• Title/Summary/Keyword: Construction Management Fee

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Diagnostic Analysis and Influential Factors of CM Fee Estimation (CM 대가 산정방식의 문제점 분석에 대한 연구 -문화예술회관 사례를 중심으로-)

  • Yoo, Byeong-Gi;Jung, Chan-Young;Kim, Jae-Jun
    • Korean Journal of Construction Engineering and Management
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    • v.7 no.6
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    • pp.132-140
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    • 2006
  • On December, 1996, Construction Management(CM) was introduced in Korean construction industry due to its managerial efficiency proven in the international construction industries. However, It have had serious problems with many regulations, standards, manuals and details of practices considering its constituents and industry conditions. Especially, there were controversial points in the CM fee estimate; difference between the fee on the owner's view point and that from contractor's that impedes appropriate CM services. Therefore, this paper is to analyze public construction projects into Cm fee calculation such as fee as a percent of construction cost, cost plus fixed fee and contract price, and analyzed what is irrationality and why irrationality is made. So it makes a contribution to a study on standards for paper CM fee calculation.

Development Of a Project Sensitive Matrix Model For CM Fee Calculation (건설사업관리 대가 산출 모델의 방향 설정에 관한 연구)

  • Kee JunHo;Kim ChangDuk;Kim Yea-Sang
    • Korean Journal of Construction Engineering and Management
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    • v.1 no.4 s.4
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    • pp.91-97
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    • 2000
  • Construction Management(CM) has been introduced in Korean Construction Industry for its merits and benefits proven in International Construction Industries. However, many regulations, standards, manuals and details of practices considering its constituents and industry conditions have not yet to be developed. Of these, the standards and details of CM fee calculation should be developed in order to stretch its application toward public construction sectors as well as the private sectors. This research proposes CMFM(Construction Management Fee Model), a project sensitive matric CM fee model for CM fee calculation. The model calculates CM fees for modular services in a two by two matrix taking project phases on one dimension and CM services on the other.

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Improvement of estimating method for construction management service fee by case study (사례분석을 통한 건설사업관리 대가산정 방법 개선)

  • Lee, Ung-Kyun;Yoo, Wi-Sung;Kim, Dong-In;Kim, Tae-Hoon;Cha, Min-Soo;Cho, Hun-Hee
    • Korean Journal of Construction Engineering and Management
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    • v.13 no.4
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    • pp.16-24
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    • 2012
  • The objective of this paper is to suggest the improvement of estimating system for construction management (CM) service fee through the analysis of the previous literatures and criteria and case study. In order to do this, this paper considered the relevance of existing criteria to estimate the CM service fee, the condition of input ratio of engineering resources in the real cases, and current utilization strategy of nonresident technical engineers. Based on the analysis, the following problems were identified; a) the different estimating system for CM fee and construction supervision fee, b) impractical estimating system for the CM fee, and c) inappropriate allocation of human resources for CM. Consequently, this paper suggested the following 4 items for the improvement of the existing system; (1) modification of the current structure of CM fee calculation, (2) rationalization of current level of the CM fee which is required to be raised approximately 5.4 percent compared to design or supervision fee, (3) securement of elasticity of the input ratio of engineering resources from the inception phase, and (4) development of the utilization strategy of nonresident engineers based on the technical requirement of the jobsite. Thus, it is anticipated that this research would affect the compensation package of CM in order to make the estimation process of CM service fee more efficient and to revitalize CM as business.

A study on the estimate of construction management cost for public construction project in the CM for fee contract (정부공사 건설 사업관리 용역의 대가 산정에 관한 연구)

  • Chung J.-Young;Yoon Tae-Kwon
    • Journal of the Korea Institute of Building Construction
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    • v.6 no.3 s.21
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    • pp.115-122
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    • 2006
  • This study is aimed to get clear model for CM fee level in public construction project. For the practical use and main target, CM for fee contract only is assessed and analysed. Cost estimate by percentage of total contract sum and method based on the historical construction data have significant deficiency. An regression model and probabilistic model are suggested with 9 independent variables. In the case of limited work scope, an element based floor area model is suggested and concluded with fish-bone scheme.

The Analysis of the present condition of the Korean CM Market (Comparing the American CM Market)

  • Byung-Sik Yoon;Jung-Ho Yoo;Chang-Duk Kim
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.1534-1539
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    • 2009
  • During the last ten years, there have been many studies related with settlement and reinvigoration of CM. These researches have shown that the application of CM has been not reinvigorated in Korean construction industry yet, because of some problems such as the insufficient application of the public sector, the policy matters and the CM fee estimates. But the present condition data of the Korean CM Market shown in these studies was insufficient for the standpoint of Market itself. Also, some of these studies compared the Korean CM Market with The America CM Market, to study the foreign CM markets. However, because the Korea CM Market only has the CM for Fee Market but the American CM Market has the CM for Fee and the CM at Risk, the Korea CM Market must be not only compared with the America CM Market but also compared with the America CM for Fee Market. Therefore, the purpose of this study is to determine the present condition of the Korea CM Market through the compare and contrast of the Korean CM Market, American CM Market and American CM for Fee Market, by the Market Growth rate and Market Share. This study further aims to verify whether Korean CM market was implemented.

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A Benchmarking Study on CM Fee Estimation (해외사례 벤치마킹에 기반한 국내 CM 대가체계 개선 시사점 도출)

  • Kim, Sang-Bum;Lee, Jeong-Dae;Kim, Jae-Wook
    • Korean Journal of Construction Engineering and Management
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    • v.9 no.1
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    • pp.96-106
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    • 2008
  • The Korean Construction Industry significantly contributed to the Korean economic development not only by preparing the domestic infrastructure but also by successfully conducting various international projects. However, major incidents such as the collapse of Sung-Su Bridge and Sam-Pung Department Store along with stagnation of Korean Economy have raised questions about underlying systematic problems of the Korean Construction Industry. As a solution to resurrect the Korean Construction Industry, the Construction Management (CM) system introduced in late 1990's and increasingly utilized as an innovative delivery system. Despite of the fast growth of CM, the performance of CM has not been up to the hype and low CM fee has been identified as one of the main reasons of unsatisfactory CM performance. Therefore, this research attempted to propose ways of improving 'CM Fee Guidelines' published by Korean Ministry of Construction and Transportation by conducting a benchmarking study on Global Standards of estimating CM Fee. International organizations benchmarked in this research include CMAA, ASCE, DOL, DOE, etc. Various investigation and analysis revealed that Korean 'CM Fee Guidelines' need to significantly modified comparing to Global Standards. This research also tried to prepare recommendations to improve the CM deliver system focusing on the 'Method of CM Fee Estimation' and Selection of a CM firm as an owner's agent.

A Study on the Application of Construction Management Delivery System by Characteristics of Facility (건설사업관리 발주방식의 시설물 특성에 따른 적용방안에 관한 연구)

  • Gee, Hyoung-Kwon;Kang, Hyun-Wook;No, Jae-Deuk;Kim, Yong-Su
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2008.11a
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    • pp.449-454
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    • 2008
  • The purpose of this study is to analyze, applications of the construction management delivery systems according to characteristics of facilities. The adapted research method is to selected four mall in the capital region and then divided them into two groups: CM for Fee or CM at Risk. After analyze each applications and administrations, it could propose proper applications of CM for fee according to CM at Risk. The results of this study are as follows: 1) the CM for Fee was suitable for the projects focused on completing on time and constructing the effective business plan of quality control, and 2) the CM at Risk was suitable for the projects concentrated on the cost reduction through shorten the construction time and the related businesses on quality control.

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Suggestions for Sustainable Construction Project Management (지속가능한 건설사업관리를 위한 발전방안)

  • Lee, Seung-Hoon
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2021.11a
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    • pp.240-241
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    • 2021
  • For the sustainable development of the domestic construction project management field, each CM company should try to diversify in terms of service contract types and scope of work while having internationally competitive technical and service capabilities as follows. First, from the initiation of the service to the completion, the CMr should be able to establish and execute a plan to create specific outcomes. Second, CMr must have the capability to produce weekly or monthly cost, schedule, risk, and scope management reports. In addition, it should be possible to apply the cost plus sliding fee method or to systematically and continuously accumulate and process data generated during the construction process.

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CM Market Revitalization Strategies in Domestic Public Construction Projects based on Questionaries and Delphi Techniques (델파이기법을 이용한 국내 공공공사 용역형 CM 시장의 활성화 전략)

  • Oh, Se-Wook;Han, Seung-Woo
    • Korean Journal of Construction Engineering and Management
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    • v.13 no.3
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    • pp.131-142
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    • 2012
  • Since CM for Fee has been introduced in domestic market of construction industry, Construction Management(CM) has been familiar with one of the established delivery systems in Korea. However, CM(CM for Fee) construction market has been stagnant consistently due to recent economic recessions. The fundamental causes of the current depression of CM construction market are highly related to the social/environmental factors(such as owner's negative perception about CM services, exclusive formation of the CM markets, unfeasible fee and limitations on technology developments in CM services) and the shortage of institutions associated with CM. Accordingly, fundamental improvements on the CM environment are required. This study suggests the feasible methods for improvement on CM system based on fundamental analysis of problems related to the environmental factors by conducting a delphi technique with professional personnels on various positions in CM markets.

A Study on the Estimating Strategy for the Design Phase VE Consulting Fee (설계VE 용역대가 산정방안에 관한 연구)

  • Kim Chul-Woong;Jung Young Il;Kim Yang-Taek;Hyun Chang-Taek
    • Korean Journal of Construction Engineering and Management
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    • v.3 no.1 s.9
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    • pp.97-106
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    • 2002
  • at the design phase and the effective design phase VE application, it is not sufficient to implement VE study at the design phase in the domestic construction industry. The method for estimating design phase VE consulting Fee regulated in current guideline and the insufficient incentive system according to the result of design phase VE application are major problems among the problems related to the roadblock of the active implementation Design phase VE. In this paper, firstly the current methods for estimating Engineering business consulting fee analogous to design phase VE and the domestic and foreign design VE consulting fee were examined, and detailed problems related to the method for estimating design VE consulting fee were indicated, and the Improvement direction were established. Secondly, the estimating strategy for the design phase VE consulting fee and the payment strategy of incentive according to the result of savings were proposed. Finally, the strategies were verified by interview with the experts.