• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.303-306
• /
• 2003

Although design-build construction projects have recently increased. general conditions of construction contract are not reflecting the characteristic of design-build construction projects neither performing its fundamental roles as implying many claim elements. So. this study aims to propose the basis for improving the general conditions of the domestic design-build construction projects. This study reviews literatures associated with design-build construction contract and analyses domestic general conditions into foreign standard forms of general conditions. Additionally, it is examined the problems of design-build construction contracts and performed questionnaire survey to the practitioner in the construction contract field. In doing so, this study suggests the direction for improving general conditions of domestic design-build construction projects.

• Korean Journal of Construction Engineering and Management
• /
• v.13 no.5
• /
• pp.12-24
• /
• 2012

The Risks in undertaking a construction project comes from many sources and often involves many participants in the project. This study has identified various kinds of risks, assessed the risk factors quantitatively and suggested risk management method for response pertinent in Design Build(Turn Key)type of projects in Korean context. A questionnaire was designed comprising of 145 possible risks in all types of construction projects. The population from owner, consultant and contractor groups was asked to indicate the risks applicable in DB projects. 25 numbers of critical risks in DB projects were identified and further analyzed for reveling inherent relationship between them through factor analysis. Factor analysis revealed 8 risk factors in DB projects. Construction site related, contract related and design related risk factor consisted about 72% of total risk weight. It has been found out about 6%, while considering the mutual dependency, it is about 10% of total cost of DB project. Therefore, It is suggested that 6% to 10% of construction amount as contingency has to be made provision for risk responses in the DB projects.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• 2006.11a
• /
• pp.301-304
• /
• 2006

The insistence of rights and interests in contract is being generalized by opening in construction market which is following F.T.A, internationally. Conditions of contract in construction have different specialities compared with other industries. Different conditions of contract should be established because of a specific character that is different from each construction, such as work, environment, circumference conditions. Although the order of Turn-key is being expanded by increasing construction scale and demanding hybrid function, the suitable regulations of contract are not settled. As a result, various factors of claim is occurring in Change Order-Claim, because they just obey a part of guide-line. This study suggests useful solutions in detail concerned with the main factor of Change Order-Claim by each D/B phases through practical sorting and analysis of the causes of Change Order-Claim.

• Journal of the Korea Institute of Building Construction
• /
• v.10 no.1
• /
• pp.155-162
• /
• 2010

Following the successful entry of Korean builders into overseas construction markets, Korean architects have also become active abroad, and have expanded their market share centered on the Southeast Asia and Middle Eastern areas through Design-Build contracts. However, there have also been However, conflict can arise among the project applicants in the contract stage due to the special characteristics of overseas construction. This sometimes leads to the failure of a project. Using statistics and case studies, this study identified problems in the overseas construction market. It analyzed inefficient factors of the architectural design contract phase in the overseas through a survey and an interview of specialists. Based on the results, this study suggested a master architect system, and some resolutions to the problems of organizing an internal evaluation system. It is expected that the results can be used as practical data for companies that want to advance into the overseas market.

• Korean Journal of Construction Engineering and Management
• /
• v.4 no.3 s.15
• /
• pp.128-136
• /
• 2003

The contractors which execute the design-build project have difficulties in design management and contract administration in the pre-construction phase because they have managed construction projects focused on only construction phase so far. Moreover, they have to manage the design development stage without any contingency following-up various design revisions from the design reviews of outside experts. Therefore, the design management in the design development stage is a critical success facto. of the design-build project. The objective of this study is to structure the problems in the management skill for design development phase in the domestic design-build projects and to suggest a design development management method to settle the problems. To achieve these objectives, this study 1) analyzes the prior studies about the design-build procurement methods, 2) designs and performs a case study to embody the problems of the domestic design-build projects, and 3) proposes a method of design development management by analyzing the results of case study and interviewing experts.

• KSCE Journal of Civil and Environmental Engineering Research
• /
• v.36 no.6
• /
• pp.1153-1160
• /
• 2016

There have been many studies on the subject of risks in the Construction Industry and many useful results have been produced. However, risk studies on the conditions of contract, which is the most critical contract documents, has not been tried despite of its contractual function in the overseas projects. In this study, various contractual risks are identified for proper and reasonable evaluation of the contractual risks possibly encountered in the Tender and/or Contract stages of the Projects. For development of study, FIDIC Red Book 1999 Edition which is world widely recognised as a standard conditions of contract prepared for the projects designed by the Employer. Contractual risks are divided into three levels and applicable clauses are assigned to each appropriate risk factors. And table of major contractual risk factors are made using the classified levels of each factors with evaluation criteria as a result of this study. As this study is made only for the conditions of contract which is prepared for the construction contracts designed by the Employer, further studies for other types of contracts such as Design-Build (FIDIC Yellow Book), EPC/Turnkey (FIDIC Silver Book) and recently developed Design, Build and Operate type of contract (FIDIC Gold Book) are required to cover various types of projects executed in the world construction markets.

• Proceedings of the Korean Institute Of Construction Engineering and Management
• /
• autumn
• /
• pp.294-298
• /
• 2003

Recently, Design-build project as delivery system public construction sector tends to be increased according to the Masterplan for promotion of construction technologies, and construction projects are increasing their complexity, variety and scale. And owner's requirements become various. Preliminary design for design eligibility judging of design-build has been designed excessively to get a good point and this tendency includes the elements which is capable of wasting the budget. Because of excessive design, owners require to apply VE study into the design development phase but in the Design-build system, VE application has not been of no effect that owners expect, owing to the characters of lum-sum contracts. The purpose of this study is to propose the plan for effective application of VE in the design development phase in order to solve the problems such as excessive design of preliminary design in the design-build project. This study established plans for VE application through investigating and analyzing VE application case and then proposed the applications in the aspect of regulations and contracts, parties participated in project, VE operation through research for verification of usefulness.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.25
• /
• pp.3-40
• /
• 2005

Many Korean construction companies have been performing a variety of overseas construction projects since the 1970s. It is unfortunate that in many cases they have had to suffer big losses caused by errors and defects in the design and construction of the projects. In the author's opinion, however, there were losses that could have been avoided if they had understood better the feature and content of the particular construction contract. Few lawyers and scholars in Korea have been interested in the research and study of international construction contracts. This is mainly because they do not have access to practical sources outside of Korea for them to research and study since the contracts undertaken have been dealt with by law firms in other jurisdictions to which the disputes apply. This article is aiming primarily at the introduction of the issues which the practitioners are likely to confront in the process of reviewing and performing the international construction contract. In some cases solutions are sought about these issues based upon the FIDIC standard terms and conditions, the actual experience of practice, and UNIDROIT Principles, etc. It is reasonable to say that all the issues related to the international construction contract cannot be covered in a short article like this. The author wishes this article could induce subsequent studies on international construction contracts for further research. It has to be noted that from time to time Korean construction practices have been compared to the international ones for better understanding. This article mostly includes cases where the Korean construction companies go overseas for their projects, while there are some cases where foreign developers and financial investors participated in domestic projects in which international construction contracts forms were adopted. A few precedent domestic writings about international construction contracts seems to lack emphasis on the points that there are several standard construction contract forms and that they are different. The differences are mainly in accordance with who bears the design responsibility, how the owner has to make progress payments to the contractor and who the funding source for the project is. This article tries to make it clear that there are significant differences between the standard contract forms, e.g. a simple construction form, a design-build form and an EPC/turnkey form of contract. Again, the author hopes that this article can arouse the interest in the international construction contracts from both academic and practical fields, so that many subsequent advanced articles can help our construction industry become much more competitive in the world through awareness of the methods of procurement and administration of the contracts.

• KSCE Journal of Civil and Environmental Engineering Research
• /
• v.33 no.6
• /
• pp.2575-2582
• /
• 2013

In the delivery systems for public construction works, design-build methods such as turn-key and alternative have contributed to improving the quality of structures and developing the construction technology. However, it is pointed out that construction based on a design-build method is likely to waste a budget due to its higher contract price than construction based on a design-bid-build method. Other issues such as contract monopoly, bid rigging and deliberation irregularity in design-build. Since there are not much works have been accomplished to comparatively analyze the actual performance and effect based on delivery methods, discussing and judging the performance and effect of each deliver method with limited information could lead to an error. Thus, this study by extensively investigates the actual project cost data, ranging from contract price to the construction cost of the public construction works and comparatively analyzed the characteristics of each delivery method about cost structure and fluctuation trend. This work is expected to assist stake-holders in properly understanding delivery systems for public construction works and promoting their efficient management.

• Korean Journal of Construction Engineering and Management
• /
• v.10 no.4
• /
• pp.38-49
• /
• 2009

In public project market, design-build projects have been increased because of market trend change which enables technical competition. In this condition, its importance is also getting important. Generally, life cycle of design-build project consists of planning, preliminary design, procurement, contract, detail design, start of construction, construction, end of construction, and evaluation. From contractor's viewpoint, it has problems such as difficulties in project management and information sharing because of frequent change of charged division. To solve these problems, it is desirable to change from function-based management system to process-based management system. The purpose of this study is to develop management process model for design-build project by progress phases. This study analyzed main conflicts and decision making factors of each stage in design-build projects, then systemized management subjects' responsibilities and management points' change. And also this study defined the key information that is the key point by project characteristics and progress phases. Based on this analysis, this study did business process modeling from planning stage to construction design check stage. At last, we proposed the way to manage business process by design-build project progress.