• Proceeding of Spring/Autumn Annual Conference of KHA
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• 2009.04a
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• pp.211-216
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• 2009

Bidding systems in the domestic public construction work have been amended many times since the lowest-bidding system was implemented in 1951. However, this hasn't had much success. Competition in technical development among companies has declined as the contracts for buildings are given to company which submits the lowest price without considering traits of projects. In addition, as the construction market turns to the limitless competition system due to FTA(Free Trade Agreement), advanced techniques are needed to promote the national competitive power. Considering the needs of the times, Korean government announced that "Best Value Contract (Design-Bid-Build)" and "Bridging Contracts (Design-Build)" are included to 4 existing bidding systems in October 2007. Thus this study aims to suggest devised the evaluation criteria including major items for evaluating bidders, in order to establish and revitalize the best-value bid system successfully.

• Korean Journal of Construction Engineering and Management
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• v.6 no.5 s.27
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• pp.102-109
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• 2005

The contract price of successful bidders in domestic public work projects has dropped significantly under lowest bidding process. Furthermore, compared to the U.S. and Japan, the bids are substantially lower. The increasing trend for domestic construction companies to bid projects without considering markup or expected profit, with the purpose of gaining experience for future similar work, has contributed to the overall dumping in bid prices. The government has implemented controls in hopes of reducing the price dropping trend but these have yet to work in the market. This study determines the level of significance of the contract price of the successful bidder in domestic public works projects and identifies factors that cause bid-dropping by comparing to those of the US and Japan. By mirroring advance countries' rules and regulations to prevent an abnormally low bidder, recommendation are provided to keep unrealistically low bidders from winning the work.

• Korean Journal of Construction Engineering and Management
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• v.17 no.5
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• pp.108-119
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• 2016

Since the introduction of the converted accident rate in Pre-Qualification(PQ) process in 1992, the safety evaluation system has contributed to a reduction of construction accidents and development of the safety management system in public construction projects. As the comprehensive evaluation method the government plans to introduce includes the indicators 'accident rate' and 'death rate per 10,000 workers', the influences on the safety evaluation in the bidding process would be broader in public sector construction projects. However, the current safety evaluation system is operated by different estimating standards in the bidding process. At this point, a study of improvement on the safety evaluation index is required to review its current conditions and to propose its efficient operating method. Therefore, the purpose of this study is to analyze problems of the current safety evaluation system through the questionnaire survey on the qualified workers in construction safety management and to propose an improvement plan for the problems noticed. Our results suggest the standards of the unified process for the safety evaluation index, the size of construction firms needed for accident rate estimation, and the improvement plan for unreported accidents. The proposed improvement plan enables the reasonable estimation and efficient operation of the safety evaluation index, and further, it would contribute to reducing construction accidents through the activation of voluntary safety management by construction firms.

• Korean Journal of Construction Engineering and Management
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• v.22 no.4
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• pp.20-28
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• 2021

The Domestic Construction Industry is in the process of changing from a one-sided production method centered on the contractor to a production method in which the order and the contractor can collaborate. Depending on the delivery method, the bid/success method, the contract method, and the degree of business involvement of the order may also vary. In this thesis, in order to introduce 'Construction Management at Risk' suitable for the domestic environment, domestic and foreign institutional analysis, bid process analysis, contract fulfillment and management analysis, post management analysis, and related laws and regulations for legalization In order to suggest a plan for the efficient operation of the system, a system and case analysis of domestic and international construction responsibility type construction project management was conducted. 'Construction Responsible Construction Project Management' defined in the Framework Act on the Construction Industry is divided into the main contract transfer contract, which is a service contract performing pre-con work, and the main contract, which is construction project management and construction contract. Therefore 'Construction Management at Risk' should be regarded as one of the ordering methods rather than a successful bid system, as in the case of overseas, and legalization as a bidding system equivalent to design/construction batch bid and technology proposal is necessary for introduction. In order to introduce 'Construction Management at Risk' suitable for the domestic environment, domestic and foreign institutional analysis, bidding process analysis, contract fulfillment and management analysis, and follow-up management analysis are conducted. A method for efficient operation was suggested so that it can be applied in the domestic market while maintaining the original merits of this system.

• Korean Journal of Construction Engineering and Management
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• v.7 no.5
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• pp.167-176
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• 2006

It was found that Korean Standard of Estimate which has been used as the only basis of cost estimate of public construction projects had some side effects such as jerry-build construction and over-estimation because it failed to reflect the current price and the state-of-the-art construction methods in a changing construction environment. Therefore, the government decided to gradually introduce historical construction cost into cost estimate of public construction projects from 2004. This paper presents analytic criteria and a process model for deducing more current and reasonable historical construction cost for contract items from not only previous contract prices but also all of the other bid prices that were not contracted. The procedure of estimating actual unit cost proposed in this paper focuses on the removal of abnormal values including strategically too low or high prices and the time correction. In addition, basic research is conducted for the correction of actual unit cost through the analysis of fluctuation of bid price depending on bidding types and rates of successful bid. It is anticipated that the effective use of the proposed process model for estimating actual unit cost would make the cost estimation more current and reasonable.

• Korean Journal of Construction Engineering and Management
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• v.14 no.6
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• pp.3-13
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• 2013

The converted accident rates that included in Pre-Qualification (PQ) are to evaluate the results of accidents which have occurred. Therefore, it is demanded the development of proactive evaluation contents to evaluate the safety management activities and efforts on construction companies. The purpose of this study is to provide basic data for the establishment of proactive evaluation contents at public construction project in Korea through the collected and analyzed the PQ documentation applied by public agencies in Los Angeles, USA. The results indicated that diverse reactive safety evaluations are implemented to examine accidents which occurred in past projects such as occupational health insurance, regulation violation. And also, when the accidents occurred, it is evaluated the proactive safety management actions such as safety education, accident prevention programs, and safety management plans are reflected on the evaluation. Thus, if proactive safety related evaluation contents are established and reflected in PQ examinations together with diverse existing reactive safety evaluations considering converted accident rates, not only the existing function of converted accident rates can be reinforced but also businesses' active safety management activities can be induced and decreases in the construction industry's accident rate can be expected.

• Korean Journal of Construction Engineering and Management
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• v.7 no.5
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• pp.159-166
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• 2006

It was found that Korean Standard of Estimate which has been used as the only basis of cost estimate of public construction projects had some side effects such as jerry-build construction and over-estimation because it failed to reflect the current price and the state-of-the-art construction methods in a changing construction environment. Therefore, the government decided to gradually introduce historical construction cost into cost estimate of public construction projects from 2004. This paper presents analytic criteria and a process model for deducing more current and reasonable historical construction cost for contract items from not only previous contract prices but also all of the other bid prices that were not contracted. The procedure of estimating actual unit cost proposed in this paper focuses on the removal of abnormal values including strategically too low or high prices and the time correction. In addition, basic research is conducted for the correction of actual unit cost through the analysis of fluctuation of bid price depending on bidding types and rates of successful bid. It is anticipated that the effective use of the proposed process model for estimating actual unit cost would make the cost estimation more current and reasonable.

• Journal of the Korea Institute of Building Construction
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• v.15 no.1
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• pp.89-97
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• 2015

In bidding processes conducted by government agencies, local governments or public agencies, budget prices are critical to both ordering bodies and bidders since budget prices are bases for selecting a successful bidder. Since a high budget price goes against ordering bodies and a low one goes against bidders, most ordering bodies adopt a system using multiple preliminary prices for determining a budget price to ensure fair and transparent manners. Discussed are how budget prices change depending on the methods of sampling 15 preliminary prices and the methods of sampling 4 out of 15 prices. Computer simulation is conducted to analyze budget prices for various methods to determine multiple preliminary prices. It is more likely for budget prices to be close to base prices when splitting a range of generating preliminary prices into 15 intervals and taking 4 preliminary prices from 15 intervals than when taking 4 preliminary prices from a whole range. In cases when splitting a range of generating preliminary prices, if we take 2 preliminary prices out of intervals above 100% and take 2 out of intervals below 100%, the expected budget prices are equal to a base price and the standard deviations are about half in comparison with those when taking 4 out of 15 intervals.

• Korean Journal of Construction Engineering and Management
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• v.9 no.2
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• pp.136-145
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• 2008

Recently the Ministry of Finance and Economy of Korea launched two new project delivery systems called "Best Value Contract (Design-Bid-Build)" and "Bridging Contract (Design-Build)" in October of 2007 by revising enforcement ordinances of "Act on Contracts to Which the State is a Party". These project delivery systems require the bidders to submit technical proposal adjusted to the project characteristics and objectives for selecting the contractor by evaluating technical proposals. This research aimed to suggest guideline to effectively operate the project delivery systems described above. To reach the goal of the research, the framework of the operation model was developed, which includes the four categories: the standard bidding process, the technical proposal requirements, the technical proposal evaluation criteria, and the award methods. The contents of the four categories above were fulfilled throughout conferring with the advisory experts. In particular, the award methods, which are the important decision-making factor in the perspective of the owner, consist of four types: Low Bid-Fully Qualified, Weighted Criteria, Adjusted Bid, and Adjusted Score. The quantitative features and application criteria of these four types of award methods were suggested throughout the simulation using the virtual case.

• International conference on construction engineering and project management
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• 2022.06a
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• pp.238-244
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• 2022

Civil projects are associated with many uncertainties because they involve a long duration, many resources, a large area, and many supply chains. Therefore, the price of a civil project is not simply proportional to the quantity and unit price of the item but has a variable value, including uncertainty risk. This study investigates the influence of the uncertainty factors in the pre-bid clarification document on bid price formation during the project bidding phase. To this end, civil projects from the California Department of Transportation (Caltrans) were used as research data. This study randomly selected fifty sample data from each of twelve counties from 2008-to 2020: six hundred. The authors observed that each project sample had 0 to n query cases due to uncertainty. Then, this study examined the project uncertainty cases and categorized them into the following four uncertainty factors: 'conflict' (UF1), 'impossibility' (UF2), 'lack' (UF3), and 'missing' (UF4). Under the extracting process, the cases are classified into four uncertainty factors. With the project not containing any uncertainty factors as a control group, the project containing these uncertainty factors was designated as an experimental group. After comparing the bidder's price, the experimental group's bid price was higher than the control group's. This result suggests that uncertainty factors in bid documents induce bidders to set a high bid price as a defense against uncertainty.