• International conference on construction engineering and project management
• /
• 2005.10a
• /
• pp.1112-1117
• /
• 2005

Construction cost index is generally used to estimate the new project cost based on past construction data and to adjust contract cost when the price change of various articles and items of expenditure composing the contract occurs. In Korea, it is mostly used for adjustment of construction contract cost due to fluctuation of prices. However index adjustment rate which is used for adjustment of construction contract cost had some problems in calculating cost index of each expenditure item that could not reflect properly the change of construction cost. For supplementing these problems, the research of developing construction cost index has been executed. Through the precedent research, these problems were partially resolved but still remain. Therefore this research proposes method of making cost index that utilizes representative items of labor, material, and equipment by analyzing bill of quantity of road construction, through analysis and comparison of precedent study. By using this method, it is expected to solve problems which were not reflected in precedent studies.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• 2006.11a
• /
• pp.289-294
• /
• 2006

Residential buildings industry hold lots of portions in Korean construction. Accurate cost index for Residential buildings is required to understand trends of prices of the constructions and to manage budget for them effectively. So Korea Institute of Construction Technology has issued a cost index for residential buildings every six months. However It hasn't been improved although It can't reflect the actual circumstance. So we are supposed to make a new cost index for residential buildings based on statistical data extracted from bills of quantity at three different projects.

• International conference on construction engineering and project management
• /
• 2005.10a
• /
• pp.908-912
• /
• 2005

Construction Cost Indices are values for measuring fluctuations in direct construction costs which include material costs, labor costs, and equipment costs for construction operations. In Korea, Korea Institute of Construction Technology (KICT) has been assessing and announcing these indices since January, 2004. The main goals of this paper are to look over the calculation process for those indices and then present the trend in construction costs according to the types of facilities with the past construction cost index data. Also, this paper traces the origin of the occurrence of significant changes on those indices through the further analysis of the trend. In addition, this paper shows the practicality of the indices and the way how to put them to practical use. An alternative estimate method using the indices is suggested for compensating the changes of construction costs caused by price fluctuations.

• Journal of the Korea Institute of Building Construction
• /
• v.12 no.1
• /
• pp.108-114
• /
• 2012

Escalation method examining the changes in price index has been widely utilized in public construction projects. The previous escalation method determined estimated changes in price based on the average unit price of contract items over a period of time. In relation to this method, the issue has been raised that the fluctuation rates of previous method show different trends compared with other related price indices, as the influence of the small group of contract items with large unit prices overwhelms the others. This research suggested an improved escalation method which estimates the fluctuation rate by examining the changes in CCI (construction cost index) and applies it to the total amount or the partial amount deducted for labor cost in price escalation for previous bid price method. To verify the improvement, a case study is conducted on an educational facility, and the fluctuation rate was estimated in two different base periods (short term, long term). The results over the long term showed similar tendencies to those of related price indices, as well as significant differences in fluctuation rates compared to those of the previous method.

• Korean Journal of Construction Engineering and Management
• /
• v.16 no.2
• /
• pp.46-53
• /
• 2015

Electrical construction cost index is composed of the cost of albor and material. The producer price index is used to the cost of material. The Bank of Korea restructured the formation method and the basic period of the producer price index in 2013. Because fixed-weighted method can't faithfully reflect industrial structure changes. The weighted value and price index of fixed-weighted method is fixed on the basicp eriod. Electrical construction cost index is changed from fixed-weighted method to chain-weighted method in september 2014, because of these on the need. But the change of organization in formation method changes the weighted value. So there is the need of analysis about the statistical continuity of electrical construction cost index. This study is focused on the time series analysis between fixed-weighted and chain-weighted electrical construction cost index. We uses unit root test, cointegration test, regression analysis of long and short term equation, fitness for the estimation of static forecast as time series analysis. We verify that chain-weighted electrical construction cost index can be replaced to fixed-weighted construction cost index accounting analyses result. So users of it recognize that chain-weighted electrical construction cost index has statistical continuity.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2012.11a
• /
• pp.149-151
• /
• 2012

Changes in the price of materials in construction projects is one of the important variables. Therefore, measures are necessary to respond to the demand and supply of materials and price instability. In previous studies, mainly of ready-mix concrete and steel beam analysis was carried out. However, a study of non-ferrous material prices are still insufficient. So, in this study, the researcher identified the causal relationship between the construction cost and non-ferrous materials prices. Construction Cost Index was selected as a proxy variable of construction cost.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2012.05a
• /
• pp.319-320
• /
• 2012

International oil prices is the world's leading macroeconomic indicators. Rising international oil price has been worsening. profitability of construction company including material cost as well stagnation in housing market. Thus, according to fluctuations in international oil prices has cost index need to see any change happening there. in this study, 2000 to 2011 interest rates, exchange rates and oil price fluctuations in construction cost is to compare the impact.

• The Journal of Asian Finance, Economics and Business
• /
• v.5 no.2
• /
• pp.43-51
• /
• 2018

We study the impact of economic policy uncertainty (EPU) of Asian four countries such as Korea, Japan, Hong Kong, and China on housing market returns in Korea. Also, we document the relationship between the EPU index of those four countries and the housing market including macroeconomic indicators in Korea. The EPU index of those four countries has significantly a negative effect on the housing purchase price index, housing lease price index in Korea. The EPU index in Korea and Japan has significantly a negative effect on the CPI. The EPU index in only Japan has significantly a negative effect on the PPI. The EPU index in Hong Kong and Korea has significantly a negative effect but the EPU index in China significantly has a positive effect on the stock price index in construction industry. The EPU index in only Korea has significantly a negative effect the stock price index in banking industry. This study shows the EPU index of the Korea has the negative relationships on the housing market economy rather than other countries by VECM. And this study has an important evidence of the spillover of several macroeconomic indicators in Korea for the EPU index of the Asian four countries.

• Land and Housing Review
• /
• v.14 no.4
• /
• pp.39-46
• /
• 2023

This study explores the interrelationship between 'KRX Construction' and 'Business Survey Index'. KRX Construction is a leading economic indicator of construction industry, implying the potential interdependence with BSI Construction. Previous papers have investigated the relationship between the released stock price index and BSI. Using Granger causality tests, this study investigates how the BSI Construction is associated with the trend and noise-trading components of KRX Construction, respectively. The decomposition of KRX Construction of trend and noise-trading is based on the state-space model. The results document unilateral Granger causalities from released KRX Construction, trend component, noise-trading component to BSI Construction. In sum, this study demonstrates that construction company CEOs view stock price index as a leading economic indicator.

• Korean Journal of Construction Engineering and Management
• /
• v.16 no.4
• /
• pp.21-29
• /
• 2015

Construction cost index (CCI) has been published for last 10 years, it's contributed to update the historical cost data, analysis cost fluctuation and evaluate the market price for construction works with direct or indirect manner. CCI is a secondary or processed statistics using the basic statistics of input output table (IO table) and producer price index (PPI) from the Bank of Korea (BOK). So once the basic statistics change, it is required to modify the calculating model of CCI. Recently the BOK changed some fundamental principles and the base year (from 2005 to 2010), that can be used in IO table and PPI. This research analyzed the recent revision of basic statistics and their impacts on CCI, and improved the previous CCI model in response to it. Also the validity of new CCI was verified by analyzing the items and weights utilized in CCI and comparing the related index.