• Title/Summary/Keyword: Construction bid document

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Investigation on Uncertainty in Construction Bid Documents

  • Shrestha, Rabin;Lee, JeeHee
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.67-73
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    • 2022
  • Construction bid documents contain various errors or discrepancies giving rise to uncertainties. The errors/discrepancies/ambiguities in the bid document, if not identified and clarified before the bid, may cause dispute and conflict between the contracting parties. Given the fact that bid document is a major resource in estimating construction costs, inaccurate information in bid document can result in over/under estimating. Thus, any questions from bidders related to the errors in the bid document should be clarified by employers before bid submission. This study aims to examine the pre-bid queries, i.e., pre-bid request for information (RFI), from state DoTs of the United States to investigate error types most frequently encountered in bid documents. For the study, around 200 pre-bids RFI were collected from state DoTs and were classified into several error types (e.g., coordination error, errors in drawings). The analysis of the data showed that errors in bill of quantities is the most frequent error in the bid documents followed by errors in drawing. The study findings addressed uncertainty types in construction bid documents that should be checked during a bid process, and, in a broader sense, it will contribute to advancing the construction management body of knowledge by clarifying and classifying bid risk factors at an early stage of construction projects.

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Uncertainty Factors affecting Bid Price from Pre-bid Clarification Document of Transport Construction Projects

  • Jang, YeEun;Kim, HaYoung;Yi, June-Seong;Lee, Bum-Sik
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.238-244
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    • 2022
  • Civil projects are associated with many uncertainties because they involve a long duration, many resources, a large area, and many supply chains. Therefore, the price of a civil project is not simply proportional to the quantity and unit price of the item but has a variable value, including uncertainty risk. This study investigates the influence of the uncertainty factors in the pre-bid clarification document on bid price formation during the project bidding phase. To this end, civil projects from the California Department of Transportation (Caltrans) were used as research data. This study randomly selected fifty sample data from each of twelve counties from 2008-to 2020: six hundred. The authors observed that each project sample had 0 to n query cases due to uncertainty. Then, this study examined the project uncertainty cases and categorized them into the following four uncertainty factors: 'conflict' (UF1), 'impossibility' (UF2), 'lack' (UF3), and 'missing' (UF4). Under the extracting process, the cases are classified into four uncertainty factors. With the project not containing any uncertainty factors as a control group, the project containing these uncertainty factors was designated as an experimental group. After comparing the bidder's price, the experimental group's bid price was higher than the control group's. This result suggests that uncertainty factors in bid documents induce bidders to set a high bid price as a defense against uncertainty.

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A study on the Project Management Plan (PMP) Development Appropriate for Global Construction Environment (글로벌 건설 환경에 적합한 건설사업관리계획서(PMP)에 관한 연구)

  • Yang, Myung-duck;Kim, Chang-kwon;Yang, Jae-woong
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2015.05a
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    • pp.107-108
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    • 2015
  • It's became essential that Korea construction companies should enter into the overseas construction market for their growth and sustainability. In order to comply with the client's required global standard and to compete with in the international market, the shifting the construction project management system to global level is required. In accordance with the demand, this paper proposes the top-level document of construction project management system as a to-be model that utilized in overseas construction projects. The project management plan ("PMP") suggested in this paper is not only the most appropriate one, which complies with the global standard, to be used when companies bid for international construction projects against foreign competitors but also has the process modeling and hierarchical structure.

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A Study of Analyzing Claim Factor and Making Strategies to Prevent Claim in Early Stage for Architectural Turn-key Project - Focusing on Domestic Project - (건축턴키공사 초기 단계에서의 클레임 방지를 위한 클레임요인 분석 및 대응방안에 관한 연구 - 국내공사 사례중심으로 -)

  • Yoon Jun-Seon;Yoo Byoung-Eok
    • Journal of the Korea Institute of Building Construction
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    • v.6 no.1 s.19
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    • pp.93-99
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    • 2006
  • In the inner turn key constructions the problems of uniform types are repeatedly occurred, and, especially, many problems happen up to the stage of pre-construction(from a bid to a contract) owing to the specialties of the turn key constructions. So the claim factors of the Korean turn key constructions were abstracted through the literature searches, the site document examinations, the case studies and the interviews with the experts. When the technicians meeting the interior turn key constructions for the first time and working here now are well acquainted with only these factors, many claims will be prevented. By analysing the degree of claims by claims factors through the questionnaires to the experts about the abstracted factors and surveying the amount of the claims through the case studies, what factors exerted how much of influence on the claims was tested and analyzed. Proposing the response devices to the factors affecting the claims much led the technicians in charge of internal turn key constructions to the prevention and the proper solution of the site claims.

Construction Bid Data Analysis for Overseas Projects Based on Text Mining - Focusing on Overseas Construction Project's Bidder Inquiry (텍스트 마이닝을 통한 해외건설공사 입찰정보 분석 - 해외건설공사의 입찰자 질의(Bidder Inquiry) 정보를 대상으로 -)

  • Lee, JeeHee;Yi, June-Seong;Son, JeongWook
    • Korean Journal of Construction Engineering and Management
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    • v.17 no.5
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    • pp.89-96
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    • 2016
  • Most data generated in construction projects is unstructured text data. Unstructured data analysis is very needed in order for effective analysis on large amounts of text-based documents, such as contracts, specifications, and RFI. This study analysed previously performed project's bid related documents (bidder inquiry) in overseas construction projects; as a results of the analysis frequent words in documents, association rules among the words, and various document topics were derived. This study suggests effective text analysis approach for massive documents with short time using text mining technique, and this approach is expected to extend the unstructured text data analysis in construction industry.

A Reduction of Claims for Efficient Turn-key Project (효율적인 턴키사업 추진을 위한 클레임 저감방안)

  • Oh, Ye-Keun;Sohn, Jeong-Rak;Kim, Jae-Jun
    • Korean Journal of Construction Engineering and Management
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    • v.13 no.3
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    • pp.122-130
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    • 2012
  • Currently, TK(Turn-key) projects have been implemented, the projects on TK basis still have shown several problems rather than its own merits as a bidding method. Increasing the number of claims being occurred during construction process of the projects is reality because of unclear notice of tender documents and conditions of the contract, design review system, and decision process of the qualified bidder. To establish desirable TK projects in domestic market, not only should resonable alternatives for carrying out design review system and selecting the bid winner be set up, but also proper standards for reforming irrational system of contract, bid, and notice of tender related to TK projects. This study is intended to reduce the number of claims and implement efficient projects of apartment construction on TK basis by identifying potential problems through analysis of claim examples of TK projects which have difficulties of revising contract agreement such as drawings and suggesting improvement methods for contract conditions and notice of tender docuements.

A Sduty of Analyzing Claim Factor and Making Strategies to Prevent Claim in Bidding and Contracting Stage for Architectural Turn-Key Project (건축턴키공사 입찰.계약 단계에서의 클레임 예방을 위한 클레임요인 분석 및 대응방안에 관한 연구 - 국내대형건축턴키공사 사례중심으로 -)

  • 윤준선;백준홍
    • Journal of Arbitration Studies
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    • v.13 no.2
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    • pp.353-376
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    • 2004
  • In the inner turn key constructions the problems of uniform types are repeatedly occurred, and, especially, many problems happen up to the stage of pre-construction(from a bid to a contract) owing to the specialties of the turn key constructions. So the claim factors of the Korean turn key constructions were abstracted through the literature searches, the site document examinations, the case studies and the interviews with the experts. When the technicians meeting the interior turn key constructions for the first time and working here now are well acquainted with only these factors, many claims will be prevented. By analysing the degree of claims by claims factors through the questionnaires to the experts about the abstracted factors and surveying the amount of the claims through the case studies, what factors exerted how much of influence on the claims was tested and analyzed. Proposing the response devices to the factors affecting the claims much led the technicians in charge of internal turn key constructions to the prevention and the proper solution of the site claims.

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Development of Checklist to Prevent Claim through Dispute Case Analysis of Public Construction Projects (공공공사의 분쟁사례 분석을 통한 클레임예방 체크리스트 개발)

  • Shin, Chang-Joon;Kim, Yoon-Kyum;Cho, Kyu-Man;Hyun, Chang-Taek;Hong, Tae-Hoon
    • Korean Journal of Construction Engineering and Management
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    • v.12 no.1
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    • pp.13-22
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    • 2011
  • Many studies on cause and prevention of claim have been carried out but they were mostly intended to come up with the improvement measures, improvement system or the measures to deal with the claim, which consequently lacked the substantial ways to identify the details of claim for prevention purpose. That is, there's in fact no tool, in preparation for potential claims, to identify and review the major potential causes at design stage to mitigate the claim and thus, it's necessary to develop the tool such as checklist needed to prepare the claim-supporting documents, check the relevant laws as well as to identify the cause of claim. Hence the study, given the fact that cause of claim is mostly generated at the design stage though the claim itself tends to occur at the construction stage, was aimed at developing the checklist based on contract document such as design documents at design stage for public construction projects in a bid to prevent the potential claim occurred at the design stage.

Research on ITB Contract Terms Classification Model for Risk Management in EPC Projects: Deep Learning-Based PLM Ensemble Techniques (EPC 프로젝트의 위험 관리를 위한 ITB 문서 조항 분류 모델 연구: 딥러닝 기반 PLM 앙상블 기법 활용)

  • Hyunsang Lee;Wonseok Lee;Bogeun Jo;Heejun Lee;Sangjin Oh;Sangwoo You;Maru Nam;Hyunsik Lee
    • KIPS Transactions on Software and Data Engineering
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    • v.12 no.11
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    • pp.471-480
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    • 2023
  • The Korean construction order volume in South Korea grew significantly from 91.3 trillion won in public orders in 2013 to a total of 212 trillion won in 2021, particularly in the private sector. As the size of the domestic and overseas markets grew, the scale and complexity of EPC (Engineering, Procurement, Construction) projects increased, and risk management of project management and ITB (Invitation to Bid) documents became a critical issue. The time granted to actual construction companies in the bidding process following the EPC project award is not only limited, but also extremely challenging to review all the risk terms in the ITB document due to manpower and cost issues. Previous research attempted to categorize the risk terms in EPC contract documents and detect them based on AI, but there were limitations to practical use due to problems related to data, such as the limit of labeled data utilization and class imbalance. Therefore, this study aims to develop an AI model that can categorize the contract terms based on the FIDIC Yellow 2017(Federation Internationale Des Ingenieurs-Conseils Contract terms) standard in detail, rather than defining and classifying risk terms like previous research. A multi-text classification function is necessary because the contract terms that need to be reviewed in detail may vary depending on the scale and type of the project. To enhance the performance of the multi-text classification model, we developed the ELECTRA PLM (Pre-trained Language Model) capable of efficiently learning the context of text data from the pre-training stage, and conducted a four-step experiment to validate the performance of the model. As a result, the ensemble version of the self-developed ITB-ELECTRA model and Legal-BERT achieved the best performance with a weighted average F1-Score of 76% in the classification of 57 contract terms.