• Korean Journal of Construction Engineering and Management
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• v.13 no.1
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• pp.67-76
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• 2012

There are index adjustment method and item adjustment method in estimation methods for price fluctuation rate of public constructions. A relevant regulation has put item adjustment method as a principle, but in most construction, contract sum adjustment has been made by index adjustment method. Hence, this study, by figuring out width and causes of the gap between index adjustment method and item adjustment method through direct comparative analysis, solved inequality caused by difference between them and suggested a rational way against irrationality of each method. For building operations of public housing construction, a detailed fluctuation rate by index adjustment method and item adjustment method of construction cost elements of the same construction, that is, direct material cost, direct labor cost and historical construction cost was estimated to analyze difference between two adjustments and establish its cause. Across the analysis, it was found that fluctuation rate by item adjustment method was estimated lower than that by index adjustment method and difference between methods for estimating fluctuation rate of quotation unit price and application of index unrelated to construction type and construction nature are main causes of the difference. This study has a significance in that, for smooth contract sum adjustment between contracting parties, it practically proved the real difference between adjustment methods by conducting comparative analysis of the difference in direct correspondence way.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.1112-1117
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• 2005

Construction cost index is generally used to estimate the new project cost based on past construction data and to adjust contract cost when the price change of various articles and items of expenditure composing the contract occurs. In Korea, it is mostly used for adjustment of construction contract cost due to fluctuation of prices. However index adjustment rate which is used for adjustment of construction contract cost had some problems in calculating cost index of each expenditure item that could not reflect properly the change of construction cost. For supplementing these problems, the research of developing construction cost index has been executed. Through the precedent research, these problems were partially resolved but still remain. Therefore this research proposes method of making cost index that utilizes representative items of labor, material, and equipment by analyzing bill of quantity of road construction, through analysis and comparison of precedent study. By using this method, it is expected to solve problems which were not reflected in precedent studies.

• Health Policy and Management
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• v.3 no.1
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• pp.84-101
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• 1993

The current method of rate adjustment is based on the evaluation of the financial performance of hospitals. The method has the disadvantages such as too complicated, expensive process as well as low reliability due to small sample size. This study, therefore, develops a new model for the rate adjustment with the use of the composite index. In addition to that, it examines the validity of the model by comparing the result of the new method with that of the conventional method. The idea of the new model comes from the Medicare Economic Index(MEI) on which physician fees for the Medicare patients are adjusted periodically in the United States. Medical costs are classified into three groups : labor costs, materials and other expenses. Labor costs are subdivided into physicians and other personnels. Materials are subdivided into drugs and others. Other expenses are subdivided into 5 items. Macro economic indices are selected for each cost item in order to reflect the cost inflation during the specific period. Then the composite index which integrate all items according to the ration of each item in the total costs is calculated. The result from the application of empirical data to the new model is very similar to that of the current method. Furthermore, this method is very simple and also to easy to get social concensus. This model can be replaced the current method based on the analysis of the financial performance for the adjustment of medical fees.

• Proceedings of the Korean Institute of Building Construction Conference
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• v.y2004m10
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• pp.83-86
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• 2004

Index adjusted ration method has been widely utilized in public construction secter for contract sum adjustment by price fluctuation. In this method. the Production Price Index are used for calculating the base ratio. but the PPI can't reflect the property of construction project in respect of the selected item and weight structure. In this research we prove the problem of using the index adjusted ration method in contract sum adjustment by price fluctuation. and improve it by using the construction cost index. which has the property of construction project. And the result. we figure out the difference between the PPI and CCI by $6.7\%$ in maximum value.

• Korean Journal of Construction Engineering and Management
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• v.6 no.1 s.23
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• pp.162-168
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• 2005

Index adjusted ratio method has been widely utilized in public construction sector for contract sum adjustment by price fluctuation. In this method, the Production Price Index are used for the base ratio, but the PPI can't reflect the character of construction project in respect of the selected items and weight. In this research we prove the problem of using the index adjusted ration method in contact sum adjustment by price fluctuation, and improve it by using the construction cost index, which has the property of construction project. And we figure out the efficiency of the proposed method by case study.

• Health Policy and Management
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• v.9 no.1
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• pp.156-177
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• 1999

The current method of rate adjustment for inflation is based on the evaluation of the financial performance of hospitals. The method has the disadvantage such as too complicated, expensive process as well as low reliability. This study, therefore, develops the 'Korean Medical Insurance Economic Index(MIEI)' as a new model for the rate adjustment with the use of the macro economic indices. In addition, we calculate the 1992∼1998 rate adjustment with the MIEI, and examines the validity of the MIEI by comparing with the conventional method. Medical costs are classified into nine categories : physician salaries, nurse·pharmacist·medical technician salaries, assistants & others salaries, material cost(by imports), material cost(by domestics), depreciation & rent paid(by imports), depreciation & rent paid(by domestics), power utilities, other administrative costs. Then the category weight which is the ratio of category in the total cost is calculated. Macro economic indices are selected for each cost category in order to reflect the concept of the each cost category and inflation during the year of 1992∼1998. Finally MIEI which integrate all category according to the category weight and selected macro indices is calculated. The mean of hospital MIEI which weighting by amount paid by insurers was cacluated. The result from the application of empirical data to the MIEI model is very similar to that of the current method. Furthermore, this method is very simple and also easy to get social consensus. This MIEI model can be replaced the current method based on the analysis of the financial performance for the adjustment of medical fees.

• Korean Journal of Construction Engineering and Management
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• v.12 no.4
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• pp.70-78
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• 2011

In case of long time progressive construction work, we need contract sum adjustment due to escalation for a period of works and the process of applying, consistent and obvious criterion is required. In this study, it were attempted to figure out problem and study this rational improvement by giving examples based on core activities of escalation adjustment. Based on literature study and legal system analysis, we classified processes of contract sum adjustment for escalation and defined 20 core activities for each process. From this measured variable, we carried out case study by giving 37 examples of escalation. As a result of case study, problems of each process was found and we suggested rational improvement. As this study, providers will be able to waste budget and the other will be given smooth escalation adjustment.

• Korean Journal of Construction Engineering and Management
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• v.12 no.2
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• pp.3-11
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• 2011

There are several causes to recalculate the contract amount in public construction projects. Among them, the escalation clause was introduced in 1969 and now the condition to recalculate the cost is effective after 90 days from the date of contract and the rate of fluctuation should be more than 3% from the date of bidding. The two calculation methods for the rate of fluctuation are item-adjustment and index-adjustment. According to the results of investigation into 4 public institutions and 163 projects, all of them have used the method of index-adjustment and the rate of projects that spend over 6 months obtaining the approval of contract amount adjustment is more than 90%. The reason for spending lots of time is caused by problems of the calculation method on the price fluctuation rate. Therefore, it is necessary that the calculation method should be diversified to cope with the problems and a option of the builder should be expanded as well. Furthermore, if the way to apply correction factors to construction price index and average index based on the producer and consumer price index made by the bank of Korea is added, then the duration will be reduced without additional expenses. This study proposed the diversification of the calculation method using price fluctuation rate and builders' expanded options as improvement on the managerial method of Price Fluctuation System for the prompt and efficient contract amount adjustment.

• Journal of Korean Society of Disaster and Security
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• v.16 no.3
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• pp.35-43
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• 2023

This study introduces a study on the adjustment methods of the Life Safety Index. The Life Safety Index is a service provided by the Life Safety Prevention Service System. It comprehensively evaluates individuals' levels of safety in their daily lives, continually monitors their safety status, and presents a comprehensive index to prevent safety accidents in advance. Previous studies have developed the Life Safety Index using evaluation criteria (items) for assessing life safety prevention services, incorporating both the AHP (Analytic Hierarchy Process) and Likert Scale techniques. In this study, we build upon this existing Life Safety Index and explore methods for applying adjustment factors based on individuals' characteristics to enhance its accuracy and customization. We develop adjustment factors using existing national statistics to provide personalized services tailored to individual profiles. Therefore, this paper proposes a method for providing customized services by applying adjustment factors to the Life Safety Index, contributing to the development and application of life safety index adjustment methodologies.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.35 no.1
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• pp.217-227
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• 2015

This study conducted case studies in order to suggest the improvement of GDP (Gross Domestic Product) deflator method which is adopted on calculating fluctuation rate on BTL (Build-Transfer-Lease) sewer rehabilitation projects in Jeju. As a result, because GDP deflator method calculates fluctuation rate by each quarterly, the fluctuation rate of GDP deflator method is higher than it of index adjustment rate method. And GDP deflator method cannot reflect real price because of applying fixed index in whole construction cost for calculating fluctuation rate. Especially, the notification day - the base point influences fluctuation rate and fluctuation amount strongly in GDP deflator method.