• Proceedings of the Korean Institute of Building Construction Conference
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• 2014.11a
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• pp.218-219
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• 2014

The selection of an appropriate contract method is vital for the successful operation of the project. However, there has been a lack of studies on objective decision making support models for use in the planning stage of a project contract. The present study had the goal of analyzing the factors that influence contract method selection, as an initial study for developing a project contract method selection model. The existing related studies were analyzed, and the factors considered in the literature were selected. Then, based on the findings, the opinions of an expert group on the important factors for contract method selection were collected through a survey. The collected opinions were analyzed using factor analysis, a statistical analysis method. The results will be utilized in the future as preliminary data for developing a decision making model for selecting a contract method.

• Journal of the Korean Society of Safety
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• v.30 no.3
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• pp.85-92
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• 2015

This study examined the effects of employers' breach of safety obligation and violation of psychological contract on the workers' safety behaviors and turnover intention. Especially, this study examined a mediating effect of violation of psychological contract on the relationship between employer's breach of safety obligation and workers' safety behavior and turnover. 198 workers were asked to respond to the questionnaires that measured various demographic variables, employers' breach of safety obligation, violation of psychological contract, safety behavior, turnover intention. A hierarchical regression was conducted to identify variables that had significant relationships between employers' breach of safety obligation and employees' safety behavior and turnover intention, and to examine the mediating effect of violation of psychological contract. Results indicated that the employers' breach of safety obligation significantly predicted both workers' safety behaviors and turnover intention. It was also found that the violation of psychological contract was a significant predictor for both workers' safety behavior and turnover intention. In addition, violation of psychological contract was found as mediating effect on the relationship between employers' breach of safety obligation and workers' safety behavior and turnover intention. Based on these results, the implications of this study and suggestions for future research were discussed.

• International Journal of Highway Engineering
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• v.20 no.1
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• pp.1-8
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• 2018

PURPOSES : Case studies of an asphalt-overlay project with a performance-based contract method were conducted on a national highway in Korea to evaluate the effect of the method on asphalt pavement maintenance. This study evaluated the procedure of the performance-based contract method. METHODS : In this study, an asphalt-pavement maintenance project for a national highway was assessed with a performance-based contract to investigate the advantage of the new contract procedures. This is the first trial applying the performance-based contract to a pavement-rehabilitation project in Korea. In the four case studies, the warranty period of the performance-based contract was designed for seven years. The research team monitored the construction site to compare the normal contract method with the performance-based contract method. The case studies' project sites were investigated after the end of the construction. RESULTS : Based on the limited case studies, the performance-based contract method could extend the service life of the asphalt pavement and reduce the pavement-maintenance budget because the quality control was well managed by the contractors. However, a few construction laws would be necessary to apply the performance-based contract method in the future. CONCLUSIONS : Using the performance-based contract, the construction company made great efforts to guarantee the warranty period and to apply the optimal maintenance method, based on the pavement distress condition. The contractor and the agency would need to understand the new performance-based contract system for it to be activated. Therefore, a proper education program for the performance-based contract system would be needed to educate the stakeholders regarding the procedures and their effects on the pavement management and maintenance.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.50
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• pp.3-25
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• 2011

The purpose of this paper is to examine the use of LD Clause against the seller's breach of contract in connection with delivering the goods in the international sales contract, and international guarantee system using standby L/C or demand guarantee. For this purpose, the author, first, considered the outline of the buyer's remedies in cases that the seller had not performed his obligations in contract and the difficulties in the buyer's remedies. As alternatives for overcoming the difficulties, this author recommended the LD Clauses (Liquidated Damage Clauses) based on ICC Model International Sales Contract, and explained each Model Clause. To enhance the feasibility of LD Clause, this author suggested the guarantee system, like the standby L/C or demand guarantee. But these guarantee systems have several limitations in practical use. Thus, these guarantee systems would greatly contribute to Korean exportation in the future. The reason is that the Korean export structure would be more complex and the period of sales contract would be longer and longer, which result to in long-terms supply contracts. These changes would require the guarantee much urgently.

• Journal of Korean Institute of Industrial Engineers
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• v.27 no.4
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• pp.345-351
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• 2001

We are concerned with a multiple replenishment contract with a purchase price discount in a supply chain. The chain is composed of one supplier, one buyer and consumers for a product. The replenishment contract is based upon the well-known (s, Q) policy but allows contracting several firmed orders at a time with a price discount. Due to a larger forecast error of the future demand, the buyer should keep a higher level of safety stock to provide the same level of service of the usual (s, Q) policy but can reduce his purchase cost by placing larger quantity. Thus there exists a trade-off between the price discount and inventory holding cost. We present a model for the contract and an algorithm to find the optimum number of the firmed orders. Computer experiments show that the algorithm finds the global optimum solution very fast.

• Journal of Information Technology Services
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• v.5 no.1
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• pp.61-81
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• 2006

It is necessary to systematically explore the reform plans of the Software Industrial Promotion Law to systematically a representative high-added value future knowledge-based industry, software industry. The current Software Industrial Promotion Law provides only one provision on software business contract procedures, and the Civil Code, the National Contract law or Subcontract Fairness Law regulate other things, so the features of software industry are not properly reflected. To the contrary, the Information Communication Construction Law or the Construction Basic Law effectively prevent disputes by providing material and detailed provisions. Therefore the current software industry needs to be shifted from promotion to fundamental one. That is, as the software industry takes up a large portion at present, so the law should have basic procedural provisions. Also the National Contract Law governs only the contract procedures of public sector, so there should be business performance procedural provisions to regulate the software business formalities of civil sector. And the National Contract Law controls the sale, construction and service of articles at separate contract procedures, but software business contains construction and service characters simultaneously, so there should be business performance procedures fit for software business. Thus this study presented the legislative need and bill on the performance procedures of software business.

• Journal of the Economic Geographical Society of Korea
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• v.19 no.3
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• pp.535-549
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• 2016

The contract farming scheme of today is a new system that allows the forward and backward linkage of the agribusiness through vertical coordination while also leading the changes within the agri-food system. As contract farming of agricultural products becomes routine in both advanced and developing countries alike, it is gaining the attention of researchers in various fields, including geography. This research discusses the research trends and problems regarding contract farming through literary research on the research progress of foreign researchers on contract farming. The content of the research specifically includes explanations regarding the relationships between the rise of contract farming and changes in the agri-food system and discusses the basic theoretical foundations of contract farming. The research also defines the economic and environmental effects of contract farming and its purpose in regional development policies and concludes with discussions of the possible future research subjects on contract farming.

• International Journal of Reliability and Applications
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• v.8 no.2
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• pp.183-197
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• 2007

There is a growing trend for asset intensive industries to outsource maintenance services of their complex assets since outsourcing through service contract reduces upfront investments in infrastructure, expertise and specialised maintenance facilities. Estimation of costs for such contracts is complex and it is important to the user and the service providers for economic variability. The service provider's profit is influenced by many factors such as the terms of the contract, reliability of asset, and the servicing strategies, costs of resources needed to carryout maintenance. There is a need to develop mathematical models for understanding future costs to build it into the contract price. Three policies for service contracts are proposed in this paper considering the concepts of outsourcing maintenance service of assets to the service providers. Conceptual models are developed for estimating servicing costs of outsourcing through service contracts by considering time dependent failure mode.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.699-704
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• 2005

Normally, monetary penalties for breach of agreement will be stipulated in the contract. The contractor parties, who fail to fulfill the agreement, are required to pay the other parties a certain amount or proportion of money as a fine. However, it is worth our study - whether or not the scope of monetary penalty implementation and bases for determination of a fine will cover the losses of social and administrative costs incurred by the interruption of the contract. This research is about the best timing for government to cancel the freeway repair work contracts. Under the goal of the maximum social welfare, the limitation of government spending for the social and administrative costs invoked by interruption of contracts will have to be considered to attain the best timing of contracts' suspension or deferment. According to the factors of social and administrative costs, the best time point is calculated to reduce the loss of the aforesaid costs, which can also be used as theoretical basis for the future road-widening construction at home.

• International conference on construction engineering and project management
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• 2022.06a
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• pp.57-66
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• 2022

Claims and disputes are major causes of cost and schedule overruns in the construction business. In order to manage claims and disputes effectively, it is necessary to analyze various types of contract documents punctually and accurately. Since volume of such documents is so vast, analyzing them in a timely manner is practically very challenging. Recently developed approaches such as artificial intelligence (AI), machine learning algorithms, and natural language processing (NLP) have been applied to various topics in the field of construction contract and claim management. Based on the systematic literature review, this paper analyzed the goals, methodologies, and application results of such approaches. AI methods applied to construction contract management are classified into several categories. This study identified possibilities and limitations of the application of such approaches. This study contributes to providing the directions for how such approaches should be applied to contract management for future studies, which will eventually lead to more effective management of claims and disputes.