• Korean Journal of Construction Engineering and Management
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• v.14 no.5
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• pp.84-91
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• 2013

In 2012, Korean overseas construction market has achieved 64.9 billion dollars of contract order and its amount has increased since the mid 2000's. However, importance of qualitative growth based on profitability as well as quantitative growth is also emphasized. This study analyzed overseas plant project's subcontract process management which is closely related to cost management as one of the qualitative growth methods. In order to select major subcontract processes, extensive literature review and focus group interview(FGI) were implemented and then professionals with years of experience in the overseas plant projects were participated in the questionnaire survey. The collected data were analyzed by Benefit-Structure Analysis(BSA) model. The findings of this study include: (1) the seven and six subcontract processes are positioned in the area of importance control factor and in the area of maintenance/control factor, respectively; (2) administration capability attainment is needed for the six subcontract processes in the area of importance control factor and sustainable management system is required for the processes in the maintenance/control factor area. The further research will identify key subcontract processes to be managed for overseas plant projects by Korean EPC contractors based on the findings of this research.

• Korean Journal of Construction Engineering and Management
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• v.19 no.2
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• pp.107-116
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• 2018

Since 2010, Korea's overseas construction orders have seen dramatic fluctuations. I propose causes and remedies for the industry as a whole. Orders have recorded an annual average of $63.8 billion dollars from 2011 to 2014, reaching its highest at $71.6 billion dollars(2010) which marked the peak of Korea's overseas construction. However, due to a decline in international oil prices, starting in the last half of 2014, Korea's overseas construction orders have followed suit recording $46.1 billion dollar in 2014, $28.2 billion dollars in 2016, and $29.0 billion dollars in 2017. Facing uncertainty in Korea's overseas construction market, caused by continued slow growth of the global economy, Korean EPC contractors are at a critical point in regards to their award-winning capabilities. Together with declining oil prices, the challenges have never been bigger. To mitigate the challenges, I would suggest policy direction as a way to grow and develop the overseas construction industry. Proper counterplans are needed to foster Korea's overseas construction industry. Forecasting total order amount for overseas construction projects is essencial. Analyzing contract award & tender structure and its changing trends in both overseas and world construction markets should also be included. Korea has great potential and global competitiveness. These measures will serve to enhance Korea's overall export strategy in uncertain overseas markets and global economy.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.213-220
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• 2006

Plant construction industry is a high value-adding industry because it is complex industry comprising engineering, procurements of equipments and construction. So, Revenue increase in overseas plant projects would boost up not only domestic construction industry but also growth of national economy. Recently, overseas plant-construction market is expanding dramatically. For instant, Middle-east countries are constantly increasing their orders for the construction of petro-chemical plants stimulated by sky-rocketing oil prices. The purpose of this research is to develop management techniques for plant projects such as work break-down structure, knowledge management system, logistics & procurement system, and risk assessment tools. We believe our research would contribute to the competion of Korean engineeing companies and contractors in overseas plant-construction market.

• Journal of Ocean Engineering and Technology
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• v.34 no.3
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• pp.208-216
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• 2020

The Integrated Offshore Standard Specification (IOSS) involves Korean shipyards, classification societies, research institutes, the Korean industrial society, engineering companies, and oil companies with the objective of reducing costs and risks without compromising safety in international offshore engineering procurement construction (EPC) projects using new standardized bulk components and qualification procedures. The activities of the IOSS include the analysis of the existing rules and regulations to achieve the best standardization, which is reflected in the best practices, and minimize the variables in regulations and rules. In addition, a standard inventory of shapes and dimensions, referred to as specifications, is proposed in the IOSS. In this paper, the aluminum tertiary standardization part (IOSS S102-1/2 S104: Specification for Structural Tertiary Design) is presented with the details of the procedures, background reviews, and cost-benefit analyses of the design and verification methods for standard designs in the IOSS standardization items. Based on the cost-benefit analysis, the application of standardized aluminum tertiary items to offshore projects has significant advantages in terms of maintenance and repair compared to the carbon steel tertiary items utilized in current industrial practices.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.61
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• pp.273-302
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• 2014

Project finance ("PF") is a method of raising long-term debt financing based on lending against the cash flow generated by the project alone. Project finance is a nonrecourse or limited recourse financing structure against the sponsors(or the investors). The debt terms in a project finance are not based on the creditor's credit support or on the value of the assets of the project. Lenders rely on the future cash flow to be generated by the project for debt repayment and interest, rather than the value of the project or the credit ratings of the sponsors. The non-recourse or limited recourse financing usually prompt potential project finance lenders to assess carefully all possible risks that might arise in a project to ensure that those risks are mitigated and controlled. In this respect, project finance is a opposite financing method of corporate finance. Project finance has rapidly grown over the last 20 years due to the worldwide process of privatization of public sector and development of natural resources. Global project finance volume reached the record USD 406.5 billion in 2011. In 2012, however, Global project finance volume dropped 6% to USD 382.3 billion. Infrastructure overtook Energy to lead all sectors with USD 113.6 billion. It is generally recognized that there are more and higher risks in project finance compared with corporate finance. Project finance is exposed to commercial risks as well as political risks. The main commercial risks are completion risks, environmental risks, operating risks, input supply risks, revenue risks, etc, and the main political risks are currency convertibility and transfer risks, expropriation risks, war and civil disturbance risks, risks of breach of government concession agreement, etc. Completion risks include permits risks, risks relating to the EPC Contractor, construction cost overrun, delay in completion, inadequate performance on completion, etc.

• Journal of KIBIM
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• v.9 no.3
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• pp.30-40
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• 2019

Extraction of fabrication documents is very important because it provides information related to tasks of fabrication and construction. Therefore, in the case of a prefabricated member such as a steel structure, it is necessary to improve the productivity of fabrication documents through 3D BIM. However, research and evidence data on direct comparison analysis of 3D BIM-based documents extraction versus 2D CAD-based documents extraction are hard to find. Thus, this study focuses on productivity analysis of 3D BIM based fabrication documents extraction. In this study, the productivity data of fabrication documents extraction for module construction of EPC project was analyzed. For the productivity analysis, a case study on the fabrication documents of Module A (1,965 sheets) and Module B (1,216 sheets) was conducted. Fabrication documents for each module include general arrangement drawing, assembly drawing, single part drawing and single plate drawing. Comparison of 2D CAD based fabrication documents extraction and 3D BIM based fabrication documents extraction, the productivity for the entire work was improved from 17 hours to 16 hours for Module A and 12 hours to 7 hours for Module B. Especially, the productivity of the assembly drawings, which occupies a large part of the fabrication documents, was improved by about 48.75% from the total time required from 281 hours to 144 hours.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.373-378
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• 2003

Korea's overseas construction industry has been rather depressed by the weakened profitability as well as the sharp decrease of the market shares due to the lack of international competitiveness and the declined international market following the outbreak of Iraq war. There exist a lot of various risks in performing the overseas construction, and especially EPC projects, which entail complicated process from different parts, also require a sophisticated procurement and management skill. Subsequently, to survive in the competitive international market, we need to establish strategies to select potentially profitable projects at the initial stage of bidding process and to mitigate the high degree of risk exposures through contract negotiation and its adjustment. This research provides the profitability evaluation bases, with which overseas construction participants can forecast and analyze the risk more systematically, by eliciting profit-influencing factors from real overseas construction projects and structuring their cause-and-effect relationships. The profitability causal hierarchy structure describes the profitability factors' hierarchy in details and their interrelationships. It also enables us to find out critical factors directly related to profitability aggravation through a qualitative analysis. Ultimately, with this hierarchy structure as the base, the research will suggest how to develop the quantitative profitability forecasting model.

• Journal of the Society of Naval Architects of Korea
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• v.53 no.5
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• pp.362-370
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• 2016

The weight estimation and calculation of FPSO topsides is first performed at the bidding stage of projects. At this time, it is difficult to estimate and calculate accurately the weight because most of items of FPSO are not apparently defined. Especially, in the case of the pipe rack module, its portion of the total weight and the range of weight variation are large due to special features of piping and electric equipment in the module. Thus, it is very important to estimate and calculate accurately its weight in the task of the weight estimation and calculation of FPSO topsides. In this study, the past data for the weight of the pipe rack module were collected and analyzed, the WBS (Work Breakdown Structure) for the pipe rack module was constructed, and primary variables and secondary variables for developing a weight estimation and calculation model were selected. That is, after analyzing the past data, the volume was selected as the primary variable and the regression analysis was performed based on the variable. Then, several secondary variables were selected and incorporated into a weight estimation and calculation model. At this time, the weight per discipline was assumed from ratios of the total weight. Finally, the weight of the pipe rack module was estimated and calculated by using the developed model. As a result, the deviation from the model was better than that (-20 % ~ 60 %) of other studies about the weight estimation and calculation of FPSO topsides. Thus, the validity and applicability of the weight estimation and calculation of the pipe rack could be checked.

• Korean Journal of Construction Engineering and Management
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• v.7 no.5
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• pp.64-76
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• 2006

Korea's overseas construction industry has been rather depressed by the weakened profitability as well as the sharp decrease of the market shares due to the lack of international competitiveness and the declined international market. There exist a lot of various risks in performing the overseas construction, and especially EPC projects, which entail complicated process from different parts, also require a sophisticated procurement and management skill. Subsequently, to survive in the competitive international market, we need to establish strategies to select potentially profitable projects at the initial stage of bidding process and to mitigate the high degree of risk exposure through contract negotiation and its adjustment. This research discusses the trend of environment in international construction markets. Then, it identifies the key factors that affect the profitability significantly through the structured surveys from 59 actual overseas projects, and it analyzes the key factors by using statistical methods. This research provides the profitability evaluation bases, with which overseas construction participants can forecast and analyze the risk more systematically, by eliciting profit-influencing factors using the result of statistical analysis, literature review and structuring their cause-and-effect relationships. The profitability casual hierarchy structure describes the profitability factors' hierarchy in details and their interrelationships. It also enables us to find out critical factors directly related to profitability aggravation through a qualitative and quantitative analysis. Ultimately, with this hierarchy structure as the base, the research will suggest how to develop the quantitative profitability forecasting model.

• Journal of Distribution Science
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• v.13 no.1
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• pp.27-33
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• 2015

Purpose - The ICT market in the EU is lagging behind that of the US; however, algorithm and software development within the EU have grown steadily, and they involve focusing on the creative cultural convergence conceptualized as part of Horizon 2020 and connecting neighboring markets in the EE and the Mediterranean region. It is essential to study the requirements to market the EU's creative ICT development in emerging industrial countries after examining its applicability in these countries. Research design, data, and methodology - This study deals with data pertaining to the EU's creative industry and competitive edge. The global cultural expansion of the EU facilitates a new concept involving not only low-cost IT products to enhance local cultural artifacts through R&D and the construction of efficient infrastructure services, but also information exchange with a realistic commercialization of the technology that can be applied for creative cultural localization. In the European industry, research on algorithms has been applied for the benefit of consumers. We investigated how the process is conducted in the EU. Results - Europe needs to adjust its economic structure to the local culture as part of IT distribution convergence. The convergence has been converted into a production algorithm with IT in the form of low-cost production. This is because there is an attempt to improve the quality of transport infrastructure, workforce availability, and the distribution of the distance to the local industries and consumers, using IT algorithms. Integrated into the manufacturing industry, based on the ICT infrastructure and solutions, smart localized regional clusters are formed with the help of grafting. Europe has own strategy to increase the number of hub-and-spoke cities. Europe is now becoming integrated, with an EPC system for regional cooperation rather than national competition in ICT technology. Europe has also been recognized in this study as changing the step-by-step paradigm for global competitiveness through new creative culture industries. Conclusions - As a result, there are several ways of converging with others through EU R&D intensity; therefore, the EU can be seen as successfully increasing marginal value, which is useful in developing a special industrial cluster or local cultural cities that create converged development by connecting people and objects with IT. In fact, when compared to the US, Europe has a strong culture and the car industries have a tendency to overshadow the IT industries with integration of services in IT distribution. Considering the rapid environmental changes, the convergence of IT services is likely to take place in Europe, similar to the pharmaceutical industry and the automotive industry. This requires a focus on human resources and automated systems management. The trend is to move away from low-wage industries, switched to key personnel centers of the local university-industry. EU emphasizes the creation of IT market demand in Europe involving local cultural convergence for marketing as the second step to strengthen the economic hub-and-spoke areas.