• International conference on construction engineering and project management
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• 2007.03a
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• pp.130-139
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• 2007

This paper presents a study on risk analysis in terms of contractor's costs in construction phase in which Crystal ball (software of Decisioneering, UK) has been utilized as a main tool. To realize it, a questionnaire survey has been carried out to identify the dominant factors that strongly influence contractor costs in Vietnam. Based on results of questionnaire investigation, the survey identified three factors which were duration of each construction task, costs of reinforcing steel, and cement. Then a spreadsheet model was created in order to analyze risks. The study also indicates that the cost of reinforcing steel and cement are the cause of risks for contractors. According to the suggested model, contractors may foresee the probability of completion within the approved budget, and the possibility of earning in accordance with owner's payment conditions.

• Journal of the Korean Professional Engineers Association
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• v.30 no.2
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• pp.52-60
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• 1997

As a matter of fact, the better architecture is very important things to create our generation and culture. Also, construction quality improvement is critical necessary to keep the culture and international competition which must be obtained through the consciousness reform of persons concerned. Therefore, the purpose of this proposal is to provide the basic point for establishing a practical compaign against construction failures. In this year, we have to remember the facts that's faced on market opening in construction market which is agreed in WTO. The contents of subject are as follows : 1 ) Subconscious reform of technician and projector concerned 2) Responsable consciousness of original contractor 3) Workmanship of skilled labor 4) Reasonable budget and bidding included sub-contractor 5) Advanced design and engineering quality 6) Certification of consulting engineer

• Korean Journal of Construction Engineering and Management
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• v.23 no.3
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• pp.13-24
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• 2022

Construction projects are exposed to various types of risks, which tend to increase. The increasing risks call for contractors' more attentions to forecasting and dealing with these risks. One of the measures to deal with contractors' risks is to forecast or estimate risk cost and include it in the construction budget. Although various researches in relation to risk cost have been observed, little attention has been paid to general contractors' perceptions and current practices in estimating risk cost of construction budget. The objective of the study is to identify and discuss key characteristics and implications based on the survey and analysis of general contractors' perceptions and current practices in estimating risk cost of construction budget. The study shows that there is a gap between the perception and the practice of estimating risk cost, that is, high perception of the importance of risk cost and a relatively low level of practice. It suggests that historical cost data, guidelines and corporate-level standard procedures are required to improve the current practice in addition to sufficient time allocations for risk cost estimating. It discusses that there is a need for using sophisticated estimating techniques including bid data analytics despite a low level of the current adoption, and also proposes that research and development in the field of the sophisticated estimating techniques should be further implemented in order to increase their practicality.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.104-108
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• 2015

Delay on State-Funded Construction Projects (SFCPs) in Dong Thap - a province in Mekong Delta of Vietnam, as many provinces of Vietnam, have caused budget overrun through many recent years. The budget-overrun situations, in turn, have deepened the delay. Identifying critical factors affecting delay SFCPs plays a key role to mitigate negative impact of delay. 134/160 questionnaires were collected from personals working for project owners, consultants, supervisors and contractors in Dong Thap Province. Convenient sampling method was used. EFA was resulted in critical 04 factors with 20 variables caused delay in SFCPs, including: "Project technic, contractor's financial capacity and adjustment role of the government", "Regulation and Policy", "Mutual benefit support and concern between the government and residents", and "Disadvantage of construction site and weather season". Reliable measures to reduce delay on SFCPs are discussed to establish legal corridors to strictly controlling the process, consider mutual benefit between the government and its residents, and evaluating construction conditions. Those measures are considered could be applied in not only Dong Thap province, but most provinces of Vietnam as well.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.1283-1287
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• 2009

The Korean government implemented 259 road projects from 2004 to 2007, valued at $18.4 billion. Change orders of these road projects occurred 8,973 times and, subsequently, caused significant increases in the cost of the projects, approximately up to $4.2 billion (22.8% of the initial budget). These significant problems of huge change orders require a more workable control system for budget management whereas the effectiveness of the government's control is still not satisfied. However, previous approaches and studies mostly limited their analyses to simply classifying the causes of the change orders. This paper investigates the real frequency and cost impacts incurred by each cause of a change order, primarily based on 218 road projects in Korea. The paper then identifies the attributes of change orders through a survey of 204 project participants in that those sources were inevitable or avoided if properly managed. The causes of the change orders are further analyzed with analysis of variance (ANOVA) in connection with contract volume, bid award rate, the contractor's capacity to perform, and the design company's capacity. This study found that if the contract volume is smaller, then the possibility of change orders is higher. Interestingly, if the bid award rate is less than 67.5%, it signifies the highest rate of change orders. In addition, the contractors whose construction ability is assessed as the top-ranked group showed the lowest change order rates. With these results, this paper provides the preventive guidelines for reducing the likelihood of change orders.

• Korean Journal of Construction Engineering and Management
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• v.21 no.1
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• pp.32-39
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• 2020

The purpose of this study is to derive the risk factors that occurred during the construction of the temporary aircraft runway and to analyse the risk costs and loss costs. For this purpose, actual construction data made during the construction of the aircraft runway were investigated. And the risk factors that occurred during the construction work were derived. So the increased construction costs and loss costs due to risk factors were analyzed. The results of this study are as follows: 1)The number of risk factors that occurred during the construction of the aircraft runway was derived from eight. 2)It was calculated that the total risk cost of 5.2million won, the risk cost of the owner's should be 243 million won and the cost of the contractor should be 277million won. 3)Owner's was up 2.36% from its planned budget and the contractor lost -277million won out of its planned profit of 443million won, resulting in a residual profit of 165million won. The results of the study are used as a reference for estimating risk factors and contingency that should be considered in aircraft runway construction.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.54-62
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• 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
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• v.9 no.6
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• pp.235-243
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• 2008

Construction projects have unique characteristics that these may be carried out by contractors thus, cost should be estimated before execution. The importance of cost estimation and cost check has become increasingly emphasized in all phases of construction project that would be performed numerously. It is needed that owner have to estimate reasonable budget, and contractor should predict the bid price. However, there are lack of standard cost estimation method before quantity takeoff, cost analysis method, and cost database thus, the method of area cost, such as square foot method, is as used as ever in Korea. Therefore, this research suggested standard cost database structure CUBE, and analysis method of item quantity per one household categorized by area type. Whereafter, database of all item quantity of finish work has been built with 90 building cost data, and validated it's availability. In this respect, the suggested method and the findings from this research are expected to help enhancing the efficiency and productivity of cost estimation in Korea.