• Korean Journal of Construction Engineering and Management
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• 제2권2호
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• pp.68-80
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• 2001

While opportunities for international construction firms have been growing with globalization, the risk of international construction projects is significantly increasing in severity and complexity. However, the traditional risk management approach in the construction industry has maintained a profit focus. In addition, this approach has not considered the overall risk at the corporate level, but rather has focused only on the risk of individuals at the project level. Corporate risk management should be implemented from the initial stages of new project selection. This paper suggests the Multi-criteria Integrated Systematic Analysis as a strategic decision-making tool for international construction contractors. The model integrates the multi-criteria of risk, return, and efficiency to choose the optimal set of new portfolios at the corporate level. This model also introduces the Value at Risk (VaR) concept to the international construction industry to present the total risk at the corporate level. To validate this model, this paper tested an experimental case study using the historical data of a global general contractor.

• Korean Journal of Construction Engineering and Management
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• 제17권3호
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• pp.90-97
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• 2016

Since Korean construction firms have steadily advanced into the international market, small and medium construction companies (SMCCs) have also advanced in such market. SMCCs's recent trend have clearly shown the changes of contract types from single subcontractor projects to multiple general contracting projects. However, among those multiple projects performed by SMCCs, 1 out of 3 projects were deficit projects that impact the overall pe rformance of the firm. To increase such performance, risk management for in international construction must be managed at the enterprise level for SMCCs. This research aims to create a multiple project management model for SMCCS that employs the concept of acceptable risk to assess the limit risk level for corporation to acceptable. Using the accumulated data from previous survey and International Construction Association of Korea (ICAK), integrated risk of each firm and their profitability of each project are analyzed. Through the analysis, each firm's acceptable risk level is derived. Through the two research steps, acceptable risk algorithm was developed based on corporate integrated risk and profit correlation. To prove the acceptable algorithm relevance, financial statement analysis of 3 corporation was derived that level of acceptable risk and financial statement were available. Through the approach, this research allows the firms to analyze the firm's capability and find projects that suits the firm's situation and capability.

• Korean Journal of Construction Engineering and Management
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• 제13권3호
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• pp.109-121
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• 2012

Overseas construction project orders have shown steady increase since 2001, and it took 44.5% of the total construction project orders in 2010. Overseas construction project needs more complex risk management because it is affected by more various circumstance factors than the domestic construction is. Previous studies have centered on the internal risk factors to assist the decision-making, but there are few researches on the importance and techniques of foreign exchange risk management. Inadequate management of foreign exchange risk has been found to cause huge damages due to the lacking recognition on the importance of foreign exchange risk management. Therefore, current study designed a foreign exchange risk manage model to help efficient management and decision-making. This model was developed as a technique to meet the demand of the increasing overseas construction projects for the efficient management of foreign exchange risk, and the technique will lower the risk with more and more accurate outcome by accumulating the data of profit-and-loss.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 한국건설관리학회 2008년도 정기학술발표대회 논문집
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• pp.268-273
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• 2008

Because a procedure is complicated and various related parties participate in the redevelopment and reconstruction project, it can be extended to diverse disputes when the relation with the related parties is smoothly adjusted. In particular, when the dispute occurs in a phase of occupancy after the complete construction, the regional residents-centric association must give up many rights of invisible parts caused by the construction company's profit maximization because they are short of professionalism about the business. Accordingly, this study is aimed at providing the construction project manager's dispute and claim process for responding to the dispute or claim reasonably and for obtaining the client's (association) rights for the reconstruction project, and at developing the checklist for obtaining the necessary documents by each phase, when the dispute or claim is made by the association against the construction company after the completion of construction. Through this study, the association can obtain the related documents in advance and can implement the reasonable response data when the dispute or claim occurs due to it. Also, it will enable the construction manager to analyze the project costs reasonably and will reduce the estimated wastes. That is, the work efficiency is expected to be improved.

• Korean Journal of Construction Engineering and Management
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• 제13권5호
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• pp.94-102
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• 2012

Recently, the global financial crisis and the increasing number of unsold houses in Korea are construction companies to assess their efficiency. The most important factor in analyzing the efficiency of a company is the input-output variable. However, systematic stud the core input-output variables, which have a great influence on the efficiency analysis. Thus, to the core input-output variables for efficiency analysis of construction companies, this study propose a model that includes all combinations of input-output variables and to find the core input-output variables using the Data Envelopment Analysis(DEA) model and Principal Component Analysis(PCA). Existing research and theories were studied variables and 21 models were established to measure efficiency. were obtained that the core input and output variable in 2006 the number of employees and sales. For 2008, the core input variable was capital stock and the core output variable was quarterly net profit. For 2010, the core input variable was fixed asset and the core output variable was sales. Through obtaining the variables that greatly affect the efficiency of construction companies, it is considered that individual construction companies will be able to prepare a priority strategy to enhance efficiency.

• Korean Journal of Construction Engineering and Management
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• 제18권2호
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• pp.99-107
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• 2017

In recent years, Korean engineering companies are actively entering into the international business. Although international engineering project is known to have lower risk rather that EPC construction project, Korean engineering companies' international sales profit is not as good. Therefore, this study analyzes the risks that are predicted before bid and actually occurred after award. In addition, this study shows the difference of risk depending on lump sum contract and cost reimburse contract. Finally, this study analyzes the difference of risk according to civil engineering and building engineering. This study provides industry to analyze risk more practically and helps academics to focus on risk to be studied more in the future.

• Korean Journal of Construction Engineering and Management
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• 제5권6호
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• pp.191-202
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• 2004

In this study, the project manager-oriented organization model has been verified by analysing it with forming a clear definition of detailed unitary duty entity to develop current non-efficient CM system constituted by functional organization with the decentralized responsibility and apply the model As a result from verification that the model provides valid solutions by comparing it with the existing, the model is better than the existing in cost savings, target profit sales rate, total rate of new on sales. Moreover, various activities in cost savings and cases where improvement is feasible are executed. However, the model caused some problems in organizational operation, project management and in division of duties so this study proposed improving management method

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 한국건설관리학회 2003년도 학술대회지
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• pp.359-364
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• 2003

The loss of potential opportunity profit which is consisting in the partial markups of the corporation would taking placed in related with the time-delay deeply, has customarily disregarded in contract adjustment under the principles of denial of cost accounting method, declined conjecture in the point of benefits and protection of the law in scope of compensation and the restricted conditions of constant contract. It is being resulted from that the policies of the general principles of accounting standards which is subjected to ask an objective data and evidence, and the denial system as a debt derived from imperfect legal theory applied by current law. Therefore, it is necessitated to find if any irrationality in the positive system is and further to draw an improved reasonable measures to adopt by review of constant system preparing tile reasonableness with the method of suitable quantification devices provided that any time-delay is induced by the party.

• Korean Journal of Construction Engineering and Management
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• 제6권5호
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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 Organic Agriculture
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• 제17권3호
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• pp.307-326
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• 2009

The present study suggests a concept of resources circulation type agriculture and a concept of a livestock zone related to it and evaluated economical efficiency about a possibility of the resources circulation type livestock zone based on the concept. As a result, when the resources circulation type livestock zone is operated in an area of 1,300ha, it was evaluated that the profit of 11,244 hundred thousand won per year is generated, compared to the conventional agriculture. When light and heat expenses and roughage of Hanwoo production, production of TMR forage as well as income of the energy and composting business of livestock manure at the recycling center were considered in addition to that, it was judged that the present zone development bushiness has enough business feasibility. However, it is necessary that the support regulations, etc. is constructed so that all produced compost byproducts are used at farmhouses and the system related to facility investment assurance and assistance of operating expenses is maintained. It is thought that the complement of a system is also necessary so that energy or power generation expenses can be operated in the same conditions as other new & renewable energy, and the nation's purchase of carbon credits(CDM) is investigated and systemized in the early period, and construction of a revitalization plan of the business through budget securing of the Ministry of Agriculture and Forestry related to the trade of CDM and carbon emission rights is also a business that should be urgently developed. In the future, the change of an outside environment will further promote use of the energy. Also, as people, who don't know agriculture. farm village, increase day by day because of population concentration in a city, an opportunity that can new added value through experience tourism or educational programs utilizing them is increasing. Accordingly, if programs utilizing social characteristics, such as utilization as a space of tourism. leisure. experience, system construction of bio-energy and system construction that Micro Grid or Smart Grid as a dispersed storage and generation system is stabilized, are constructed, it can be said that revitalization or success conditions of the zone is further achieved.