• International conference on construction engineering and project management
• /
• 2015.10a
• /
• pp.622-624
• /
• 2015

As uncertain factors are latent in a construction project by nature, a change order occurs frequently. The occurrence of change orders in construction projects conducted during construction phase is known to cause unexpected negative impacts such as cost overrun, schedule delay, quality problem, and claims in the post-process. Thus, an efficient management method is necessary to prevent and minimize change orders during construction phase when they occur frequently. This paper analyzed the causes of change orders and the impact factors that occur during the construction phase of a construction project and suggested a direction for change order database building.

• International conference on construction engineering and project management
• /
• 2015.10a
• /
• pp.263-267
• /
• 2015

Stakeholders of a construction project expect cost savings through fast and accurate cost analysis by performing BIM-based quantity take-off (BQT). However, authors have observed that there can be discrepancies in the results of BQT depending on the level of development (LOD) and modeling methods. In addition, since quantity take-off methods are different depending on the construction work items, the combination of LOD, modeling methods of BIM, features of construction work items can cause serious overestimate or underestimate in BQT results. It is necessary to identify what kind of problems can happen and how those problems can be avoided in various construction work items, since the discrepancy of quantity take-off results has great impact on not only cost analysis but also the determination of contract amount and it can cause claims, poor construction quality, cost overruns, and many others later in the construction project. Therefore, this paper focuses the identification of issues and problems of BQT at each construction work item level based on two categorizations of structural works and interior works.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.254-257
• /
• 2003

It is common to experience delays during construction projects. Delays can ca use substantial damages to an owner as well as contractors and is the sources of frequent disputes and claims. Many studies have been carried out to assess the causes of delays in construction projects. They are found to be almost similar, except some prevailed local condition. Most of the common construction delay factors are attributed to design faults, incompetent contractor, lack of team accountability etc. To minimize or eliminate the delay we have to follow the recognized fundamental principles of management such as: cost-time relationship, time priority, accountability, rewards, innovative thinking etc. The root causes of delays found out in this paper are not so much different than other previous study. If the implementing agencies properly followed the, fundamental management principles and some other related corrections as recommended in the paper, much construction delays can be avoided.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.31-36
• /
• 2001

Construction contract have great possibility of dispute between contract parties because of long term performance of contract, various participation of the person concerned, effect according to external environment, etc. It is needed correct comprehension and construction management because good reason of claims depends upon contract document or clauses of the related laws and regulations in cases. The purpose of this study is to suggest desirable Interpretation principle for the harmonious management of the construction work in the cases or arbitration adjudication.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.426-429
• /
• 2003

In the construction process, there are many change orders differing to the initial contracts came from the social needs and environmental changes. Most of them will impact to the construction process so that its effects occur project delays. Time extension and liquidated damage in the construction process come from schedule delay whether it is excusable or not non-excusable by the owner. However, those become the delay claims if the owner and the contractor are not agreed on this situation. One of the most important thing on the delay claims is the calculation of delay. The purpose of this study is to present the method of the time delay calculation by comparison of As-Planned schedule, As-Built schedule including all delay and As-Built schedule absent owner delay.

• Korean Journal of Construction Engineering and Management
• /
• v.8 no.3
• /
• pp.125-133
• /
• 2007

If project time extension were required in the construction projects, either liquidated damages or extension costs should be applied according to causation of the schedule delays. However, in actual cases it is not applied so far according to the contract conditions. The reason why this situation happened Is that function of the present planning and scheduling is not working feasibly. The CPM schedule could not provide a proper solution for apportioning responsibility for the schedule delays. This situation could be considered as breach of contract and will cause potential disputes for schedule delay. Therefore, in this research process based contract administration model for construction delay claim is proposed to prevent schedule delay and solve the claims. The model is based on pro-active management for causation of delay to provide apportionment of responsibility and written evidences.

• Journal of the Korea Institute of Building Construction
• /
• v.3 no.2
• /
• pp.95-102
• /
• 2003

Financial difficulties and claims frequently stop construction works and cause subsequent contract cancellations. However, as the criteria to assess costs have not been established, many cases of legal disputes over the assessment of cancellation costs are taking place and the concerned parties are suffering the loss of time and money. Therefore, the present research aimed at developing a rational and systematic model of cancellation cost assessment following the cancellation of contracts. The research was carried out in the following methods and scopes. 1 ) The research was focused on the assessment of fair cancellation costs from constructors' side for contracts cancelled by any causes for which the owners have liability. 2) To obtain basic materials about cancellation cost assessment methods, contracts, claims, contract cancellations and construction-related laws at home and abroad were examined. 3) A cost assessment model was developed for systematization and efficient operation of cancellation cost assessment, and the reliability and efficiency of the proposed model was verified through a case study. The conclusions drawn from the research are as follows. The importance of the cancellation cost assessment model was confirmed as, using the cancellation cost assessment model, direct cancellation cost and indirect cancellation cost could be assessed systematically, the number of disputable items could be reduced because reasonable evidences of actual spending were presented, and the loss of constructors could be minimized because systematic and rational cost assessment became possible for many disputable cases of indirect cancellation cost, which the constructors had been unable to prove so far though having spent.

• International conference on construction engineering and project management
• /
• 2011.02a
• /
• pp.526-533
• /
• 2011

Contracting is said to be a high-risk business, and a common cause of business failure is related to cash management. A contractor's financial viability depends heavily on how actual payments from an owner deviate from those defined in the contract. The paper presents a method for contractors to evaluate the punctuality and fullness of owner payments based on historical behaviour. It does this by classifying owners according to their late and incomplete payment practices. A payment profile of an owner, in the form of aging claims submitted by the contractor, is used as a basis for the method's development. Regression trees are constructed based on three predictor variables, namely, the average time to payment following a claim, the total amount ending up being paid within a certain period and the level of variability in claim response times. The Tree package in the publicly available R program is used for building the trees. The analysis is particularly useful for contractors at the pre-tendering stage, when contractors predict the likely payment scenario in an upcoming project. Based on the method, the contractor can decide whether to tender or not tender, or adjust its financial preparations accordingly. The paper is a contribution in risk management applied to claim and dispute resolution practice. It is argued that by contractors having a better understanding of owner payment behaviour, fewer disputes and contractor business failures will occur.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• 2007.11a
• /
• pp.60-67
• /
• 2007

Cases of the time extension have continuously transpired in the public construction projects. The potential of economical loss and claims is increased because the concerned parties such as an owner or a contractor have not properly performed their own responsibility for the time extension. Therefore, this paper aimed to improvement of apportioning responsibility for the time extension in construction projects.

• International conference on construction engineering and project management
• /
• 2005.10a
• /
• pp.687-692
• /
• 2005

The Building and Construction Industry Security of Payment Act 1999 (NSW) (the Act) is a unique form of statutory regulation for the building and construction industry, which gives virtually all industry participants a statutory right to, and a means of recovering, payments for work done under a construction contract. The research aim is to examine current trends in adjudication applications and determinations under the Act. The research reveals: (a) that the adjudication process is encouraging parties to resolve disputes as to payment (b) that there is low level of awareness and understanding of the provisions of the Act, particularly amongst subcontractors; (c) that claimants making small claims experience a high rate of success at adjudication; and (d) that the indirect cost of adjudication is becoming problematic.