• Journal of the Korea Institute of Building Construction
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• v.16 no.5
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• pp.463-470
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• 2016

Construction companies calculate their revenues and costs from constructing activities using the 'Percentage of Completion Method', which is based on ratio of actual construction cost to total costs estimated. The reliability of the net profit of construction companies is being evaluated lower than other industries due to incorrect application of 'Percentage of Completion Method' to cover losses actually occurred. Therefore, the purpose of this study is to verify the quality of earnings calculated based on 'Percentage of Completion Method' in terms of information usefulness. Results from empirical analysis show that investors in stock market underestimate the value of the construction companies' earning information by applying 'Percentage of Completion Method' and not actively use in investment decision making. Accordingly, it has been confirmed that the association between income information and stock prices falling. These results suggest the need for strict supervision of the supervisory authorities and the practical application of 'Percentage of Completion Method' in reliability.

• International Journal of Highway Engineering
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• v.11 no.4
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• pp.117-126
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• 2009

Korea Highway Corporation has played a role of the construction and operation of the highway for the past for 40 years. The private sector since the 90s has made highway construction and operation. Central government and local governments were paid at subsidy in least operating income to 1.5896 trillion won for private operators from 2001 to 2008. Thus, Korea Highway Corporation will have important implications for understanding the cost structure. Korea Highway Corporation, a general analysis of the input element is used efficiently. And the operation of labor and capital estimated highly of the substitution elasticities. Korea Highway Corporation are judged to need financial separation of a strategic outsourcing(business) enabled and the construction(maintenance and management) and business institutions. In addition, currently running at highway the operation of institutions combined to configure a new institution, if that institution invigorate the hi-pass, more of the country's highway believe to be increase operational efficiency.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.1
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• pp.17-24
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• 2016

Many organizations have transformed their business in order to survive and compete in the future. They generate projects by creating a vision, using strategies and objectives with funds aligning strategies and make efforts to complete them successfully because project success leads to business success. All projects have triple constraints such as scope, time, and cost to be completed. Project cost performance is a key factor to achieve project goals and which is mostly related with risks among various cost drivers. Projects require a cost estimation method to complete them within their budget and on time. An accurate budget cannot be estimated due to the uncertainties and risks. Thus some additional money should be funded in addition to the base budget as a contingency reserve for identified risks and a management reserve for unidentified risks. While research on contingency reserve for identified risks included in project budget baseline have been presented, research on management reserve for unidentified risks included in total project budget is still scarce. The lack of research on estimation method and role of the management reserve have made project managers little confidence to estimate project budget accurately with reasonable basis. This study proposes a practical model to estimate budgets including contingency and management reserves for not only project cost management but also to keep the balance of organization's total funds to maximize return on investments for project portfolio management. The advantages of the proposed model are demonstrated by its application to construction projects in Korea and the processes to apply this model for verification are also provided.

• Korean Journal of Construction Engineering and Management
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• v.12 no.6
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• pp.42-53
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• 2011

This study is to present a method of compiling consistently accurate construction cost estimates in minimum of time. There are two kind of applications for estimating system based on quantity-per-unit and the daily work-crew. The former system is still applied 45% as a estimating method to construction job site by the second half of 2010. However, it is necessary for quantity-per-unit to complement the defect of standard integrating specification and improve the integrating method to the various construction conditions. The later system is intended to represent a standard or basic core which can be adopted in many type of construction estimating used across the wide variety of construction in advanced countries. In this study daily work-crew based on productivity is applied to the representative B.O.Q Item in road project. These results are compared to productivity of Japan and U.S.A estimated under the similar circumstances.

• Journal of Korea Water Resources Association
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• v.40 no.12
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• pp.995-1005
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• 2007

This study presents a framework for optimum scale determination for small hydropower development in a river basin. The framework includes the construction of hydrology and topography data, the simulation of hydropower operation, the economic analysis, and the determination of optimum scale of the small hydropower. The optimum scale of design flow and facility are determined by Net Present Value among economic analysis indices. The investment cost is estimated by the cost function derived from the construction cost of existing small hydropower plants. The benefit from power generation is estimated by the price announced by government. The presented framework is applied to the two potential sites in Cho River basin for the dam and run-of-river type of plants. Finally, the sensitivity analysis for a design flow and scale of the plant is performed for the each site. The usage of the framework presented in the study is highly expected for the estimation of potential hydropower resources or the decision support tool for a proprietor by estimating the optimum scale and economical feasibility in advance.

• Journal of the Korea Society of Computer and Information
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• v.25 no.2
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• pp.221-229
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• 2020

As the cosmetics beauty industry grows into a key next-generation industry, the establishment of an industrialization center is needed, but failure to verify the adequacy and feasibility of the investment could lead to financial burdens. In this study, the project costs and facilities of an industrial center are reviewed to analyze its economic feasibility based on the cost estimates, revenue estimates, estimated profit or loss calculations, and estimated operating cash flows. The profit estimation criteria were analyzed by applying 90 per cent of expected orders for research projects (24 billion won) and 12 per cent of rental rates for testing equipment (4.5 billion won for construction), and the benefit/cost ratio is higher than 1.02 per cent and the net present value is higher than '0' won, and the internal rate of return is also more than 5.06 per cent for all three analytical methods. Therefore, in order for the construction of a cosmetics beauty industrialization center to be economically feasible, it is necessary to maintain research project orders of more than 90 percent and return on equipment rent of more than 12 percent, and a strategic approach is needed to diversify business profits.

• Journal of Climate Change Research
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• v.2 no.4
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• pp.283-295
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• 2011

Many actions against climate change have been taken to reduce greenhouse gases (GHGs) emissions at home and abroad. As of 2007, the GHGs emitted from buildings accounted for about 23 % of Korea's total GHGs emission, which is the second largest GHG reduction potential following industry. In this study, we introduced Carbon Zero Building (CZB), which was constructed by the National Institute of Environmental Research to cut down GHGs from buildings in Korea, and evaluated the main applied technologies, the amount of energy load and reduced energy, and economic values for CZB to provide data that could be a basis in the future construction of this kind of carbon-neutral buildings. A total of 66 technologies were applied for this building in order to achieve carbon zero emissions. Applied technologies include 30 energy consumption reduction technologies, 18 energy efficiency technologies, and 5 eco-friendly technologies. Out of total annual energy load ($123.8kWh/m^2$), about 40% of energy load ($49kWh/m^2$) was reduced by using passive technologies such as super insulation and use of high efficiency equipments and the other 60% ($74.8kWh/m^2$) was reduced by using active technologies such as solar voltaic, solar thermal, and geothermal energy. The construction cost of CZB was 1.4 times higher than ordinary buildings. However, if active technologies are excluded, the construction cost is similar to that of ordinary buildings. It was estimated that we could save annually about 102 million won directly from energy saving and about 2.2 million won indirectly from additional saving by the reduction in GHGs and atmospheric pollutants. In terms of carbon, we could reduce 100 ton of $CO_2$ emissions per year. In our Life Cycle Cost (LCC) analysis, the Break Even Point (BEP) for the additional construction cost was estimated to be around 20.6 years.

• Journal of Ocean Engineering and Technology
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• v.34 no.3
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• pp.202-207
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• 2020

A track-type underwater construction robot (URI-R) was developed by the Korea Institute of Ocean Science & Technology. Because URI-R uses tracks to move on the seabed, insufficient ground strength may hinder its movement. For smooth operation of URI-R on the seabed, it is important to determine the geotechnical properties of the seabed. To determine these properties, standard penetration test (SPT), cone penetration test (CPT), and sampling are used on land. However, these tests cannot be applied on the seabed due to a high cost owing to the vessel, crane, sampler, and analysis time. To overcome these problems, a free fall cone penetration tester (FFCPT) is being developed. The FFCPT is a device that acquires the geotechnical properties during impact/penetration/finish phases by free fall in water. Depth information is crucial during soil data acquisition. As the FFCPT cannot measure the penetration depth directly, it is estimated indirectly using acceleration. The estimated penetration depth was verified by results of real tests conducted on land.

• Journal of Environmental Impact Assessment
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• v.13 no.2
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• pp.73-86
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• 2004

The objective of this research was to estimate residents' willingness-to-pay using contingent valuation method and to investigate their environmental sensibilities prior to conduct the costbenefit analysis on the watershed management program of integrated sewerage construction and operation in the catchment of Dam Chung-Ju. A set of questionnaire was prepared and asked to 1,200 residents at downstream area as well as upstream area of Dam Chung-Ju. As a result, environmental sensibility of the residents living in the catchment of upstream of Lake Chung-Ju seemed very high. However, the substantial practice in their own life for conserving their environment was inactive, although residents' efforts trying to collect and dispose garbages in separate containers and to minimize the waste discharge load were actually made. The willingness-to-pay on each month for 20 years was estimated as 4,841 wons for the openended question and 3,411 wons for the close-ended question. Factorial analysis was also performed to obtain correlation among the questions asked. Seven groups of the correlated questions were identified and their contribution to the estimated willingness-to-pay was analyzed.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.20 no.1
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• pp.26-33
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• 2012

Competition between air transportation and railways has grown fiercer in major countries around the world with the rise of high-speed railways. In South Korea, air passenger travel has been rapidly decreasing since the initial launch of the Seoul-Pusan KTX line in 2004 and second opening that followed in 2010. Further expansion of the high-speed railway is expected. At present, research efforts to verify the validity of constructing an underwater express railway tunnel between Ho-nam and Jeju Island are taking place. Considering the possible high speed railway connection between Seoul and Jeju Island, this thesis has analyzed the choice behavior of existing passengers of the major and low-cost carriers. For this, Stated Preference (SP) research has been performed for three variables, including fare, travel time and the number of runs, to estimate the substitution rate of each of the three variables. Binomial Logit Model has been estimated with the obtained data. The estimation of the model has found that airline passengers of major and low-cost carriers are willing to pay approximately 7,200 KRW and 5,000 KRW, respectively, to reduce travel time by one hour. If the number of runs in one day increases, it has been estimated that the passengers are willing to pay additional fares of about 390 KRW and 30 KRW, respectively. On the other hand, the substitution rate between the number of runs and the travel time was found to be somewhat insignificant. If the construction of the Seoul-Jeju line progresses in the future, this study could be used as preliminary data for determining fares, travel time and the number of runs.