• Journal of Arbitration Studies
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• v.15 no.3
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• pp.303-324
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• 2005

Turnkey project in construction which accounts for about $10\%$ of the total annual construction orders in the nation is expected to grow in size as an effort to strengthen international competitiveness and improve quality of construction work. However, problems of turnkey project in construction raise concern for many possible cases of possible claims. Based on the understanding that bidding guidelines which plays a critical role in turnkey project in construction actually contain some unequal clauses and causes for problems which undermine development of turnkey construction and further create possible cases of claims, the paper aims to identify and analyze the unequal clauses and problems contained in the guidelines in order to make suggestions for improvement. Among all the turnkey construction orders that has been placed since 2000 when domestic turnkey project in construction became relatively formulated, 13 constructions costing more than 50 billion won were selected for this study since their construction scale were large enough that the bidding guidelines for them were regarded as containing little difference among one another. In order to enhance construction technology and to prevent claims while trying to achieve the original purpose of Turnkey system, the parties involved in or schedule to take part in Turnkey project including ordering institution, Construction Company and Design Company should make an effort to have more reasonable bidding guidelines drawn up.

• 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.

• IE interfaces
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• v.11 no.3
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• pp.167-180
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• 1998

This study is concerned with the development of a project management system for the turnkey-based plant project, which will help the site manager to plan, control, and report the project progress. This system has been developed as one of the modules of the integrated information system for the H Heavy Industry Co. and is composed of five subsystems; project information system, drawing-material management system, process management system, project progress report system. A/S management system. it also integrates commercial project management package in order to schedule the project activities and report the project progress to the owner. The main purpose of the system is to provide project information, including drawing, material, and progress, to the site manger in the real time and to accumulate site know-how for the turnkey-based plant project.

• Korean Journal of Construction Engineering and Management
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• v.2 no.3 s.7
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• pp.58-66
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• 2001

Turnkey project, also called Design-Build project, has been expanding and diversifying its business into the Korean market. However, it has been experiencing numerous difficulties due to a large number of change orders on the public turnkey project. Change order during the construction phase impact on time deliveries, budget and quality on a turnkey project. In preparation for this, the government has to improve the awarding procedure and general conditions for turnkey projects. Contractors should also cooperate with their co-working partners and establish a standardized procedure, which provides change order control for efficient implementation on the construction site.

• Korean Journal of Construction Engineering and Management
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• v.6 no.1 s.23
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• pp.205-211
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• 2005

Turnkey projects accounting for some $10\%$ of the total volume of the projects in the domestic market have been often implemented without the process of full-scale review or study because of clients' lack of expert and expertise. Moreover, many projects have been executed under the terms and conditions of the contact which were found to be unilaterally in favor of the clients. The study, as part of effects to mitigate the claims that would possibly be caused by the potential problems with the typical turnkey projects, were intended to identify the elements of the claims virtually being occurred at the construction sites, and then analyze the degree of influence on the project so as to be able to incorporate the outcome into the plan at the working-levels. As a result of experts' review, through the survey, of the elements once extracted, those having relatively higher degrees of influence on turnkey projects were determined, and the investigation aimed at estimating the amount of claims in terms of value were conducted to eventually identify, evaluate and verify the elements that had affected the Project together with the degree of influence.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2004.11a
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• pp.197-202
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• 2004

Turnkey contract system is an effective ordering system for the organizations that technical engineers are insufficient in 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 in our country. The results includes various methods for improving the system based on the analysis of bid price nd selection procedure.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.18
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• pp.189-218
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• 2002

The EPC/Turnkey Contract goes to the extreme in allocating risks to the contractor and depending on the types of project, this may be regarded as unacceptable. It has also gone to the extreme in the extent to which the contractor is responsible for the specification and design of the Works. The employer is not responsible for correctness of any information provided by him nor for correctness of any specification or other matter included in the Employer's Requirements, except the definition of the intended purpose and criteria for testing and performance. With such conditions it is surprising that the employer is entitled to interfere in the contractors performance to an extent that is close to what is norm for a construction contract with employer design and with normal risk allocation. The combination of risk allocation and inappropriate administrative provisions makes the EPC/Turnkey Contract a document that will meet severe resistance from contractors. It is also likely that employers will see the risks and difficulties from their own perspective. It is a fiction that the EPC/Turnkey Contract will give the employer a contact with a certainty of final price and completion date. It is not a fiction that the EPC/Turnkey Contract carries many seeds for disputes between the parties. The Orange Book has become an accepted document even if it clearly contains some weaknesses. Some of these have been corrected in the Plant Contract. In my opinion FIDIC should let users become more familiar with the Plant Contract as a follow up to the Orange Book.

• 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.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.718-719
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• 2015

As a recent global trend, the majority of plant projects are delivered through EPC or EPC-turnkey contracts, where a contractor's liability is more complicated because of the mega size scale and financing method. Previous researches have been lacking a practical usability for project members for liabilities of contracts. Those were focused on solving the claims or schedule calculation issues only. The objective of the present study was to develop a validation process for LDs (liquidated damages) in contractor's liabilities with various case studies and expert judgments. As summarized in this paper, the processes and tools were developed with project life cycle process. The project preparation phase includes 3 step check lists to determine the Go or No-go for projects. In progress phase, contractors should focus on the response strategies for claims with liabilities. The study concludes that those developed processes and tools will help to manage risk of LDs for the contractors in the overseas projects.

• Journal of the Korean Institute of Landscape Architecture
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• v.35 no.5
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• pp.16-28
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• 2007

In this study, the implications for landscape architecture in the restoration Project of Cheonggyecheon will be shown through the analysis of factors for landscape architect scheme modification. The method of study consists of theoretical study, analysis of the plan and design of landscape architecture of the restoration project of Cheonggyecheon, and deduction of implications thereof. The controversial feints included the many difficulties in realizing the productive design of landscape architecture due to the selective collecting of public opinion and the problems of settling the complications, the design limit of the turnkey and MA systems, the lack of hydraulic knowledge and technology and the shortage of vegetation monitoring data and experimental materials. The alternative proposals are as follows: 1) there should be agreement between the government organization and the civil group, 2) in the turnkey bidding for the river restoration projects, the river restoration design based on the volume divided into some parts should be reconsidered in order to maintain consistency in the total design, 3) in order to maintain consistency in the planning policies, MA designs should also be introduced and applied from the first stage of the project through its completion, and 4) data such as the safe water level in case of flooding for the facilities and the vegetation and data in connection with the ecological restoration of river should be accumulated. If these controversies are not settled effectively, the river restoration project will be delayed due to complications with the citizens and wasted time and effort will result from the frequent design changes. In addition, landscape architecture in this kind of restoration project is bound to decrease in the future due to frequent changes in the hydraulic-centered design.