2022

In the area of construction defects, residents have a tendency to focus on visually identifiable defects, while construction companies focus on defects that affect the structural and functional integrity of apartment housing. Accordingly, construction companies and residents have conflicting views on defects in apartment housing. To address this issue, this study aimed to accurately identify the main disputes surrounding defects in multi-family housing complexes or multi-dwelling unit apartment housing caused by such sharply different perspectives and suggest improvement measures. First, standards to determine different defects and remuneration standards between the Ministry of Land, Infrastructure and Transport and the court were analyzed. Then, problems were derived through an analysis of defects in past court cases, and the differences in perspectives between construction companies and residents were identified based on defect data from various construction companies. To tackle these issues, a classification measure for establishing a defect database for multi-family homes was also proposed.

• Journal of the Korean Institute of Rural Architecture
• /
• v.10 no.1
• /
• pp.67-74
• /
• 2008

Recently, construction of bridges in rural areas has been increased to preserve the natural environment. However this brings forth the disputes over rights of light in farmland. In urban areas, the disputes over rights of light have been settled on the authority of the national architectural law and only sunshine hours for winter solstice are considered. Basically, the point at issue is different between each case. The main issues of the dispute in rural area were the reduction of the crop cultivation and the increase of the heating cost in winter. The purpose of this study is to review the mediation process in national environmental dispute resolution commission to resolve these issues, and to set up the analysis method of rights of light and modelling equation of solar position. Furthermore, we aimed at analyzing the damaged hours of daylights in rural housing and the infringement rate of daylight in farmland through the case study. In conclusion, we estimated the sunshine hours during the whole damaged periods according to the elements of bridges, and presented the solution process of dispute over rights of light due to the construction of bridge in rural area.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2023.11a
• /
• pp.55-56
• /
• 2023

The number of defect disputes occurring in apartment houses is increasing year by year, and among them, disputes caused by defects in tiles account for 28.2% of the total, which is an important defect in tiles. A representative tile defect in the defect dispute is the lack of tile backfill. Another dispute occurred that the standards for each organization are different as the 100% standard of the Ministry of Land, Infrastructure and Transport's building construction standard and 80% standard of the Architectural Institute of Korea's Building Technology Guidelines. In this study, it was analyzed the relationship between the amount of tile backfill and the amount of tile defects based on 100 defect litigation court appraisal documents. It was observed that the amount of defect in tile works tended to decrease as the amount of tile backfill increased. By presenting an appropriate amount of mortar to fill behind tiles in a defect dispute, the effect of reducing the defect dispute can be expected.

• Journal of Arbitration Studies
• /
• v.8 no.1
• /
• pp.35-54
• /
• 1998

In recent years, there has been a significant increase in the number of large-scale projects involving construction, public works and the installation of industrial plants. These projects usually require the participation of a number of public and private entities and involve more than one contract. When disputes arising in connection with these projects are to be submitted to commercial arbitration, the parties often wish to have all disputes decided by one arbitral tribunal, in a single comprehensive proceeding. It has become apparent that the resolution of all major disputes which may arise in connection with such a project in a single comprehensive arbitration proceeding presents a number of advantages. The arbitral institution can provide for a multiparty arbitration proceeding only where all of the parties have agreed to it either at the time the disputes arise or at the time the parties enter into their various contractual arrangement. The discussion about multiparty arbitration centers on the question whether courts should have the power to order the consolidation of arbitration proceedings absent the consent of the parties. As the U.S. Supreme Court has repeatedly denied certiorari to cases presenting the consolidation-question, the conflict between the Court of Appeals' positions remains. The common method of selection in a bilaterial proceeding is the formula by which each party appoints one arbitrator and the two party-chosen arbitrators then mutually agree on a third, neutral arbitrator. This popular method poses, however, both a policy and practical problems In a 3-party-proceeding. It seems that the better solution is to have courts or arbitral institutions appoint all arbitrators for a multiparty proceeding. American courts have employed a variety of methods to appoint arbitrators for multiparty disputes in cases in which the parties had not provided for or could not agree upon a method themselves.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.54-62
• /
• 2001

Although claims and disputes may be never avoided in construction industry, until 1998, there are no systematic claims in the public sector in Korea. But, because of IMF, Contractors have been recognized that cost management is essential factor and contractual right can be demanded against the Public Orderer. Many affirmative effect such as, appearance of new professional service, prevention of lower quality construction, restrain of unnecessary budget expenditure, arrangement of duplicated or triplicated liability and revision of unnecessary administrative control may be anticipated through alleging claims, but in site representative manager and construction company may have ambiguous fear, somebody tried to allege claims. Therefore, to activate systematic construction claims, 32 public construction project claims alleged by contractors from 1998 to 2001 were analyzed, inactivated reasons of claims were examined and contractor's action plan to allege claims was suggested in this paper.

• Korean Journal of Construction Engineering and Management
• /
• v.10 no.6
• /
• pp.48-57
• /
• 2009

As recent construction projects have gradually become larger in size and complex, construction documents such as drawings and specifications revealed the limitations that can not express all the necessary information. Due to the lack of stipulations on the contract, disputes arise among contracting parties. Traditionally, many construction companies in Korea make an unfair agreement with the clients so that the irrational items are included in their contract documents. Potential dispute factors are triggered as a result of misleading or omitted items on the written documents. This paper analyzed the civic counseling cases obtained from the public procurement service in Korea, and identified the potential dispute factors that can occur during pre-dispute stage alone with their influence analysis. The results found from this study can be used for the development of checklists that prevent the dispute in the process of construction projects.

• Korean Journal of Construction Engineering and Management
• /
• v.19 no.4
• /
• pp.70-81
• /
• 2018

Claims in the construction industry can have a serious impact on the profitability of the project or can even result in project failure if it fails to take appropriate prevention. In order to properly prevent and respond to the potential claims and legal disputes throughout the project execution, it is necessary to continuously accumulate informations and clearly define the roles and responsibilities of the important activities systematically. Based on these needs, this study develops and verifies the project information management system(PMIS) that can prevent and respond possible claims for construction projects. Developed system includes such management modules as schedule, cost, PM/CM, design, collaboration, and claims. The system was validated by adopting it to the practical projects. The results showed that information systems tailored to the construction claim need to elevate users' familiarity to be more useful. Besides, the system can be more functional when used by both owners and contractors.

• Korean Journal of Construction Engineering and Management
• /
• v.20 no.5
• /
• pp.72-82
• /
• 2019

The purpose of this study is to find out how any organizational response or dispute-related consulting has a significant impact on management performance before or during a dispute over a construction subcontract dispute. In this study, multiple regression models were used to analyze the impact on consulting performance. According to the result of the analysis, the positive effects on the overall external consulting effect is influenced by five variables such as financial values, increase of the number of disputes, construction of response system by contents, construction of response system in each period, dispute response external response system. The original business operators were also more likely to be affected by internal activities of conflict response companies and the extent to which external response systems were established. This means that the supply and demand service provider's business environment is relatively poor, forcing it to be lower than the internal and external activities and influences of the original business operators of the conglomerates.