• Title/Summary/Keyword: contracting costs

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The Investigation and Improvement plan of Contracting-out municipal wastewater treatment plant system in Korea (국내 하수처리장 관리대행 현황 및 제도 개선 방안)

  • Im, Jiyeol;Gil, Kyungik
    • Journal of Wetlands Research
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    • v.19 no.2
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    • pp.211-215
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    • 2017
  • The market of the municipal wasetewater treatment plant (MWTP) operation is expanding across the world including Korea. The contracting-out system was introduced for the effective operation of MWTPs. However, an improvement of the contracting-out system of MWTP has been continuously required. This research investigated current operational status of MWTPs in Korea, to suggest the improvement of the cost effective MWTP operation to promote the contracting-out system of MWTP operation. Results showed that lower operational costs of MWTP were lower in larger MWTPs than in smaller MWTPs. Overall, MWTPs operated by a public enterprise showed lower operational costs than those operated by government agencies and private enterprises. Among the MWTPs similar in their treatment capacity, treatment process and operation period, MWTPs operated by private enterprises showed the lowest operational cost. According to the survey, managers and operators of MWTPs emphasized the importance of improvement on the methods of selecting operating agencies and estimating operationing costs. The results of this study should be useful as important supporting data to promote the contracting-out system for the MWTP operation.

A Study on the Legislation for Separate Prime Contracting in the Fire Facility Business (소방시설업의 분리발주 법제화에 관한 연구)

  • Lee, Chang Woo
    • Fire Science and Engineering
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    • v.27 no.6
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    • pp.97-103
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    • 2013
  • This study analyzes the present public construction ordering system focussing on the legal framework for the fire facilities construction business and investigates the problem of subcontracting, and further reviews why Separate Prime Contracting should be recommended in policy, social, legislative and regulative terms. This study suggests the amendment of Fire Facilities Construction Business Act, with new bill drafting. The result of this study shows the present public construction ordering system has huge disparities between main building construction business and fire facilities construction business, and recommend Separate Prime Contracting should be adopted in the fields of fire facilities construction business. The system of Separate Prime Contracting may secure business entities' responsibility and higher quality of fire facilities, and also result in reasonable construction practices in reasonable costs. This system may also contribute to improve public safety level in fire facilities construction.

Cognition of VT CEOs on the Theoretical Success Conditions of Contracting-out VT Services (직업훈련 민간위탁의 이론적 성공조건에 대한 훈련기관장의 인식과 시사점)

  • Yoo, Kil-Sang
    • The Journal of Korean Institute for Practical Engineering Education
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    • v.3 no.1
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    • pp.176-182
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    • 2011
  • This paper analyzes cognition of the vocational training (VT) CEOs on the theoretical success conditions of contracting-out VT services to private training providers, by using survey results on 87 CEOs. The survey results show that VT CEOs agree with most of the theoretical success conditions of contracting-out VT services. The only thing they do not agree with the theoretical success conditions was that CEOs prefer direct trainee recruiting instead of referral by public employment service offices after consulting and job capacity assessment. This implies that government can smoothly transfer vocational training policies suitable for the success conditions of contracting-out vocational training services to private training providers.

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A Study on the Development Strategies of the Priority Job Training Program (우선선정직종훈련제도의 발전방안 연구)

  • Yoo, Kil-Sang
    • The Journal of Korean Institute for Practical Engineering Education
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    • v.2 no.1
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    • pp.120-125
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    • 2010
  • The priority job training program is one of key training programs in Korea. This training program has some fundamental problems. The process of selecting the detailed training jobs does not reveal the true training demand of industry sectors. The contracting-out process and control mechanism of the priority job training program show several weaknesses from the points of success conditions of contracting-out public services. In this paper, I proposed development strategies of the priority job training program. The contract period should be longer than one year so that the training institutions may invest for improving quality of training in the longer perspective and reduce transaction costs. The training fee pay mechanism should be more performance-based.

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A Fundamental Study on the Causes of Defects in Landscape Construction Projects Based on the Ratio of In-House and Supplied Materials -Focused on Incheon Metropolitan City- (조경공사업에서 관급자재·사급자재 비율에 따른 하자 원인에 대한 기초연구 -인천광역시 사례를 중심으로-)

  • Sang-Won Hwang;Sung-Jin Yeom;Chung-In Park
    • Journal of Environmental Science International
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    • v.32 no.11
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    • pp.821-831
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    • 2023
  • Recently, landscaping construction has played a significant role in enhancing the quality of life for citizens by creating and maintaining outdoor spaces. However, landscaping projects vary in material procurement depending on the contracting method, and they also present various challenges in defect occurrence and defect rectification due to their specialized nature. In this study, we classified different types of projects based on material procurement ratios and conducted on-site assessments of defect status by specific processes. We also analyzed the itemization of material ratios and defect rectification costs. The results revealed it was found that projects with a higher proportion of government-provided materials had the poorest defect status in terms of planting works and also incurred the highest defect rectification costs. Moreover, conflicts concerning the responsibility for defects arose. Currently, there are no specific guidelines for setting standards for the proportion of government-provided materials in landscaping construction contracts. Furthermore, there is ambiguity in the management of defect rectification. Therefore, it is necessary to establish a systematic landscaping construction contracting framework by providing institutional guidelines tailored to local governments or the circumstances of contracting entities and to conduct thorough reviews of construction processes.

A Basic Study on the Methodology to Introduce Warranty Contracting for Pavements in Korea (도로포장 성능보증(Warranty) 계약제도 도입방안에 관한 기초연구)

  • Kim, Tae-Song;Seo, Yong-Chil;Lee, Sang-Beom;Koo, Jai-Dong
    • 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.

A Study on the Design Development and Construction Process in British Airways London Eye (런던아이의 디자인 전개와 건립과정에 관한 연구)

  • Woo, Dae-Seung
    • Journal of architectural history
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    • v.15 no.1 s.45
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    • pp.7-27
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    • 2006
  • This study aims to identify and analyze the factors that influenced the construction of London Eye which was led by private groups, including characteristics in progress, differentiated value in design, the combination of technology and design, and construction costs. The results of this study were the followings. 1) London Eye provides a new construction method for a landmark in the downtown in that the architects became the clients of the project which might have been hoarded, procuring the construction costs and completing it by themselves. 2) London Eye presents a space utilization method where undeveloped spaces in the downtown are used in three-dimensions by erecting a structure on the river with a minimum land. 3) The process of design, production and erection is propelled the realization of technical intention design with one system and from at the initial stage, the participation of the engineer where the designer is equal with you must accompany. 4) London Eye is endowed with strong shape by a circle in design concept, which is the simplest geometrical figure, and it provides organic relationship between the past and the present by utilizing historical elements in various ways. 5) The construction was completed through four phases including idea phase, promotion phase, turn-key contract phase, and design-build phase. The most critical factor to the success is derived from the direct contact with Involved companies from the production phase. 6) In a project facing many challenges in terms of technology, the design-build method proves to be a more effective method than turn-key contract in that it may more allocate risks and enable coherent implementation of the core concept in design. The organization for the design-build method was composed of three phases including general affairs, responsible contracting by sector, and cooperative system by sector. Since that was a new concept structure, high-level contractors who hadn't had existing cooperative relationships with one another formed new cooperative relationship, while collaborating companies who had long cooperated led the responsible contracting and sub-cooperative system, which resulted in reduction of risks and time. 7) The major factors to change design were the design characteristics, derived from a technically great combination, and the opening time. 8) A new erection method was applied to London Eye, a structure that overcame the limitation in land and period, and the process of installation demonstrated that it is an important value for the construction of a landmark in the city. 9) In spite of many visitors and tremendous operational income, the factors that London Eye fails to free itself from debts include the construction costs expended double than expected, and interest burden to the investments, which occurred in the course of procuring the costs. Absolute limit in time increased the construction costs, resulting in being a great obstacle in the course of operation.

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A Quantity Flexibility Contract Model for Optimal Purchase Decision (최적 구매량 결정을 위한 QF 계약 모형)

  • Kim Jong-Soo;Kim Tai-Young;Kang Woo-Seok
    • Journal of the Korean Operations Research and Management Science Society
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    • v.31 no.2
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    • pp.129-140
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    • 2006
  • Quantity Flexibility contract coordinates individually motivated supplier and buyer to the systemwide optimal outcome by effectively allocating the costs of market demand uncertainty. The main feature of the contract is to couple the buyer's commitment to purchase no less than a certain percentage below the forecast with the supplier's guarantee to deliver up to a certain percentage above. In this paper we refine the previous models by adding some realistic features including the upper and lower limits of the purchase. We also incorporate purchase and canceling costs in a cost function to reflect the real world contracting process more accurately. To obtain the solution of the model, we derive a condition for extreme points using the Leibniz's rule and construct an algorithm for finding the optimal solution of the model. Several examples illustrating the algorithm show that the approach is valid and efficient.

Study on Cost-shifting in Cost Reimbursement type of Defense Contracts (개산형 방산계약에서의 원가이전에 관한 실증연구)

  • Lee, Jeong-Dong;Lee, Chun-Ju;Jung, Kyeong-In
    • Journal of the military operations research society of Korea
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    • v.31 no.2
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    • pp.1-12
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    • 2005
  • Defense firms' excess profitability by shifting common overhead costs from non-defense sector to defense sector in the award of cost reimbursement type of defense contracts is a widespread conclusion in prior researches. In this paper, we reviewed cost-shifting incentives in defense-contracting firms and extended the analysis of McGowan and Vendrzyk(2002) by applying modified model to Korea Defense Contracts. We formulated six hypotheses to test the relation of cost-shifting and excess profitability regarding market openness, auditing system, ranking in defense contracts, and firm types(sole defense contractors, sole non-defense contractors, and defense and non-defense mixed contractors). But, we could not find any evidence that defense firms shifted costs from non-defense sector to defense sector for the period 1997-2002. The results suggest that the excess profitability of Korea defense firms may not be from the cost-shifting but from other reasons.

Study on Welfare improvement of private security guards - Focusing on the wages and welfare system - (민간경비원의 복리(福利)증진(增進) 방안 연구 -임금 및 복리후생제도를 중심으로-)

  • Kim, Kye-Won;Lee, Keun-Eil
    • Convergence Security Journal
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    • v.16 no.6_2
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    • pp.3-22
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    • 2016
  • The purpose of this paper is to study ways to improve the welfare of private security guards. For this reason, it was analyzed the actual situation of the private security guards' wage and welfare system. As a result of the analysis, the most important factors that affect the wages and welfare system of private security guards was such as contracting costs, the minimum wage level, professional duties. In particular, a private security guards have been recognized as the most low-level professionalism sorted by the simple laborers standard classification. Wages of guards in accordance with this recognition is only about 47% of major company on average, about 80% of the small business average. If the proposed future improvements include: First, we need to improve the professionalism of a private security. Second, It is established a mutual-aid project about private security guards. Third, It shall regulate the wage of private security guards on Private Security Industry Act. Fourth, we should adopt a selective welfare system.