• Title/Summary/Keyword: Turn-key based contract

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An Effective Analysis and Management of Technical Risk to Turn-key based Plant Construction Contracts using Systems Engineering (시스템엔지니어링을 이용한 턴키방식 플랜트 건설계약의 기술적 위험요인 효과적 분석 및 관리)

  • Hong, Dae Geun;Byun, Hee Chul;Suh, Suk-Hwan
    • Journal of the Korean Society of Systems Engineering
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    • v.10 no.2
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    • pp.59-69
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    • 2014
  • In the bidding stage of turn-key based plant construction contracts, owners provide design and performance basis for contractors instead of giving design drawing. To win the bid for a plant construction, the contractors should be obliged to satisfy and ensure owners'requirements such as design and performance basis in a plant construction project, In other words, owners imposes technical risk of the design to the contractors by specifying responsibility for the analysis and verification of the plant construction. Thus, it is very important that contracters make accurate and realistic basic design plan in a short period of time. To deal with such a situation, we propose a systems engineering approach for the analysis and management of the technical risk. Specifically, we first: 1) Analyzes technical risk related with the plant design information for the bidders, followed by 2) Developing stakeholder requirements for the basic engineering design, and 3) System requirements for dealing with technical risk. Also, in this paper, we proposed converting method from MOE(Measure of Effectiveness) to MOP(Measure of Performance) in the risk analysis. To show the effectiveness of the proposed method, we carried out a case study.

Improvement of Turn-key Contract System through the Analysis of Present Ordering Condition in Civil Engineering Projects (토목공사 수주현황 분석을 통한 턴키${\cdot}$대안입찰제도의 문제점 및 개선방안 연구)

  • Lee Yang-Kyoo;Kang Leen-Seok;Park Jong-Hyuk;Jeon Seong-Chul
    • Journal of the Korean Society for Railway
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    • v.8 no.5
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    • pp.460-469
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    • 2005
  • Turnkey contract system is an effective ordering system for the ordering organizations that technical engineers are insufficient for their construction projects. It is possible to reduce project duration and to improve project quality in an integrated contract system between design and construction. However, owners can have a difficulty caused from unitary responsibility system. This study analyzes present situation and problems of turnkey contract system including railway projects. The result includes various methods for improving the system based on the analysis of bid price and selection procedure.

Working Design Management of the Design Build Projects Using CBR (CBR(Case-Based Reasoning)을 활용한 턴키 공사 실시설계관리 방안)

  • Park Se-Kun;Kim Young-Jae;Kim Kyung-Rai;Shin Dong-Woo
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • autumn
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    • pp.432-437
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    • 2002
  • As the working design process of Turn-Key projects is a basic process for the final contract, this process has lots of business decision to be made. Because such results of business decision can be the basis on contract documents, it is the step which needs a through management for Turn-key project. But in case of domestic construction companies, because those are not organized process of working design process, project manager has had lots of trouble at each process to make the business decision. As a means of settling the problems, this research is initiated. First, working decision management process is identified and generalized by interviews with project managers. Second, cases that actually happened in the project are investigated and categorized. Third, response plan to solve the problems and check lists to prevent the problems are suggested. Finally, the process, cases, response plan, and check list are integrated using CBR for future reuse.

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A Case Study on the Limitations of the Choice of Law caused by Internationally Mandatory Rules in Entering into the Turn-Key Contracts (턴키계약체결시 국제적 강행규정에 의한 준거법 제한에 관한 사례연구 - Clough Engineering Ltd v Oil & Natural Gas Corp Ltd 사건을 중심으로 -)

  • Oh, Won-Suk;Kim, Yong-Il
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.54
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    • pp.145-166
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    • 2012
  • This article examines the limitations of the choice of law caused by Internationally Mandatory Rules in Entering into the Turn-Key Contracts. In June 2007, Clough Engineering, a corporation based in Western Australia, approached the Federal Court of Australia seeking injunctive relief and leave to commence proceedings against an entity located outside Australia, the Oil & Natural Gas Corp of India (ONGC). Clough had contracted with ONGC to provide a range of services in relation to the construction of gas and oil wells off the coast of India. The contract was governed by Indian law, and included a clause by which the parties agreed to submit their disputes to arbitration. Yet the Federal Court assumed jurisdiction over the dispute, principally because Clough had framed its claim as a plea for relief for contraventions of Australia's Trade Practices Act 1974. The result of this cases that it is possible for an arbitral tribunal to hear a claim made under the Trade Practices Act even if that claim arises "in connection with"a contract the proper law of which is not the law of Australia. However, in Transfield Philippines Inc v Pacific Hydro Ltd, the turnkey contract included a choice of law provision, selecting the law of the Philippines, and a clause providing that all disputes arising out of or in connection with the agreement were to be arbitrated under the ICC Rules, with the seat in Singapore. Hearings were in fact conducted in Melbourne, Australia, although all awards were published in Singapore. The result of this cases that it would not be appropriate for an Australian court to adjudicate claims for misrepresentation under Australian statutes dealing with misleading and deceptive conduct, once the arbitral tribunal had determined, applying appropriate choice of law rules, that such claims are governed by the law of the Philippines. To do so would lead to a multiplicity of proceedings, usurp the jurisdiction of the tribunal and deny the intention of the parties as expressed by them in the arbitration agreement. In short, the Internationally Mandatory Rules as an active part of public order create limitation of party autonomy in choice of law rules in a different way. The court is fully entitled to refuse to use those rules of law applicable on the contract which are in the contradiction to the internationally mandatory rules of law of the forum. And the court may give an effect to those Internationally Mandatory Rules that form a part of a law of foreign country when deciding about applicability of certain rules of applicable law.

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Comparison of Cost Performance for Delivery Methods on Public Construction Projects (공공 건설공사 발주방식에 따른 비용성과 비교연구)

  • Lee, Yoo Sub;Kang, Tai Kyung;Shin, Eun Young;Park, Wonyoung
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.33 no.6
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    • pp.2575-2582
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    • 2013
  • In the delivery systems for public construction works, design-build methods such as turn-key and alternative have contributed to improving the quality of structures and developing the construction technology. However, it is pointed out that construction based on a design-build method is likely to waste a budget due to its higher contract price than construction based on a design-bid-build method. Other issues such as contract monopoly, bid rigging and deliberation irregularity in design-build. Since there are not much works have been accomplished to comparatively analyze the actual performance and effect based on delivery methods, discussing and judging the performance and effect of each deliver method with limited information could lead to an error. Thus, this study by extensively investigates the actual project cost data, ranging from contract price to the construction cost of the public construction works and comparatively analyzed the characteristics of each delivery method about cost structure and fluctuation trend. This work is expected to assist stake-holders in properly understanding delivery systems for public construction works and promoting their efficient management.

Business Process Model for Progress Phase of Design-Build Project (설계시공일괄방식 사업의 진행단계별 업무프로세스 모델)

  • Song, Young-Woong;Son, Bo-Sik;Chun, Jae-Youl;Choi, Yoon-Ki
    • Korean Journal of Construction Engineering and Management
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    • v.10 no.4
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    • pp.38-49
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    • 2009
  • In public project market, design-build projects have been increased because of market trend change which enables technical competition. In this condition, its importance is also getting important. Generally, life cycle of design-build project consists of planning, preliminary design, procurement, contract, detail design, start of construction, construction, end of construction, and evaluation. From contractor's viewpoint, it has problems such as difficulties in project management and information sharing because of frequent change of charged division. To solve these problems, it is desirable to change from function-based management system to process-based management system. The purpose of this study is to develop management process model for design-build project by progress phases. This study analyzed main conflicts and decision making factors of each stage in design-build projects, then systemized management subjects' responsibilities and management points' change. And also this study defined the key information that is the key point by project characteristics and progress phases. Based on this analysis, this study did business process modeling from planning stage to construction design check stage. At last, we proposed the way to manage business process by design-build project progress.