• Journal of Information Technology Services
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• v.3 no.2
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• pp.53-64
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• 2004

For many reasons, SI(Systems Integration) projects can fail. Sometimes, they can result in considerable financial losses to the organizations that undertake them. These projects are abandoned or redirected. However, the cost of project abandonment or redirection can represent a tremendous waste of organizational resources. By managing failure factors carefully, project managers can prevent projects from failing. Types of project failure can be categorized into escalation and de-escalation. Project escalation is that, as projects progress, the project scopes keep increasing. Project de-escalation is that, as projects progress, the project scopes keep decreasing. This study examine relative importance of risk factors that cause project escalation and de-escalation.

• Journal of Information Technology Services
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• v.3 no.2
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• pp.65-84
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• 2004

This research analyzes the causes of delay and resulting additional expenses on the IS project in the public sector, and then proposes some solutions to the problem. Through a field study, the research found that the causes include employer's attitude, the leadership and risk management ability of the project manager, and qualifications of project members. In order to avoid those problems, the project manager should secure various communication channels and good relationship between the employee and the contractor.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2005.11a
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• pp.117-120
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• 2005

The business market of architecture has got a system that controls a deposit according to the price function. This system is written on a law of contract about countries. So the main body of construction has to make a reasonable contract. This study is written about a rate of numerical index on controling a deposit. We tried to fine problems and solutions of labor expenses, instrument costs and material costs which is so big and changable on the construction market Labor expenses are expressed according to the rate of construction scale between direct and indirect cost that applies ability of works. Instrument costs are expressed according to an output method of a unit price annually and a weight allowance of local instrument conditions and use frequence. The last material costs expressed according to a local weight allowance make a decision of the material cost index. They applies locally relative index more than absolute one on what uses the price rate of producers and importations. This solutions are not enough to apply to the real market, so it needs to exam and to be on the market after a feasibility study.

• Journal of Information Technology Applications and Management
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• v.11 no.2
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• pp.1-14
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• 2004

The level of sunk cost and risk-taking theory have been offered as one explanation for the escalation of commitment behavior. This Study attempted to replicate Keil's study in Korea. Keil examined the level of sunk cost associated with the risk propensity and risk perception of decision-makers, and these factors are assessed for cross-cultural robustness using matching laboratory experiments carried out in three countries. The level of sunk cost and the risk perception of decision-makers contributed significantly to their continuous willingness to their project. Moreover, the risk propensity of decision-makers was inversely related to risk perception, and this inverse relationship was significantly more weak in Korea than in Singapore. These results show that the sunk-cost effect exists across cultures, and that the risk-taking behaviors are partially mediated by cultural factors.

• Plant Journal
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• v.7 no.2
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• pp.39-43
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• 2011

Due to the recent uncertainty of market situations such as the escalation of petroleum prices, increased production capacities of plants, limitations of the available EPC (Engineering, Procurement, Construction) contractors, and the increase of raw material prices, EPC contractors have had a tendency to include a higher reserve contingency in the lump-sum turnkey contract price. In order to overcome the changes in the market, the plant project construction industry has started to apply the converted lump-sum turnkey contract in plant construction market. This study was focused to find the associated risks and to analyse the identified risks on recent trend of application of the new contract type, which is the converted lump-sum turnkey contract. It was recognized from the analysis that quality and cost have more high priority risks than other project objectives. This paper also suggests the mitigation plan for identified risks to achieve project objectives appropriate to the converted lump-sum turnkey project from the viewpoint of an EPC contractor keeping transparency with owner.

• International conference on construction engineering and project management
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• 2020.12a
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• pp.323-330
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• 2020

Project delays, cost overruns, and disputes are becoming a norm for the construction industry in Hong Kong. Researchers argue that the inability of traditional contracts to manage risk and associated changes are perhaps the main points of contention. The Institution of Civil Engineers published a new engineering contract (NEC), NEC4 Suite of Contracts in this to facilitate better risk management through collaborative culture in construction projects. NEC aims to increase the chances of project success thought its flexible nature of contracts, 'simple' and 'clearly written' documents and provision for the incentive by adopting a better management approach. This paper focuses on traditional and NEC contracts to compare risk management and change management aspects. Through literature review and preliminary interviews with three industry professionals, the paper is exploring how a change in traditional contracts can recuperate from disaster. Our interviewees in this work have extensive experience in traditional as well as in NEC contracts. The results suggest a proactive risk management provisions in NEC contracts does make a difference to avoid later escalation of issues. Whereas, management of change helps streamline all identified issues through a structured process without going in mediation or litigation. NEC, with its new approach to collaborative working, allows partners to be vigilant, yet gratifying in the project process.

• International conference on construction engineering and project management
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• 2007.03a
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• pp.299-310
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• 2007

When it comes to construction, the UAE leads the way. The UAE's construction industry is valued at US$ 221 billion (about AED 811.73 billion) - the highest in the region. The construction boom has caused a shortage of both manpower and materials, leading to rise in input prices not only in UAE but in the entire region. The prices of materials have reportedly increased more than manpower. Consequently, there has been an escalation in project costs, which have increased by 10-20 per cent since last three years. This paper examines the opportunities and challenges faced by the developers, consultants, contractors and suppliers due to the construction boom at UAE for the last five years. The paper summarizes that inspite of challenges faced, UAE expects the construction and real estate sectors to remain upbeat for the next ten years.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.295-300
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• 2006

In this research, risk factors which can raise project cost are identified in the initial stage and picked out through the decision maker's baseline. And also this probable risks are implemented to the project cash flow to estimate the contingency and to build a risk management system in the level of project. The risks that affect the projects profits were classified in two categories in the risk checklist. Firstly, financial risks derived from the external economic conditions for example exchange rate, escalation, interest rates etc. are analyzed through the stochastic methods, Monte-Carlo Simulation. Secondly, the project individual risks which are come from the project characteristics, for example country risk, clime, owner etc., are evaluated using the utility curve of the decision maker. Finally these risk analysis methods are used to forecast the actual project cash flow and final profit.

• Journal of the Korean Society for Railway
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• v.14 no.2
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• pp.194-202
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• 2011

Most of Orders of Magnitude estimate are based on historical data. This data is converted to the current price using by the cost index method mainly. This method, however, is rarely utilized or only for one-time use due to the lack of data and the complex escalation calculation method. This paper present a typical process on the conceptual investment cost estimation using by Cost Indexes based on the actual case for the Train Control facility of High-speed rail project. The result is expected to serve as both an easy way for Order of Magnitude estimate and a standard guideline for computerized modeling.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.599-602
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• 2007

To enhance the competition of National power, the investment of SOC is an essential factor for infrastructure construction. The capital for SOC is so gigantic and the national finance is limited, engagement of various subject is necessary. So, Government is promoting the private sector to invest capital in SOC development. Nevertheless the increasement of SOC investment, various problems were issued in selection & operation of BTL. Therefore, to raise the probability of success for BTL project, escalation, unification and specialization of BTL affairs, BTL selection process were suggested in this study.