• Korean Journal of Construction Engineering and Management
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• v.17 no.5
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• pp.13-21
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• 2016

Insolvency of construction companies that play the role of main contractors can lead to clients' losses due to non-fulfillment of construction contracts, and it can have negative effects on the financial soundness of construction companies and suppliers. The construction industry has the cash flow financial characteristic of receiving a project and getting payment based on the progress of the construction. As such, insolvency during project progress can lead to financial losses, which is why the prediction of construction companies is so important. The prediction of insolvency of Korean construction companies are often made through the KMV model from the KMV (Kealhofer McQuown and Vasicek) Company developed in the U.S. during the early 90s, but this model is insufficient in predicting construction companies because it was developed based on credit risk assessment of general companies and banks. In addition, the predictive performance of KMV value's insolvency probability is continuously being questioned due to lack of number of analyzed companies and data. Therefore, in order to resolve such issues, the Bayesian Probabilistic Approach is to be combined with the existing insolvency predictive probability model. This is because if the Prior Probability of Bayesian statistics can be appropriately predicted, reliable Posterior Probability can be predicted through ensured conditionality on the evidence despite the lack of data. Thus, this study is to measure the Expected Default Frequency (EDF) by utilizing the Bayesian Probabilistic Approach with the existing insolvency predictive probability model and predict the accuracy by comparing the result with the EDF of the existing model.

• Korean Journal of Construction Engineering and Management
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• v.18 no.3
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• pp.105-116
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• 2017

In recent years, large Korean construction companies have suffered serious losses in their overseas business. Many practitioners and researchers have analyzed causes of cost overrun in these projects. However, these arguments have not been empirically verified based on acutal project cases. This study investigated cost overrun rate, contingency, allowance, predicted risk before bidding, and actual and residual risk after award in the 67 international infrastructure projects conducted by 13 large construction companies. The causes of cost overruns are derived as follows. First, they identified the possibility of cost overrun to some extent before the bidding, but did not reflect the enough risk money to bid price. In particular, this behavior was more severe in badly cost-overrun projects. Second, the causes of cost overrun were more influenced by external environmental risk than internal capability risk. However, the internal risk in badly cost-overrun projects was relatively high compared to cost-underrun projects. Third, badly cost-overrun projects failed to mitigate risk. However, cost underrun projects were affected more by low exterior risk conditions than by well mitigated risk. This study provides more informed knowledge in controlling project costs in international infrastructure projects.

• The Journal of the Convergence on Culture Technology
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• v.6 no.1
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• pp.135-145
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• 2020

This research is mainly aimed at finding out about the effects of the safety and health management system on corporate performance through systematic operation by efficiently allocating material and human resources within the company by participating all employees and stakeholders in order to prevent and maintain industrial accidents and the optimal working environment, and how to maintain and activate the safety and health management system at the center of electric contractors.The analysis results are as follows. First, management, organizational management and resource preparation will have a positive impact on the management capability of the electric power corporation. It was assessed that the more well-transmitted and understood within the organization, the better the construction plan, the better the equipment management status, the more positively the management capability of electric works was to be achieved. Second, management, organizational management and resource preparation will have a positive impact on corporate management performance.This seems to have a positive effect on a company's business performance when the standards of OHSAS are met with construction plan and construction equipment management are high as related information such as industrial safety and health laws are strengthened and companies' safety and health activities, advanced safety and culture are released to facilitate organizational management.Third, the management ability of the electric power corporation will have a mediated effect on the effect of management, organization management and resource preparation on the performance of the enterprise. This means that the direct effect of the independent variable management organization on corporate management performance is .401 The indirect effect is .168.658 shows that the direct effect of resource preparation on corporate management performance is .423, the indirect effect is .178 and the total effect.It was analyzed at 643.

• Journal of the Computational Structural Engineering Institute of Korea
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• v.27 no.4
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• pp.289-296
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• 2014

The rebar detailing is an important work influencing the final performance and quality of RC structures. But it is one of the most irrational and illogical activity in construction site. Many groups of workers, including main contractors, structural engineers, shop drawers, rebar fabricators, and etc., participate in this activity. A loosely-organized process for this activity is apt to produce a big amount of rebar loss or even degraded structures. A 3-dimensional rebar auto-placing system, called as Rebar Hub, has been designed and implemented in this research. Rebar Hub provides a totally integrated service from 3D structural modeling of buildings to rebar auto-placing considering anchorage, splice, and the length of ordered rebar. In addition, Rebar Hub can recognize the 2D drawing CAD files and then build 3D structural models which are used for the start point of 3D rebar auto-placing. After rebar auto-placing, each members of the 3D structural model have rebar information belonging to them. It means that the rebar information can be used for the afterward works such as quantity-survey, manufacturing and fabrication of rebars. Rebar Hub is showing outstanding performance while applying to practical projects. It has almost five times productivity and reduces the rebar loss up to 3~8% of the initially-surveyed amount of rebar.

• Korean Journal of Construction Engineering and Management
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• v.10 no.6
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• pp.146-153
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• 2009

The year 2008 was a hard year for Korea's construction companies. The real estate downturn resulted in halting new construction and stopping existing work, and inflation of global oil prices caused price hikes in rebar and concrete materials. As a solution to reducing the budget, the newly appointed government announced plans to increase low cost bid contracts from 10 billion to 30 billion won. When such economical and political factors negatively impact the construction market, projects based on low cost contracts are the hardest hit. Many problems already inherent in low cost bid contracts become accentuated. Consequently, this provides an opportune time to actually study and analyze the issues in these projects. This paper introduces the findings made from investigating four projects struggling to make ends meet in the year 2008. Results show that flow of cash (i.e., liquidity), or lack thereof, was the root cause which in turn was hampered by failed mechanisms for design changes, material inflation. Attributing cash flow risk to the bottom of the production structure (i.e., small business subcontractors) was also a problem within the industry. Contractors need a better way to prepare against material price fluctuations, and owners need to assist in expediting payment during times of extreme downturn.

• Korean Journal of Construction Engineering and Management
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• v.15 no.3
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• pp.12-22
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• 2014

In recent, many Korean contractors have tried to extend their business area into the overseas construction market, mainly as a result of a reduction in their domestic construction market. However in terms of risk, overseas construction projects are likely to face a number of unpredictable problems, many of which occur as a result of differences in contract cultures and construction environments between Korea and other countries. One key issue facing overseas construction projects in particular, is that of sub-contracting and control, and the way in which many countries of Commonwealth of Nations operate a unique subcontracting method well known as a nominated sub-contractor(NSC). This paper introduces the NSC system and differences as comparing among standard construction contract forms, such as JCT, SIA, HKIA and PAM. in UK and Asian Commonwealth of Nations. Also, we attempt to classify the type of the NSC system through the consideration of NSC clauses in accordance with the objection and termination of NSC contracting respectively.

• Korean Journal of Construction Engineering and Management
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• v.15 no.4
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• pp.107-118
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• 2014

Electrical Construction industry uses Construction industry's statistical data for business outlook. Because there are not electrical construction business view's statistical data. It has own unique characteristic which is different from construction industry. So it must have a electrical construction Business Index. This study was focused on developing the business index of electrical construction business. Electrical construction business index consists of electrical construction composite Index(ECI) and the electrical construction business survey index(EBSI). This study experimentally analyzes the business views of electrical construction industry in 2/4 quarter of 2014. The leading Index of ECI indicates -0.4% compared with 1/4 quarter of 2014, coincidence index also shows that electrical construction industry's business cycle is in an economic downturn. EBSI is 83.5 in 2/4 quarter of 2014, down from 95.2 in 1/4 quarter of 2014. It means that electrical construction company has a pessimistic prediction. As a result we know that the Business Index of Electrical Construction Business shows similar results. It is expected to make contribution for electrical contractors to establish management strategies and prepare responses to economic changes by providing information about economic trends of electrical construction business and forecasting future economy.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.971-976
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• 2007

In the U.S., utility damages or utility delay caused by conflicts during the underground utility relocation is one of the weighty problem in the construction industry. Also, in domestic case, delay and additional cost caused by underground utility(i.e, electricity, communication, gas, water supply and sewerage) relocation has been happened so that there is an increase of claims for responsibility between owners and contractors. However, there is insufficient survey for the recent circumstance of additional cost for delay and design changes caused by utility relocation and shortage of enough research for solving and analyzing of causes and their ripple effect. This research presents a result of the study about the best practices of FHWA(Federal Highway Administration), SHAs(State Highway Agencies) and the utility companies managing utility relocation. Also, it presents the basic concept of SUE(Subsurface Utility Engineering), the most reliable tool of FHWA presented, and investigates the developing status about SUE in Korea. At the end of this paper, this research proposes a practical and more applicable study about the efficient utility relocation focusing on local industry.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.519-522
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• 2007

China infrastructure construction market has huge potential for increased use of PPP/BOT mode and one of the most attractive markets of doing business. However, there are still a multitude of challenges for overseas EPC contractor to enter into the China PPP/BOT market both internally and externally. Especially, the construction legal system and relevant policies are considered at present the biggest barriers in accessing China construction market. Therefore, the main purpose of the paper is to identify the impact of the construction laws, regulations and BOT-related policies on the viability of foreign contractor-led BOT project in China. To the satisfaction of the purpose, this paper will first analyze China construction laws based on the key issues that must be tackled by foreign EPC contractor before they enter into China. This summary gives the possible contract scheme for a BOT project of interest in which foreign contractors could define the scope of works and measure the viability of the project. Finally, a case study of wastewater treatment plant BOT project in China subsequently illustrates some of the lessons learned from the foreign contractor's perspectives for successfully participating in future environmental market in China.

• Korean Journal of Construction Engineering and Management
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• v.19 no.4
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• pp.12-20
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• 2018

As facilities have become larger, more complex, and advanced, the importance of the facility management in the operation phase of the building is increasing. As a result, the scope of the facility management function is expanding, and the requirements of information are ever-increasing. However, inefficient exchange of information occurs due to duplicated tasks and lack of collaboration among the construction life cycle phases, resulting in cost loss. These low interoperability issues can be complemented by construction information management from a life cycle perspective. Efficient construction information management at each life-cycle stage is derived from the owner's will and is materialized through the construction information handover requirements by the owner. The purpose of this study is to develop an evaluation method of construction information handover requirements for facility management. In order to develop the method, facility management types and business functions are also classified and defined in this paper. Using the methodology proposed by this study, a case-study of evaluating the 'takeover items' submitted by contractors was performed for the purpose of research validation. The results of the case-study found that the most effective areas are in the order of 'legal informations', 'drawings', 'guides', etc. This study can be used as a reference data for deriving handover requirements for construction information at the early stage of the project.