• Korean Journal of Construction Engineering and Management
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• v.23 no.6
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• pp.101-110
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• 2022

Recently, the global construction market is expected to grow at an annual average of 4.8% by 2025 and the risk of overseas construction is also expected to increase accordingly. In particular, domestic construction companies intensively participated in the EPC(Engineering, Procurement, Construction)/Turnkey project, but as a result of failing to respond to contractual risks, they have suffered losses of trillions of won in overseas business since 2013. Nevertheless, there have been not many studies on the derivation of EPC/Turnkey's contractual key risk sub-clauses. Therefore, in this study, the key risk sub-clauses were studied for the conditions of the 2017 Silver Book contract issued by the International Consulting Engineering Federation(FIDIC). To this end, 30 experts with more than 10 years of experience in international construction contracts were formed as a panel to conduct a Delphi survey on 170 sub-clauses of 21 clauses of FIDIC Silver Book to derive 62 main risk sub-clauses. In addition, the RPN(Risk Priority Number) was finally calculated using the FMEA(Failure Mode and Effect Analysis) technique, and 25 key risk sub-clauses within the Critical Risk range were derived. Through the results of this study, the practical point of view is able to refer to the contract provisions to be carefully reviewed at the bidding and contract signing stage in overseas construction projects. From an academic point of view, it provides direction and basic knowledge of how to study the contract fields used in overseas construction EPC/Turnkey projects.

• Korean Journal of Construction Engineering and Management
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• v.6 no.5 s.27
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• pp.157-165
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• 2005

Recently, the term 'Provisional Sum(PS)' has been used in domestic public construction projects especially for civil works. Nevertheless, the guideline for PS has not been clearly stipulated in contract documents or construction-related laws. Due to these ambiguous contract situations, disputes between owners and contractors are surely expected to settle down PS in construction projects. This paper focused on suggesting a guideline to settle down PS in these ambiguous contract situations. The guideline suggested in the paper is expected to be used as a reasonable method to settle down PS avoiding nonproductive disputes about PS in construction projects

• Proceedings of the Korean Society of Marine Engineers Conference
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• 2005.11a
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• pp.92-93
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• 2005

A contract for the shipbuilding is usually a complicated and involves statement of rights, obligations and responsibilities which each party agrees vis-a vis the other. The ultimate purpose of the contract is the sale and transfer of the finished ship by the builder to the buyer. Contracts for the construction and sale of ships are categorized as contracts for the sale of goods under English, United States, Germany and some countries law. On the other hand, The shipbuilding contract may be classified, not as a contract of sale but as a contract for work and materials under Korea, Japan and some countries law. Especially, most of countries are now well settled with regard to liability of a manufacturer in tort for physical injury and on the other for pure economic loss to remote owners of chattels. Where there is either a breach of contractual warranty or an implied warranty, there may be admiralty jurisdiction, depending once again on the situs of the event and its relationship to traditional maritime activity. Contract principles will be applied to the first type of warranty and tort principles will be applied to the second. First of all, this thesis is dealt with the contents of contract under English Law. Secondly, this thesis is analysed into the liability of shipbuilder in Products Liability under English, American and Korean Law comparisons. In conclusion, the author tries to give some suggestions as countermeasures of Products Liability to the shipbuilder in Korea.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.48
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• pp.127-155
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• 2010

The international transactions of capital goods such as industrial plant exports, overseas constructions, and shipbuilding exports, are so huge that tremendous amount of funds are required, and that most of the loans are long-term credits of over five years. In the export of huge capital goods, financing is more crucial than technology itself. Some of the importing countries are developing ones that are politically and economically unstable. Therefore the financing mechanism for these transactions is conclusive in winning these projects. Global financial market instability caused by US sub-prime mortgage financial crisis expanded all over the world, and the international transactions have been decreased due to global credit crisis. This indicates how much influential the financing market is in international transactions. The financing schemes are classified into supplier credit and buyer credit by who provides the financing. A supplier credit is a credit extended by an exporter(seller) to an importer(buyer) as part of an export contract. Cover for this transaction may be extended by an export credit agency('ECA') to the exporter. In a sales contract a seller shall provide fund required to manufacture goods, and in a construction contract a contractor shall provide fund required to complete a construction. A buyer credit is an arrangement in which an exporter enters into a contract with an importer, which is financed by means of a loan agreement A Comparative Study on a Supplier Credit and a Buyer Credit in International Transactions of Capital Goods 155 where the borrower is the importer. In a sales contract a buyer shall provide fund required to manufacture and procure the goods, and in a construction contract an owner shall provide fund required to complete a construction. Therefore an exporter is paid on progressive payment method. A supplier credit and a buyer credit have their own advantages and disadvantages in the respect of the parties respectively. These two financing methods are selectively used considering financing conditions such as funding cost, importer's and/or exporter's financial conditions, importing country's political risk.

• Korean Journal of Construction Engineering and Management
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• v.2 no.4 s.8
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• pp.69-79
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• 2001

Characteristics of Contactor's Defect Liability was too many discussed. But it's not clearly defined yet. Because recent Government Construction Projects are very complex and executed through long time, too many conflicts were appeared related to Contactor's Defect Liability. Therefore to analyse and to resolve the conflicts legal aspects of Contactor's Defect Liability stated in Civil Law and Government Contract Act was systematically compared. The result of this research is as follows : (1) Characteristic of Contactor's Defect must be regarded as a breach of Contract and be an incomplete contract implementation. (2) To decide the range of Damage, Characteristic of Defect must be regarded. (3) Contactor's Defect Liability must be effectual from the day of delivery. (4) Retainage must be added to secure the completion during the Contract Period and Defect Repairing Liability must be omitted in the Contract performance Security.

• 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.

• Korean Journal of Construction Engineering and Management
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• v.9 no.4
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• pp.66-74
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• 2008

Warranty contracting for pavements construction has been widely used in Europeans countries, Japan, and the U.S. and the benefits of warranty contract has been proven. This research investigated the European, U.S., and Japanese warranty contract policies and compared pros and cons. The most appropriate warranty contract policy solution is developed to fit in the Korean construction industry culture. Three main conclusions have been developed in this study: (1) performance specifications should be developed; (2) the systematic method is required to estimate the appropriate costs of performance bond and warranty period, etc.; and (3) short and long term plans for adopting performance warranty contract in Korea are suggested.

• Korean Journal of Construction Engineering and Management
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• v.6 no.1 s.23
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• pp.162-168
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• 2005

Index adjusted ratio method has been widely utilized in public construction sector for contract sum adjustment by price fluctuation. In this method, the Production Price Index are used for the base ratio, but the PPI can't reflect the character of construction project in respect of the selected items and weight. In this research we prove the problem of using the index adjusted ration method in contact sum adjustment by price fluctuation, and improve it by using the construction cost index, which has the property of construction project. And we figure out the efficiency of the proposed method by case study.

• Korean Journal of Construction Engineering and Management
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• v.13 no.3
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• pp.122-130
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• 2012

Currently, TK(Turn-key) projects have been implemented, the projects on TK basis still have shown several problems rather than its own merits as a bidding method. Increasing the number of claims being occurred during construction process of the projects is reality because of unclear notice of tender documents and conditions of the contract, design review system, and decision process of the qualified bidder. To establish desirable TK projects in domestic market, not only should resonable alternatives for carrying out design review system and selecting the bid winner be set up, but also proper standards for reforming irrational system of contract, bid, and notice of tender related to TK projects. This study is intended to reduce the number of claims and implement efficient projects of apartment construction on TK basis by identifying potential problems through analysis of claim examples of TK projects which have difficulties of revising contract agreement such as drawings and suggesting improvement methods for contract conditions and notice of tender docuements.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.273-276
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• 2007

Construction work has character which claim or dispute is frequently raised. This means that each construction project has it's own contract documents due to the difference of environment and time. Therefore to overcome the associated risks, domestic contract rules and acts should be reformed. Several well-recognized contract documents developed by FIDIC, AlA, CMAA and general conditions of the contract is investigated and analyzed. Based on the research outcomes the direction of reformation is suggested.