• International conference on construction engineering and project management
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• 2007.03a
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• pp.130-139
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• 2007

This paper presents a study on risk analysis in terms of contractor's costs in construction phase in which Crystal ball (software of Decisioneering, UK) has been utilized as a main tool. To realize it, a questionnaire survey has been carried out to identify the dominant factors that strongly influence contractor costs in Vietnam. Based on results of questionnaire investigation, the survey identified three factors which were duration of each construction task, costs of reinforcing steel, and cement. Then a spreadsheet model was created in order to analyze risks. The study also indicates that the cost of reinforcing steel and cement are the cause of risks for contractors. According to the suggested model, contractors may foresee the probability of completion within the approved budget, and the possibility of earning in accordance with owner's payment conditions.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.1002-1006
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• 2005

When we compare CM system with Design Bid Build system, we can see two striking features in CM system. First, CMr participates in construction team along with Owner, Designer and Constructor. The newcomer can change boundaries of function and responsibility. Second, Compatibility through each phase and Objectivity of decision-making become more important, because relation among stakeholders changes from a rectilinear to a network. However, it is not clear how the risk of completion is reasonably treated. So we have to think about the relations between Owner and CMr, CMr and Specialist Contractor from a point of trade risk. This paper covers them.

• International conference on construction engineering and project management
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• 2020.12a
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• pp.50-59
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• 2020

The 21st century is witnessing a rapid growth of tall buildings in urban centers globally to create more urban space for an anticipated urban population. Tall buildings, however suffer from incessant delays and sometimes total abandonment. Consequently, this study investigated and ranked the causes of delay in tall building projects, while focusing on the Gulf Cooperation Council (GCC) countries. Initially, 36 common delay causes investigated globally were categorized into 9 groups, and then further ranked utilizing the Relative Importance Index (RII) through a questionnaire survey. Tall building professionals in the GCC countries (Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Oman and Qatar) were contacted. The respondents' categories include Consultants, Contractors, and Clients' Representatives/Facility Managers. The results reveal that the top three causes include "client's cash flow problems/delays in contractor's payment", "contractor's financial difficulties", and "poor site organization and coordination between various parties". The findings from this study could help construction professionals develop guidelines and controls for delay mitigation, as well as support them in risk-based decision making in the planning of tall building projects.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.399-406
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• 2011

Various construction bonds and warranties critically burden the general contractor. Also, sporadic or cumulative delays of progress payment by the owner can further trap the contractor in a financial quagmire. Facing the possibility of cash flow deficiency and callous response from the banks, most construction firms may become financially incapable of market competition, and attractive project tenders become a bidding game among few deep-pocket players. The downside of such market environment is that the depth of pocket, rather than that of professional competency dictates the choice of market winners. In Taiwan, this has been a potential crisis to the construction industry after the financial crisis which started out since 2008. To encounter this problem, this research will examine the means to better manage the construction industry. Essentially, a credit guarantee system (CGS) is the prime solution to strengthen a bank's confidence in any particular construction firm. Thus establishing a national platform which evaluates and rewards a construction firm's overall credibility is pivotal, and this third-party rated credit can help a bank to render a loan more wisely. Finally, this paper will propose the ideal operating schemes of construction-specific CGS in Taiwan and a credit scoring prototype model for construction industry, as reference for the government and banks, respectively.

• Korea Real Estate Review
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• v.28 no.4
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• pp.53-62
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• 2018

When the contractor does not receive payment for his work due to the client's funding default, he can take various legal measures against the client, in addition to refusing to transfer the building under construction to the client. To claim top payment priority and to demand the equal enforcement of the law by applying for compulsory auction or auction by exercising the right of lien, the contractor should know the construction phase or the point in time when he could exercise a lien or apply for a forced auction of the unregistered building. This study was conducted to examine qualification for lien and auction of an unregistered building. First, the general criteria for qualification for lien from qualification for ownership were examined. This means that an unregistered building can be subject to lien from a certain point in time in the construction phase, where the ownership is qualified as an independent real estate with minimal pillars, roofs, and walls. Second, the contents of the narrow and broad auction qualification were analyzed. As the contractor can select the appropriate legal means to reimburse the construction cost for the unregistered building, the results of this study are expected to provide the bases for qualification for lien on and auction of unregistered buildings.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.596-601
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• 2013

In the current pavement construction practice, the state agencies traditionally determine the quality of the as-constructed pavement mix based on individual mixture material parameters (e.g., air voids, cement or asphalt content, aggregate gradation, etc.) and consider these parameters as key variables to influence payment schedule to the contractors and the present and future quality of the as-constructed mixture. A set of empirically pre-determined pay adjustment schedule for each parameter that was differently developed and being used by the individual agencies is then applied to a given project, in order to judge whether each parameter conforms to the designated specifications and consequently the contractor may either be rewarded or penalized in accordance with the payment schedule. With an improved quality assurance system, the Performance Related Specification, the individual parameters are not utilized as a direct judgment factor; rather, they become independent variables within a performance prediction function which is directly used to predict the performance. The quantified performance based on the prediction model is then applied to evaluate the pavement quality. This paper presents the brief history of the quality assurance in asphalt pavement construction including the Performance Related Specifications, statistical performance models in terms of fatigue and rutting distresses, as an example of the performance prediction models, and envisions the possibilities as to how this Performance Related Specification could be utilized in other infrastructures construction quality assurance.

• Architectural research
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• v.8 no.1
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• pp.69-76
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• 2006

The purpose of this study is to suggest policies to improve the price escalation system in a construction contract through a Policy Delphi technique. The Delphi, including two times questionnaires and a group discussion, was conducted by joining 14 experts. Also, the escalation provisions of various countries were examined. Results of the Delphi showed that the minimum fluctuation rate for price escalation was desirable at a level of 3%. To compute the fluctuation rate, calculating the price fluctuation of overall articles was more desirable than using price indices. A bidding date was more reasonable as the initial date of change in price. Losses caused by price change should be shared between contractor and owner; therefore a deduction rate should be introduced in price escalation. Meanwhile, overhead and profit should be adjusted in proportion to the fluctuation rate; but advance payment or the delayed construction amount should be deducted from the adjusted amount.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2010.05a
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• pp.149-152
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• 2010

Construction labor provider system is requested system by professional construction companys of profitless caused by directly hire of construction labor and labor management of difficulty after construction participants system abolition. Complemental laws which occured problems of Payment of wages, illegal subcontracting In construction participants system is prepared and no complemental point included in revised bill. but Construction labor groups oppose introduction of Construction labor provider system because groups concern to occurr before problem in construction participants system. The purpose of this study is drawn satisfactory system to Specialty contractor and construction worker.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.502-506
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• 2013

The cash flow forecasting is normally done by contractors in construction industry at early stages of the project for contractual decisions. The decision making in such situations involve uncertainty about future cash flows and assessment of working capital requirements gains more importance in projects constrained by cash. The traditional approach to assess the working capital requirements is deterministic in and neglects the uncertainty. This paper presents an alternate approach to assessment of working capital requirements for contractor based on fuzzy set theory by considering the uncertainty and ambiguity involved at payment periods. Statistical methods are used to deal with the uncertainty for working capital curves. Membership functions of the fuzzy sets are developed based on these statistical measures. Advantage of fuzzy peak working capital requirements is demonstrated using peak working capital requirements curves. Fuzzy peak working capital requirements curves are compared with deterministic curves and the results are analyzed. Fuzzy weighted average methodology is proposed for the assessment of peak working capital requirements.

• Journal of Korean Institute of Industrial Engineers
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• v.39 no.5
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• pp.429-439
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• 2013

The Korean Veterans' Pension Fund has previously pre-purchased Gibril Tower on Business Complex in Dubai, UAE, via a project-financed construction investment. Although the property is near completion, the investor syndicate's attempt to debt-finance due arrears was foiled in Dubai central bank's credit control of real estaterelated loans. Accordingly, the investment coordinator offered an additional capital injection, a collateralized leverage, and a maturity extension to the syndicate. If the syndicate rejects the offer, they may risk a nearcomplete capital loss and a possible default of the main contractor. Otherwise, the syndicate may still face uncertainties regarding interest receivables, principal re-payment, foreclosure, economic recession in Dubai, and the Islamic bond bill in the Korean Parliament. A possible exercise of the latter option may be due to the agency-prone nature of pension fund managers. Given these qualitative risk factors as at April 1, 2011, a real options approach-implied optimal decision suggests an extended and complete cash augmentation into the project finance deal.