• 국제학술발표논문집
• /
• The 6th International Conference on Construction Engineering and Project Management
• /
• pp.70-71
• /
• 2015

Cost management always being the matters for project manager as well as other entities involved the construction projects. Vietnam is emerging country, many construction works were carried out and lot of construction projects will be developed in the near future with a huge investment capital come from outside and inside Vietnam. In recent years, international project management firms enter the Vietnam construction market, some issues emerged need to be solved. In which cost and schedule of the construction project was put in a thoroughly consider of not only project management team but also stakeholders. The research attempts to identify and assess the relationship of factors affecting the construction cost in construction phase in Ho Chi Minh City, Vietnam. Five main factor groups Owners/clients; Consultants; Contractors; Resource and Other were identified to propose the solution for cost management.

• Journal of Construction Engineering and Project Management
• /
• 제10권1호
• /
• pp.16-32
• /
• 2020

Cost and time control of projects is important in preventing project failure. However, achieving effective cost and time control in practice is often challenging. The challenges of project cost and time control in practice are investigated by carrying out a questionnaire survey on the top 150 construction contractors in the UK followed by in-depth semi-structured interviews of practitioners from 15 construction companies in the country. Quantitative analysis reveals that design change is the most important factor inhibiting the ability of UK contractors from effectively controlling both the cost and time of construction projects. Four of the top five factors inhibiting effective cost control are also the top factors inhibiting effective time control albeit in a different order. These top factors-design changes, inaccurate evaluation of project time/duration, risk and uncertainty, non-performance of subcontractors and nominated suppliers were also found to be endogenous factors to the project. Additionally, qualitative analysis of the interviews reveals 16 key challenges to prevent for effective project cost and time control in practice. These are classified into four categorised based on where they stem from as follows; from the organisation (1. Lack of integration of cost and time during project control, 2. lack of management buy-in, 3. complicated project control systems and processes, 4. lack of a project control training regime); from the construction management/project management approach (5. Lapses in integration of interfaces, 6. project control not being implemented from the early stages of a project, 7. inefficient utilisation and control of labour, 8. limited time devoted to planning how a project will be controlled at the outset); from the client; (9. Excessive authorisation gates, 10. use of adversarial and non-collaborative forms of contracts, 11. communication problems within client set-up, 12. obstructive client representatives) and; from the project team (13. Lack of detailed/complete design, 14. lack of trust among the project partners, 15. limited time devoted to project control on site, 16. non-factual reporting). The study posits that knowledge of these project control inhibiting factors and challenges is the first step at ensuring they are avoided and enable the implementation of a more effective project cost and time control process in practice.

• 농촌계획
• /
• 제19권3호
• /
• pp.131-144
• /
• 2013

The existing standard cost of project management of empowerment sector in general rural development project has problems with standard cost system without considering characteristics of empowerment project and unclear division of works. These problems are a lot of trouble to fulfill the project. Thus, it needs an arrangement of standard cost considering detailed characteristics of project management in the empowerment sector. The contents and results of this study can be summarized as follows. 1) To set accurate standard cost, we carried out three-step processes, such as elicitation of standard works, calculation of workload and determination of standard cost. (1) In an investigation of 30 rural area dividing 8 parts about an workload of empowerment project, an average workload is 1,499 hours. (2) Based on this results, the standard cost is calculated at 15% of project cost in over 600 million won, at 28.75% of project cost in under 500 million won, by standards of empowerment project cost. 2) It set the responsibility management cost to 15% of empowerment project cost considering existing awareness, workload and work professionalism of project management. Based on the results, It suggested the practical use as basis for efficient management of the future empowerment projects. To achieve this, It needs to promote maximizing results on the whole project through the legalization processes including amendment of existing regulations.

• 한국IT서비스학회지
• /
• 제13권4호
• /
• pp.169-188
• /
• 2014

Recently the complexity and difficulty of the IT projects are increasing due to technological and environmental risks, resulting in the adoption of PMO(Project Management Office) onto IT project management practices, including public area projects. For example, the Korean government regulated the application of PMO onto large scale public IT projects. However, since there has been no reliable method to estimate the cost to execute PMOs, a PMO cost evaluation model to support the budget and cost planning of PMO projects is required. Thus, the purpose of this research is to develop a systematic cost evaluation model for PMO projects. We identified the dimensions that determine the PMO execution cost to be the scale of the subject project, the technical difficulty level of the subject project, and the tasks to be executed in the PMO project. Based on the determinants, the PMO execution cost model were developed from historical data and experts opinion. Upon verification, the validity of the developed model has high level of consistency compared with their experiences of real PMO project costs.

• 한국건설관리학회논문집
• /
• 제14권3호
• /
• pp.12-21
• /
• 2013

정부 재정지출의 효율성 제고를 위해 도입된 총사업비관리제도는 그간 대형 신규 공공투자사업 추진 시 적정한 절차를 순차적으로 거치도록 의무화하고, 총사업비 증가율을 억제하는 등 일부 성과가 있었다. 도입 18년이 지난 시점에서 공공건설사업의 사업비 관리의 근간이 되는 총사업비관리제도에 대한 적용 실태 및 제반 운영에 대한 사업참여자들의 인식을 조사하고, 설문을 통하여 운영상의 문제점을 도출하여 이에 대한 개선방안을 제시하였다. 기본적으로 공공건설사업의 사업비 관리는 사업 초기 단계에 예산을 정확히 산정하고, 후속 단계에서 이를 지키려는 노력을 시행하며, 확정된 예산에 가장 부합하는 사업의 가치 확보라는 개념에 입각해서 계획하고 관리하여야 한다. 공공건설사업의 총사업비관리의 체계화하고, 담당자의 전문성을 제고하는 한편 발주처의 자율성을 확대하여야한다. 무엇보다도 총사업비관리 대상사업의 적기 준공을 유도하여 사업기간 지연으로 인한 총사업비의 증액을 방지 할 수 있는 여건 조성이 필요하다.

• 산업경영시스템학회지
• /
• 제39권1호
• /
• pp.17-24
• /
• 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.

• 국제학술발표논문집
• /
• The 5th International Conference on Construction Engineering and Project Management
• /
• pp.243-251
• /
• 2013

Cash management is a major concern for all contractors in the construction industry. It is arguable that cash is the most critical resource of all. A contractor needs to secure sufficient funds to navigate the project to the end, while keeping an eye on maximizing profits along the way. Past research attempted to address such topic via developing models to tackle the time-cost tradeoff problem, cash flow forecasting, and cash flow management. Yet, little was done to integrate the three aspects of cash management together. This paper, as such, presents a comprehensive model that integrates the time-cost tradeoff problem, cash flow management, and cash flow forecasting. First, the model determines the project optimal completion time by considering the different alternative construction methods available for executing project activities. Second, it investigates different funding alternatives and proposes a project-level cash management plan. Two funding alternatives are considered; they are borrowing and company own financing. The model was built as a combinatorial optimization model that utilizes ant colony search capabilities. The model also utilizes Microsoft Project software and spreadsheets to maintain an environment that incorporates activities, their durations, and other project data, in order to estimate project completion time and cost. Ant Colony Optimization algorithm was coded as a Macro program using VBA. Finally, an example project was used to test the developed model, where it acted reliably in maximizing the contractor's profit in the test project.

• 한국건설관리학회논문집
• /
• 제7권4호
• /
• pp.177-183
• /
• 2006

Risk-based estimation has been successfully introduced into the construction industry. By incorporating historical data associated with probability analysis, risk-based estimate is an effective decision support aid in considering whether to launch a particular project. The industry challenges, however, especially related with management issues, such as labor shortage, wage growth, and supply chain complexity, have often resulted in poor cost performance. The insufficient assessing the project characteristics (i.e., resource availability, project complexity, and project delivery method) can be the main reasons in the poor cost performance. Because the accuracy level of cost performance prediction can be enhanced by extensive evaluation of the subject project characteristics, a new approach for predicting cost performance in an earlier stage of a project can improve the Industry substantiality, in other words, value maximization. The purpose of this paper is to develop a new methodology in developing a risk-based estimate tool by incorporating extensive project characteristics. To do this, an extensive industry survey was conducted from both private and public sectors in building industry in Korea. In addition, significant project characteristics were identified in terms of cost performance indicator. Although the data collection is limited to Korean industry the suggested approach provides the industry with a straightforward methodology in risk management. As many researchers maintained that front-end planning efforts are crucial in achieving the successful outcome in building projects, the new method for risk-based estimation can Improve the cost performance as well as enhance the fulfillment in terms of business sustainability.

• Journal of Construction Engineering and Project Management
• /
• 제4권3호
• /
• pp.13-20
• /
• 2014

Estimating time and cost is an important mission in the early phase of a construction project, especially in feasibility study. It provides a foundation for making decision whether or not the project is performed on schedule and within budget. Thus, reliability of this estimate plays a key role in measuring the success of a project. This study was carried out to investigate the time-cost relationship in building construction projects in Bangladesh. The mathematical equation used in this study is based on Bromilow's equation. The research data were collected from sixty-three completed building projects through questionnaire survey. Type of clients, type of projects, and tender methods are the project characteristics considered in this study. The results of analysis indicated that the Bromilow's time-cost (BTC) models developed for each project characteristic are appropriate due to quite high coefficient of determination and relatively small mean percent errors. Among them, the forecasted model for time and cost according to tender methods is the best fit model. It is concluded that the BTC model could be applied in building construction project to predict its time and cost in Bangladesh. Four different regression models were also developed in this study. The results of BTC model between some selected countries were compared to gain the comprehensive view.

• 국제학술발표논문집
• /
• The 7th International Conference on Construction Engineering and Project Management Summit Forum on Sustainable Construction and Management
• /
• pp.133-137
• /
• 2017

Nuclear power plants in Korea are usually built based on a duplicated model; so the project cost data of the preceding unit can be used as reference when estimating the project cost for the succeeding unit. However, since the contracting method is oriented towards the price, empirical factors such as making top-down estimations using the reverse calculation method based on the completion cost of the preceding unit is dominant. In order to develop a project cost database to resolve such problems, the detailed cost boundary of the project cost data must be categorized by project and by system. This study proposes a method to connect the code of account with the base quantities and the IAEA account, and proposes a database structure for the development of a project cost estimation system. The estimation system developed in the future is expected to utilize the proposed project cost data structure.