• Title/Summary/Keyword: Project cost

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Sources of Cost Saving Opportunities in Highway Construction Quality Assurance Practices

  • Uddin, Mohammad Moin;Newland, James
    • Journal of Construction Engineering and Project Management
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    • v.8 no.1
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    • pp.1-9
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    • 2018
  • US transportation agencies are dealing with shrinking budgets, limited work forces, and deteriorating infrastructure. In order to cope with funding uncertainty, state highway agencies are now looking into their own organizations and identifying programs, practices, and processes that have potential for cost saving. A quality assurance (QA) program is an integral part of highway construction and ensures a project's contracted level of quality. The cost of quality (conforming and nonconforming) can constitute a sizable part of total construction cost. As the quality assurance programs evolved, various practices and processes were developed over time and later adopted by state highway agencies. These practices and processes include different QA standards and specifications, varying testing methods, central testing lab vs. on site testing, performance based vs. prescribed quality assurance practices, implementation of innovative quality assurance practices, etc. Therefore, there is an opportunity to assess different QA strategies and recommend those practices that are effective and cost efficient. A national survey was conducted by the authors, which provided a detailed mapping of various QA practices and processes used as part of QA programs and identified areas where agencies can focus on for cost savings. The survey found that QA sampling and testing plans, optimization of sampling plans, optimization of QA standards and specifications, and implementation of innovative test methods and processes are the main areas the agencies should focus to lean the current QA programs.

Cost Estimation and Validation based on Natural Language Requirement Specifications

  • So Young Moon;R. Young Chul Kim
    • International Journal of Internet, Broadcasting and Communication
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    • v.15 no.2
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    • pp.218-226
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    • 2023
  • In Korea, we still use function point based cost estimations for software size and cost of a project. The current problem is that we make difficultly calculating function points with requirements and also have less accurate. That is, it is difficult for non-experts to analyze requirements and calculate function point values with them, and even experts often derive different function points. In addition, all stakeholders strongly make the validity and accuracy of the function point values of the project before /after the development is completed. There are methods for performing function point analysis using source code [1][2][3][4] and some researchers [5][6][7] attempt empirical verification of function points about the estimated cost. There is no research on automatic cost validation with source code after the final development is completed. In this paper, we propose automatically how to calculate Function Points based on natural language requirements before development and prove FP calculation based on the final source code after development. We expect validation by comparing the function scores calculated by forward engineering and reverse engineering methods.

A Study on the Current Status and Challenge of Core Project in Urban Regeneration -Focused on the Type of Central Commercial District- (도시재생사업에서 핵심사업의 추진 현황과 과제 -중심시가지형 사업 추진 사례를 중심으로-)

  • Kim, Young-Hwan
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.22 no.2
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    • pp.819-828
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    • 2021
  • In urban regeneration projects, the core projects define the characteristics of the project site and contribute to the highest project cost and drive the project forward. The purpose of this study was to identify the current status and characteristics of the project as a priming project for urban regeneration and to seek desirable alternatives in the future project process. For this purpose, the case of urban regeneration projects in the Chungcheong region was targeted. The results showed that the core projects for each case consisted mainly of projects to develop physical facilities on a relatively large scale. Securing large-scale complex base space and constructing public parking lots are planned as key projects. In addition, based on the cost composition of the priming project, the core project accounted for approximately 80 % of the total project, and the project cost between linked projects does not appear to be relatively well linked in both public and private investment sectors. These findings are expected to help promote substantial urban regeneration projects and enhance efficiency by using them as basic data for urban regeneration projects in the future.

A study on the relationship between cost fluctuation and cost elements -focused on defense R&D project- (원가변동과 원가 비목 간 영향력에 관한 연구 -국방연구개발사업을 중심으로-)

  • Kang, Kyung-Mok
    • Journal of the Korea Convergence Society
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    • v.9 no.3
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    • pp.223-230
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    • 2018
  • This study analyzes the cost fluctuation between cost in contract stage and cost in adjustment stage in defense R&D project. This research shows that certain costs hold with the cost fluctuation and their degree of influence. The results of first analysis show that 13 out of 17 costs have a relationship with the cost fluctuation. The estimate of direct labor cost is positive and significant at the 0.1% level(direct labor = 1.022, t = 38.355). The estimate of amount of cost paid to subcontractor is positive and significant at the 1% level(amount paid to subcontractor = 0.942, t = 51.894). The results of second analysis show that all the direct costs have a relationship with the cost fluctuation(The fact that cost system is focused on direct labor cost is a consideration in this analysis). The estimate of direct labor cost is positive and significant at the 0.1% level(direct labor = 2.014, t = 21.787). The estimate of amount of cost paid to subcontractor is positive and significant at the 0.1% level(amount of cost paid to subcontractor = 1.068, t = 15.636). This finding supports a proposal theory that cost system is focused on direct labor cost through actual proof analysis and an inducement that amount of cost paid to subcontractor is a way to reduce the R&D cost.

Earned Value based Construction Project Control System (Earned Value 기반 프로젝트 관리체계 및 사례연구)

  • Lee Yoo-Seob;Cho Chang-Yon;Oh Kyu-Hoan;Kim Jung-Hun
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • autumn
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    • pp.123-130
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    • 2002
  • Project plan and control is a highly skilled task which is vital for business success, and Project control systems are important for successful project execution. To support construction process management effectively, an integrated cost and schedule control function is required to collect quality data in a timely manner and to provide quality historical data for future planning of new projects. In Korea construction industry, the development and implementation cases of a project control system which to efficiently support construction project planning and controlling processes, have been increased to ensure a project success and the profitability of a construction company. To contribute to improving practical effectiveness of a project control system, the paper reviewed and analyzed the current trends and functional features of current project control systems. And it also described the pending issues and their solutions faced on previous project control systems.

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Earned Value based Construction Project Control System (EV기반 공사관리시스템 기능의 비교분석 연구)

  • Lee Yoo-Seob
    • Korean Journal of Construction Engineering and Management
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    • v.5 no.1 s.17
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    • pp.168-174
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    • 2004
  • Project plan and control is a highly skilled task which is vital for business success, and Project control systems are important for successful project execution. To support construction process management effectively, an integrated cost and schedule control function is required to collect quality data in a timely manner and to provide quality historical data for future planning of new projects. In Korea construction industry, the development and implementation cases of a project control system which to efficiently support construction project planning and controlling processes, have been increased to ensure a project success and the profitability of a construction company. To contribute to improving practical effectiveness of a project control system, the paper reviewed and analyzed the current trends and functional features of current project control systems. And it also described the pending issues and their solutions faced on previous project control systems.

Web-based Three-step Project Management Model and Its Software Development

  • Hwang Heung-Suk;Cho Gyu-Sung
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2006.05a
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    • pp.373-378
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    • 2006
  • Recently the technical advances and complexities have generated much of the difficulties in managing the project resources, for both scheduling and costing to accomplish the project in the most efficient manner. The project manager is frequently required to render judgments concerning the schedule and resource adjustments. This research develops an analytical model for a schedule-cost and risk analysis based on visual PERT/CPM. We used a three-step approach: 1) in the first step, a deterministic PERT/CPM model for the critical path and estimating the project time schedule and related resource planning and we developed a heuristic model for crash and stretch out analysis based upon a time-cost trade-off associated with the crash and stretch out of the project. 2) In second step, we developed web-based risk evaluation model for project analysis. Major technologies used for this step are AHP (analytic hierarchy process, fuzzy-AHP, multi-attribute analysis, stochastic network simulation, and web based decision support system. Also we have developed computer programs and have shown the results of sample runs for an R&D project risk analysis. 3) We developed an optimization model for project resource allocation. We used AHP weighted values and optimization methods. Computer implementation for this model is provided based on GUI-Type objective-oriented programming for the users and provided displays of all the inputs and outputs in the form of GUI-Type. The results of this research will provide the project managers with efficient management tools.

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Efficient Application of Multi-Trade Contract Method to Public Construction Project (공공건설사업 직할시공제 적용의 문제점 및 효율적 적용 방안)

  • Chang, Chul-Ki
    • Korean Journal of Construction Engineering and Management
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    • v.14 no.2
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    • pp.35-44
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    • 2013
  • Multi-trade Contract Method was introduced as a means of cutting down construction cost of public housing for low income people. Before a specific project delivery method is applied to large public construction project, it is necessary to discuss all the issues raised up from all the parties in construction industry and all the issues which can impact project performance. Thus the interviews were conducted with industrial professionals from diverse organizations and previous studies were investigated to figure out how this newly introduced project delivery method may impact owner's role and responsibility and project performance in terms of cost, schedule, quality and risk. Under the Multi-trade Contract Method, project owner's management tasks will be highly increased, so it should be checked out if the owner can do its role and responsibility. Public owner's organization also needs to be changed and proper project management procedure and system need to be established. In addition, for efficient application of Multi-trade Contract Method, public owner should consider diverse management approach to deliver the project, and how to select and maintain qualified specialty trades.

Assessing the Impacts of Project Interfaces in Construction Works in Nigeria

  • Okebugwu, Onyinyechi Francesca;Omajeh, Enoch Oghene-Mairo
    • Journal of Construction Engineering and Project Management
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    • v.5 no.1
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    • pp.20-25
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    • 2015
  • Interface management problems inherent in construction projects hamper their successful delivery. Therefore, this study aimed at determining the most important project interfaces in construction works in Nigeria in terms of most significant potential impacts, so that management attention are objectively focused on potential highest impacting project interfaces. From a review of literature, 28 project interfaces management issues were identified and categorized. Structured questionnaires were used to collect data concerning the impact (estimated losses to the project in terms of cost) and probability of occurrence of the identified interfaces. The interfaces were ranked using their computed Matrix Scores (MS). The results reveal that "project-workers interfaces problem manifested in use of inappropriate mixes" is the highest impacting. A ranking of the interface categories also reveal that the interfaces at the execution phase of a project (MS = 1226.79) are those that could result in the highest losses to the project.

Improvement of the Calculation Standard for Prolongation cost of Long-term Continuing Contracts Construction Project (장기계속계약공사의 공기연장 추가간접비 산정 개선방안)

  • Jeong, Kichang;Lee, Jaeseob
    • Korean Journal of Construction Engineering and Management
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    • v.18 no.2
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    • pp.30-37
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    • 2017
  • In Korea, additional indirect costs generated from the time period extension of public construction projects have been studied. Practical claims against such costs are increasing. There are no clear criteria for calculating the delay cost caused by the extension, and thus calculation methods differ across entities. Logical valid calculation methods have also not been researched. Further, there are no Korean studies on the additional indirect cost caused by a suspension in a public construction project on a long-term continuing contract. The purpose of this research is to propose a method of calculating the indirect cost incurred by construction time extension that reflects the characteristics of Korean public construction projects. The cost patterns generated during construction periods were analyzed, and then the current criteria of calculating the indirect costs caused by the extension were examined. Following this, actual conditions and practices in the field were surveyed and the current calculation method was applied to a model case to compare the actual cost and that determined from the current calculation method. Issues with the current method were identified by this comparison. Based on this, this research proposes a method of calculating the total actual cost caused by a suspension in a public construction project that is appropriate for calculating the additional indirect cost generated by a suspension in a public construction project on a long-term continuing contract.