• KSCE Journal of Civil and Environmental Engineering Research
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• v.28 no.1D
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• pp.107-117
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• 2008

Private financing is playing an increasing role in public infrastructure construction projects worldwide. However, private investors/operators are exposed to the financial risk of low profitability due to the inaccurate estimation of facility demand, operation income, maintenance costs, etc. From the operator's perspective, a sound and thorough financial feasibility study is required to establish the appropriate capital structure of a project. Operators tend to reduce the equity amount to minimize the level of risk exposure, while creditors persist to raise it, in an attempt to secure a sufficient level of financial involvement from the operators. Therefore, it is important for creditors and operators to reach an agreement for a balanced capital structure that synthetically considers both profitability and repayment capacity. This paper presents an optimal capital structure model for successful private infrastructure investment. This model finds the optimized point where the profitability is balanced with the repayment capacity, with the use of the concept of utility function and multi-objective GA (Generic Algorithm)-based optimization. A case study is presented to show the validity of the model and its verification. The research conclusions provide a proper capital structure for privately-financed infrastructure projects through a proposed multi-objective model.

• Korean Journal of Construction Engineering and Management
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• v.13 no.6
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• pp.3-12
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• 2012

The slowdown of private building industry resulted in growth of remodeling market as a way to improve energy performance. Remodeling is considered more cost-effective and eco-friendly approach for energy efficient building than new construction. Since 2008, Seoul has promoted Building Retrofit Project (BRP) preponderantly to attract energy-saving renovation by supporting building owners to switch building system into energy-saving system when they remodel their old buildings. According to 2012 press release, 254 Private sectors participated in this green building project and annually reduced 41000ton of greenhouse gas emission, 14000TOE, which also result in 7.5 billion won energy cost savings per year. The paper focuses on the building envelope remodeling as a way to improve energy efficiency. Different components of the building envelope such as wall insulation, window, and shading, were applied to the baseline model and the comparison was analyzed to come up with the ideal solution. This study only assesses the building envelope as to suggest the way to redesign the better energy performing building. Offering solution focusing on the architectural feature is essential because it will provide basic information and standard when remodeling a building for energy efficiency, especially, for the nonresidential buildings used as rental offices.

• Korean Journal of Construction Engineering and Management
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• v.9 no.6
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• pp.137-146
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• 2008

Both competent authorities and private entrepreneurs face plenty of risks when negotiating BTO(Build Transfer Operation) methods of PPI(Private Participations in Infrastructures) projects. Also, success and failure of projects largely depend on the concession agreement contract. In this study, for more efficient negotiation, major issues are examined, and quantitatively analyzed to find out not only the relationship but also the characteristics of which these issues share. Questionnaire research was conducted through both research and by experts who were divided into an ordering agency, design company and constructor. Characteristics of major issues were quantitatively analyzed using the Likert index method, ANOVA(ANalysis of VAriance) and AHP(Analytic Hierarchy Process) analysis. Case studies were examined in order to estimate construction cost, rates of return, government finance support, level of operation-revenues guarantees, estimating operational costs and usage fees. With these 6 items, relative priority, relative impression which is sensible to risk and extent of difficulty in presenting data which is objective were quantitatively analyzed by the ordering agency, design company and constructor groups. From the analysis, there were some similarities between the design company and constructor groups while there was less of similarities between the ordering agency and design company or constructor. The government is diversifying the methods of project promotion, and PPI project from infrastructure-centered to public culture facilities are being expand. The current study will provide not only supporting efficient negotiation but also revitalizing PPI projects.

• Journal of the Korea Institute of Building Construction
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• v.17 no.5
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• pp.473-481
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• 2017

With the barracks modernization project, the Ministry of National Defense has been operating 60 projects of the 75 that have been announced. It was difficult to investigate and analyze the data in the past because data could not be obtained while it was much easier to do that since data can be obtained from private companies. With the aim of increasing the usability of the facilities, the objective of this study is to present a reasonable alternative for repair and maintenance costs by investigating and analyzing the budget and the actual expenses of repair and maintenance of military facilities for the past 3 to 5 years, and then identifying the problems with these. To accomplish this, a theoretical review of previous studies and legal grounds related to repair and maintenance costs was performed, and data on the estimates and the actual expenses data used in BTL projects carried out by private companies were analyzed. First, one of the problems was that there are some items omitted, including consumables, and these items should be included in order to secure their budget. Second, in terms of the items for divided payments, two improvements had been presented: a short-term payment plan for the operation period of 3 to 5 years and a long-term payment plan for an additional and complemented period other than the operation period. The repair and maintenance costs should be further studied at the point of time in a future when the actual data on the costs and operation period of military facilities can be secured. This study is expected to serve as empirical data that will form the basis for a reasonable calculation of the construction cost for military facilities.

• Journal of the Korea Institute of Building Construction
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• v.10 no.1
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• pp.163-173
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• 2010

A significant number of projects have been managed by US Army Corps of Engineers FED. Today, more information must be provided to the parties involved in the projects by phase than ever before. Specifically, USFK`s construction projects have been managed by FED(Far East District). Recently, however, large US private construction companies have been filling the role previously taken by FED. However, there is few construction managers to implement FED project in Korea. Accordingly, this study analyzes FED projects practices with focus on the construction management actors in order to suggest guideline. This study suggests a model FED construction process(Bid, Contract, Construction, As-Built Phase) by analyzing the existing FED project process using a IDEF0 methodology.

• Journal of the Korea Institute of Building Construction
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• v.11 no.3
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• pp.292-300
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• 2011

The construction industry in Korea has seen significant improvements in quality management techniques, driven by the dramatic development of new technology through Manhattanization and enlargements, but compared with technical development, the level of building quality improvement is still lagging behind. In the meantime, as the interest in construction quality soars due to changes in user consciousness, the level of quality that is being demanded is rising. The government has reinforced quality systems by implementing responsible supervision requirements and granting overseas companies permission to enter the supervision business in Korea, and private sector companies also are attempting quality improvement through quality assurance approaches like the preliminary qualification screening system and ISO 9000 series. But currently, building constructions are done only according to the construction specifications of project owners, whose design, materials and construction methods are already decided, and do not leave any necessity or opportunity for technical developments for the quality improvement of contractors. Therefore, in this study, a work process and system improvement plan for payment regulations is proposed, with which contractors can secure quality voluntarily in the building construction phase.

• Journal of the Korean housing association
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• v.20 no.2
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• pp.37-46
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• 2009

With old housing being renovated in both the Gatdui and Daean areas, of the Gyeongju downtown area, this study was carried out to examine the implications of various renewal approaches in a city that is rich in both history and culture. The study included a physical survey of the areas under construction as well as a questionnaire given to residents to analyse their level of satisfaction with and requirements for housing and their preferring housing types. The study also analysed renewal patterns among the residents were analysed by examining the ways in which particular renovations had been performed. The findings showed that both governmental authorities and private parties need to be involved and work together if such renewals are to be successful. In recent years there have been regular conflicts between those in favor of development and those in favor of preserving the historic and cultural resources of the city. At times the city identity has been neglected by residents. In the future, it will be necessary to take both development conditions and the residents' economic situations into consideration when making decisions about renewal and to consider a wide range of methods for rearranging housing patterns, with the goal of transforming housing renovation into a broader program of social rearrangement for the purpose of improving social patterns in the city.

• Journal of architectural history
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• v.15 no.1 s.45
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• pp.7-27
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• 2006

This study aims to identify and analyze the factors that influenced the construction of London Eye which was led by private groups, including characteristics in progress, differentiated value in design, the combination of technology and design, and construction costs. The results of this study were the followings. 1) London Eye provides a new construction method for a landmark in the downtown in that the architects became the clients of the project which might have been hoarded, procuring the construction costs and completing it by themselves. 2) London Eye presents a space utilization method where undeveloped spaces in the downtown are used in three-dimensions by erecting a structure on the river with a minimum land. 3) The process of design, production and erection is propelled the realization of technical intention design with one system and from at the initial stage, the participation of the engineer where the designer is equal with you must accompany. 4) London Eye is endowed with strong shape by a circle in design concept, which is the simplest geometrical figure, and it provides organic relationship between the past and the present by utilizing historical elements in various ways. 5) The construction was completed through four phases including idea phase, promotion phase, turn-key contract phase, and design-build phase. The most critical factor to the success is derived from the direct contact with Involved companies from the production phase. 6) In a project facing many challenges in terms of technology, the design-build method proves to be a more effective method than turn-key contract in that it may more allocate risks and enable coherent implementation of the core concept in design. The organization for the design-build method was composed of three phases including general affairs, responsible contracting by sector, and cooperative system by sector. Since that was a new concept structure, high-level contractors who hadn't had existing cooperative relationships with one another formed new cooperative relationship, while collaborating companies who had long cooperated led the responsible contracting and sub-cooperative system, which resulted in reduction of risks and time. 7) The major factors to change design were the design characteristics, derived from a technically great combination, and the opening time. 8) A new erection method was applied to London Eye, a structure that overcame the limitation in land and period, and the process of installation demonstrated that it is an important value for the construction of a landmark in the city. 9) In spite of many visitors and tremendous operational income, the factors that London Eye fails to free itself from debts include the construction costs expended double than expected, and interest burden to the investments, which occurred in the course of procuring the costs. Absolute limit in time increased the construction costs, resulting in being a great obstacle in the course of operation.

• Korean Journal of Construction Engineering and Management
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• v.12 no.2
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• pp.32-40
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• 2011

The PPPs(public private partnerships) which was introduced in the later part of the 1990s has grown since 2005, with the beginning of BTL(Build Transfer Lease) type which retrieves the investment by receiving the lease payment from the government. As application areas and scale of the PPPs have been further expanded, it is expected the demand on special purpose facilities will be increased. We do know only successful foreign practices of the PPPs but have rarely consider the failure cases. Therefore, this paper derives implications by analyzing the case of National physical laboratory project which is known as a typical failure case of UK's PFI. We find that from the perspective of governance, the reasons leading to the failure of business are an insufficient of technical rationality, unsettled social relationships and inefficient risk management. Based on the case study, this study shows how to improve management system for special purpose PPPs business in Korea.

• Korean Institute of Interior Design Journal
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• v.24 no.5
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• pp.117-127
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• 2015

This paper depicts a case study of the BIM (Building Information Modeling)-enabled evaluation of design alternatives for an actual remodeling project in Yeongwol, Korea. The increase of urban population and income followed by the growth of economy has derived massive supply of grand scale housing project in Korea since 1970s. Consequently, building remodeling became one of the feasible resolutions for renovating such old housings in these days. This paper aims to introduce a technical approach to such remodeling projects based on BIM-enabled applications focusing on quantitative analysis of design alternatives. Among the technical issues of such building remodeling projects, this paper focuses on the BIM-enabled area analysis and comparison between design alternatives to support decision-making even in early phase of remodeling design process. BIM and its variety of applications have broadly influenced the domain of AEC-FM (Architecture, Engineering, Construction, and Facility Management) within the lifecycle of buildings. As one of the applications facilitated by BIM, the automated area calculation and scenario-based comparison between alternatives can play an important role in the early phase of remodeling project. We modeled three design alternatives (buildings) and three housing modules (units) based on the actual case in Yeongwol city, Korea using a BIM design authoring tool. Nine combinatorial BIM models were demonstrated for the BIM-enabled review process described in this paper. To determine the most optimal design scenario among nine alternatives, this paper demonstrates a result of the conducted spatial program review. The main subject includes specific spatial program issues on; 1) the number of unit spaces; and 2) area of individual/grouped and private/shared spaces.