• International conference on construction engineering and project management
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• 2011.02a
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• pp.629-635
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• 2011

Retentions are generally considered to be intended to act as a powerful tool to incentivize contractors/subcontractors to remedy defective work in cases of non-performance. This study attempts to establish the extent to which retentions can be used for this purpose by investigating case law connected with insurance and defective work. One of the significant questions is whether retentions are sufficient to deal with construction defects or value of retentions in the rectification of defects is illusory. The cost to repair a defect may vary depending on a number of components including type, cause, magnitude and the construction stage at which the defect occurs. It is expected that a review of existing cases on defective workmanship will provide an insight on the issues and whether retentions are effective in their intended function. In order to establish their functionality, the study described in this paper investigated 6 construction insurance cases to identify the critical issues and the causes of dispute. It was found that the nature and the cause of defects were different in each case. It was also established that certain defect types not covered by insurance may be covered by retentions - potentially one of the key uses of a retention strategy. It is expected that the findings will assist in forming a view on the quantum of money that may be required paving the way for a first time understanding on a rational basis for setting up retention regime.

• Korean Journal of Construction Engineering and Management
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• v.20 no.1
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• pp.32-40
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• 2019

This study analyzed operating condition and the problems of damage compensation insunace (property insurance) for qualified architect and derived some suggsetions for improvement. The Certified Architects Act requires all building design and construction supervision to buy property insurance. This study proposes following suggestions to solve problems of current architect property insurance. Firstly, we need to increase the insurance purchasing rate of damage compensation insurance for qualified architect. It is necessary to clearly specify the matters concerning the submission of insurance policies by the architects, which is currently carried out by the Minister's official letter, in the form of official announcement. Secondly, proper insured amount should be adjusted. In order to insured substantial compensation capacity, total amount of insurance should be enlarged. Thirdly, the insurance period should be extended to one year after completion of building to allow compensation for accidents due to design negligence. Generally, the design defect can mostly be identified within one year after completion. Fourthly, insurance coverage should be extended. In the long run, it is essential to enlarge the scope of the security not only to property damage but also to human losses. Finally, an accident record sharing system should be established among insurance companies, so that proper insurance premiums or discounts can be made based on the system.

• Korean Business Review
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• v.19 no.1
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• pp.25-34
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• 2006

This research executed research that analyze construction cost and profitability through construction example of direction and subcontracting construction based on common private construction less than 3 billion. The results of this research, is summarized as follows. (1) Analyzed profitability about construction gross and operating profit of direction and subcontracting construction. The construction gross profit rate is 15.2% direction construction, subcontracting construction was analyzed by 1.3% high by 16.5% subcontracting construction, and the operating profit rate is 9.4% direction construction, subcontracting construction was construed by 2.3% high by 11.7% subcontracting construction. (2) Analyzed profitability about operating profit before and after deduction of 4 insurance cost of direction construction. The direction construction operating profit rate is 9.4% before deduction of 4 insurance cost, after deduction was construed that is 7.3% and operating profit rate difference after and before deduction was construed that is 2.1%. Therefore, subcontracting construction (operating profit rate 11.7%) was analyzed that last operating profitability after 4 insurance cost deduction produces more 4.4% about direction construction.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.42
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• pp.275-305
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• 2009

Marine insurance contracts, which intended to provide indemnity against marine risks upon the payment of price, known as a premium, originated in Northern Italy in the late 12th and early 13th centuries. The law and practice were later introduced into England through the Continent. It is, therefore, quite exact that English and European marine insurance law have common roots. Nevertheless, significant divergences between English and European insurance systems occurred since the late 17th century, mainly due to different approaches adopted by English courts. The rule of warranty in English marine insurance was developed and clarified in the second part of the 18th century by Lord Mansfield, who laid the foundations of the modern English law of marine insurance, and developed different approaches, especially in the field of warranty in marine insurance law. Since the age of Lord Mansfield, English marine insurance law has a unique rule on warranty. This article is, therefore, designed to analyse the overall rule of the rule of warranty in English marine insurance law. The result of analysis are as following. First, warranties are incorporated to serve a very significant function in the law of insurance, that is, confining or determining the scope of the cover agreed by the insurer. From the insurer's point of view, such the function of warranties is crucial, because his liability, agreed on the contract of insurance, largely depend on in, and the warranties, incorporated in the contract play an essential role in assessing the risk. If the warranty is breached, the risk initially agreed is altered and that serves the reason why the insurer is allowed to discharge automatically further liability from the date of breach. Secondly, the term 'warranty' is used to describe a term of the contract in general and insurance contract law, but the breach of which affords different remedies between general contract law and insurance contract law. Thirdly, a express warranty may be in any form of words from which the intention to warrant is to be inferred. An express warranty must be included in, or written upon, the policy, or must be contained in some document incorporated by reference into the policy. It does not matter how this is done. Fourthly, a warranty is a condition precedent to the insurer's liability on the contract, and, therefore, once broken, the insurer automatically ceases to be liable. If the breach pre-dates the attachment of risk, the insurer will never put on risk, whereas if the breach occurs after inception of risk, the insurer remains liable for any losses within the scope of the policy, but has no liability for any subsequent losses. Finally, the requirements on the warranty must be determined in according to the rule of strict construction. As results, it is irrelevant: the reason that a certain warranty is introduced into the contract, whether the warranty is material to the insurer's decision to accept the contract, whether or not the warranty is irrelevant to the risk or a loss, the extent of compliance, that is, whether the requirements on the warranty is complied exactly or substantially, the unreasonableness or hardship of the rule of strict construction, and whether a breach of warranty has been remedied, and the warranty complied with, before loss.

• International conference on construction engineering and project management
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• 2015.10a
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• pp.192-194
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• 2015

The growing size and complex process in construction project recently leads to increase risk and the losses as well. Even though researchers have identified the major risk indicators, there is lack of comprehensive and quantitative research for identifying the relationship between the risk indicators and economic losses associated with construction projects. To address this shortage of research, this study defines risk indicators and create a framework to assess the influence of economic losses from the indicators. An insurance company's claim payout record was accepted as the dependent variable to reflect the real economic losses. Based on the claims, we categorized the causes and results of accidents. To establish framework, built environment vulnerability indicators and geographical vulnerability indicators were employed as the risk indicators. A Pearson correlation analysis was adopted to validate the relationship with loss ratio and risk indicators. Consequently, this framework and its results may offer significant references for under writers of insurance companies and loss prevention activities.

• Asia pacific journal of information systems
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• v.8 no.3
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• pp.165-180
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• 1998

In this study, we analysed the current situation of Internet-based insurance services which can provide a non-traditional and cost effective communication channel between the customers and insurance companies. The service of Internet-based cyber-insurance extends from mere advertisement to on-line contracts through planning simulations and, furthermore, to customer monitoring. This cyber-insurance is the demand of the times and is not to be overlooked-by the Korean insurance companies which are suffering from accumulated loss and are facing severe economic depression. We performed a comparative analysis between the domestic cyber-insurance service and pioneers'. Also, we suggested future possibilities of cyber-insurance services, presenting an architecture for the construction of a cyber-insurance management module within the meta financial investment system.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2015.11a
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• pp.60-61
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• 2015

In recent years, the accidents in construction projects are continuously increasing due to their complexity and variety. However, few studies have been conducted regarding the risk prediction model and the database of risk assessment in construction projects. To address of these issues, the objective of this study is to analyze the accident causes by using insured claim payouts of insurance companies. First, the descriptive analysis of accidents causes is conducted according to scheduling rate, season, and total construction costs. Second, the correlation analysis is conducted between accidents causes and total construction costs. In the future, the risk assessment model can be developed to quantify the accident causes in construction projects to estimate claim payouts of insurance companies.

• Journal of the Korea Institute of Building Construction
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• v.20 no.1
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• pp.83-91
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• 2020

The recent bridge construction projects is demanded more sophisticated risk management measures and loss forecasts to brace for risk losses from an increase in the trend of bridge construction. This study aims to analyze the risk factors that caused the loss of material in actual bridge construction and to develop a quantified predictive loss model, based on the past record of insurance payment by major domestic insurance companies for bridge construction projects. For the development of quantitative bridge construction loss model, the dependent variable was selected as the loss ratio, i.e., the ratio of insurance payout divided by the total project cost, while the independent variable adopted 1) Technical factors: superstructure type, foundation type, construction method, and bridge length 2) Natural hazards: typhoon and flood 3) Project information: construction period and total project cost. Among the selected independent variables, superstructure type, construction method, and project period were shown to affect the ratio of bridge construction losses. The results of this study can provide government agencies, bridge construction design and construction and insurance companies with the quantitative damage prediction and risk assessment services, using risk indicators and loss prediction functions derived from the findings of this study and can be used as a guideline for future basic bridge risk assessment development research.

• International Journal of High-Rise Buildings
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• v.11 no.1
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• pp.1-14
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• 2022

Debates on what is the first skyscraper have been ongoing from time to time since the construction of the Home Insurance Building in Chicago in 1885, which is generally recognized as the first built skyscraper. This paper attempts to verify this assertion through a detailed investigation after identifying the criteria that characterize a skyscraper. By considering and examining several competing buildings for the title of "first skyscraper" in terms of their levels of satisfying these criteria, the paper reconfirms that the Home Insurance Building in Chicago indeed qualifies as the first skyscraper and is the harbinger of future skyscrapers. By introducing technological and associated architectural innovations in this pioneering building, its designer William Le Baron Jenney paved the way for the construction of future skyscrapers. In traditional construction, heavy masonry walls especially at lower levels did not allow large window openings in exterior walls that would permit ample daylight. For the Home Insurance Building, originally built with 10 stories, Jenney created a metal-framed skeletal structure that carried the building's loads, making the building lighter and allowed for large windows permitting ample natural light to the building's interior. The exterior iron columns were encased in relatively small masonry piers mainly for fireproofing, weather-protection and façade aesthetics. Relying on the structural framing on the building's perimeter, the exterior masonry thus turned into a rudimentary "curtain wall" system, heralding the use of curtain wall construction in future skyscrapers. This building's innovative structural system led to what is known as the "Chicago Skeleton," and eventually produced remarkable skyscrapers all over the world.

• Korean Journal of Construction Engineering and Management
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• v.4 no.1 s.13
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• pp.122-130
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• 2003

Nowadays, as construction projects become bigger, the probability of construction accidents is higher than any other day. When construction accidents break out, we may suffer from the loss of life and property. For preventing these damages, there is lawed that some public constructions have to insure Contractor's all risks insurance policy (CAR), However, CAR is used to preventing the insured from the loss of construction accidents, it is debated that the premium rate of CAR is not fair to the insured (contractors) The objects of this thesis are as follows Firstly, the fairness of the premium rate of CAR is reviewed, and then the amount of risk of the insured evaluates and applies to the premium rate. Secondly, the development direction of components for evaluating the amount of risk of the insured is presented in the research. Lastly, how to use the team which assesses the risk of the insured and construction works is proposed for deciding reasonably the premium rate of CAR