• Title/Summary/Keyword: Design-Bid-Build

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The Investigation and Performance Assessment of the Design-Build Projects in Korea (국내 턴키/대안공사 실태조사를 통한 턴키/대안 입찰제도의 성과 분석)

  • Kim Sun-Hee;Kim Du Yeon;Park Sang Hyuk;Yeom Sang Min;Chae Myung Jin;Han Seung Heon
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2004.11a
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    • pp.462-467
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    • 2004
  • Design-build, which is defined as single source responsibility for design and construction, has been widely used in large public works since governmental formulation of measure for encouraging use of design-build in 1996. However, civic groups and small and medium sized enterprises are highlighting over-competition and unbalanced market shares of conglomerate in domestic design-bid market and insisting on decrease in the use of design-build and absorption into the lowest-price bidding. This study collected information about cost, schedule, quality, new technology adoption from 51 civil design-build projects and measured their performance.

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Case Study in Current State of Amount of Order for Turnkey Project (설계 $\cdot$ 시공일괄입찰제도의 수주현황 사례분석)

  • Lee Yang-Kyoo;Kang Leen-Seok
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2004.11a
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    • pp.197-202
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    • 2004
  • Turnkey contract system is an effective ordering system for the organizations that technical engineers are insufficient in their construction projects. It is possible to reduce project duration and to improve project Quality in an integrated contract system between design and construction. However, owners can have a difficulty caused from unitary responsibility system. This study analyzes present situation and problems of turnkey contract system in our country. The results includes various methods for improving the system based on the analysis of bid price nd selection procedure.

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Analysis of the Influence of Design Score and Price Score for Design Build Bidding (설계시공일괄입찰에서 설계점수와 가격점수의 영향력 분석)

  • Lee, Jinhak;Woo, Sungkwon;Lee, Siwook
    • Korean Journal of Construction Engineering and Management
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    • v.24 no.5
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    • pp.44-51
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    • 2023
  • Selecting appropriate bidding system in construction projects considering the characteristic of project can be a make-or-break element, so the understanding for bidding system of public construction projects is ever more important from the perspective of both the owner and the contractor. The design-build bidding is commonly referred to as turnkey in Korea, and is a bidding method that is often applied to large public construction projects because it allows new technologies to be applied to the design and facilitates risk management for the owner. In this bidding method, there are only two factors (design score and price score) that affect the selection of the winning bidder, so it is important to understand the influence of each factor, but there is little research on the subject. This study aims to provide a basis for establishing bidding strategies for understanding the influence between design score and price score by analyzing various design-build bidding data of public construction projects. The results of the study show that design score is the factor that has more influence on the ranking of bidders in all three weighted evaluation methods: design-emphasized, price-emphasized, and equalized evaluation. In addition, we found that the correlation between design and price scores was not significant due to the unique bid evaluation structure in Korea.

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.

Probabilistic GMP Calculation Method based on BIM (BIM기반 확률론적 GMP 산정방안에 관한 연구)

  • Go, Gun-Ho;Jin, Zheng-Xun;Kim, Hyun-Joo;Hyun, Chang-Taek
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2018.05a
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    • pp.122-123
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    • 2018
  • Recently, CM at Risk delivery system(CM@R) that could solve the problems of Design Bid Build delivery(DBB) system has been emerging. In the CM@R delivery system, the contractor negotiates for a maximum guaranteed price(GMP) with the client at the design stage, and the contractor carries out the construction within the GMP. In CM @ R, the construction company with expertise in construction participates from the design stage to reflects the construction know-how in the design. On the other hand, the modification design frequently occurs due to the change of the construction cost when negotiating the GMP. In addition, uncertainties are inherent in the GMP calculation because the calculation is based on unfinished drawings and documents. This study proposes a probabilistic GMP estimation method applying MCS to the BIM - based cost prediction model, in order to extract the accurate quantity information when estimating the GMP and to cope with the change of the construction cost inherent in uncertainty.

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A STUDY ON CONSTRUCTION CONTRACTS AND PAYMENT METHODS IN CM AT RISK SYSTEM -APPROACH WITH ESTABLISHING CONTEXT OF GMP-CM SYSTEM -

  • JeaSauk Lee;JaeYoul Chun
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.1002-1006
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    • 2005
  • When we compare CM system with Design Bid Build system, we can see two striking features in CM system. First, CMr participates in construction team along with Owner, Designer and Constructor. The newcomer can change boundaries of function and responsibility. Second, Compatibility through each phase and Objectivity of decision-making become more important, because relation among stakeholders changes from a rectilinear to a network. However, it is not clear how the risk of completion is reasonably treated. So we have to think about the relations between Owner and CMr, CMr and Specialist Contractor from a point of trade risk. This paper covers them.

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Steel Plant Construction (EPC) Project Case Study : Forensic Lessons-learned Analysis and Systems Engineering Improvement Recommendation

  • Kyung-Bae Jin;Young-Ho Kim;Eul-Bum Lee;Suk-Hwan Seo
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.145-150
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    • 2013
  • As a recent global trend, the majority of mega-size plant projects are delivered through EPC (Engineering, Procurement and Construction) contracts, where a single contract is awarded for engineering, procurement, and construction. Under this contracting mechanism, it is challenging for contractors to carry out the projects under traditional project management processes used in design-bid-build projects. A new EPC Plant, the POSCO Special Steel Plant in Changwon, was built successfully at the beginning of 2012 and it is currently in full-scale production. The project has encountered a number of major difficulties however, with some technical and managerial issues through its development process. As summarized in this paper, the authors (as project participants with the contractor) investigated it as a post construction analysis and recorded the Lessons-learned for future project management improvement.

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A Project Delivery System Selection Model for Large Public Construction Projects (대형 공공공사의 적정 발주방식 선정모델)

  • Hyun Chang-Taek;Seo Yong-Chil;Lee In-Keun;Ryu Kil-Sang;Lee Seong-Seok
    • Korean Journal of Construction Engineering and Management
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    • v.1 no.2 s.2
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    • pp.71-80
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    • 2000
  • Project delivery systems determine the relationship, responsibility, authority and the scope of works of those involved in project, hence, optimum project delivery system should be selected to so that construction project would be executed successfully, Until now, the traditional design-bid-build mainly has been used for public projects, but the government is making efforts actively to introduce other methods such as design-build, alternative bidding by its policy. However, delivery systems should be determined through considering physical projects characteristics, owner's goals, external factors, etc, rather than government' policy. Therefore, the purpose of this research is to propose objective delivery system selection criteria and delivery system selection model, which help owners to select the suitable delivery system through quantitative and reasonable manner.

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Project Delivery Systems and Project Performance;An Evaluation Model for Public Construction Projects (공공건설사업의 발주방식 선정 및 성과평가 모델)

  • Yu, Il-Han;Kim, Kyung-Rai
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.41-47
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    • 2007
  • The selection of the reasonable project delivery system (PDS) is crucial for a successful performance of a project, which means to achieve project objectives. Furthermore, the project performance has been tightly related to the selection of PDS appropriate to pertinent project characteristics. In this context, the ministry of finance and economy of Korea launched two new project delivery systems called "Best Value Contract (Design-Bid-Build)" and "Bridging Contract (Design-Build)" in October of 2007 by revising enforcement ordinances of "Act on Contracts to Which the State is a Party". For efficient operation of the new project delivery systems, this paper suggested a PDS selection model which supports decision making of the reasonable PDS for a pertinent project by assessing characteristics of the public construction projects, both quantitatively and qualitatively. In addition, a PDS performance evaluation model was proposed in order to get feedback on the result of the PDS selection and the operation for the succeeding project. The standard models suggested in this paper might be used as a tool to support the decision making of the public organizations.

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COMPENSATION STRUCTURE AND CONTINGENCY ALLOCATION IN INTEGRATED PROJECT DELIVERY SYSTEMS

  • Mei Liu;F. H. (Bud) Griffis;Andrew Bates
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.338-343
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    • 2013
  • Integrated Project Delivery (IPD) as a delivery method fully capitalizes on an integrated project team that takes advantage of the knowledge of all team members to maximize project outcomes. IPD is currently the highest form of collaboration available because all three core project stakeholders, owner, designer and contractor, are aligned to the same purpose. Compared with traditional project delivery approaches such as Design-Bid-Build (DBB), Design-Build (DB), and CM at-Risk, IPD is distinguished in that it eliminates the adversarial nature of the business by encouraging transparency, open communication, honesty and collaboration among all project stakeholders. The team appropriately shares the project risk and reward. Sharing reward is easy, while it is hard to fairly share a failure. So the compensation structure and the contingency in IPD are very different from those in traditional delivery methods and they are expected to encourage motivation, inspiration and creativity of all project stakeholders to achieve project success. This paper investigates the compensation structure in IPD and provides a method to determine the proper level of contingency allocation to reduce the risk of cost overrun. It also proposes a method in which contingency could be used as a functional monetary incentive when established to produce the desired level of collaboration in IPD. Based on the compensation structure scenario discovered, a probabilistic contingency calculation model was created by evaluating the random nature of changes and various risk drivers. The model can be used by the IPD team to forecast the probability of the cost overrun and equip the IPD team with confidence to really enjoy the benefits of collaborative team work.

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