• Title/Summary/Keyword: contractor system

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MITIGATION AND REMISSION OF CONTRACTOR'S DEFECTS LIABILITY IN KOREAN CONSTRUCTION CONTRACTS

  • Jong-Gwang Lee ;Yong-Su Kim
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.447-451
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    • 2005
  • The purpose of this study is to improve regulations such as law and standard contract forms related to defects liability in Korea. Defects liability has been one of the major causes of construction contract disputes in Korea in recent years. It is important to avoid or resolve disputes regarding defects liability through regulations containing clear criteria and to specify the standard regarding the mitigation and remission of the contractor's defects liability. This study was carried out through document research and analysis of judicial precedents. The following are the courses of improvement regarding the mitigation and remission of defects liability in Korea. First, laws and standard contract forms must contain more detailed clauses regarding exemption of a contractor's defects liability, which clearly set out the scope of the defects liability of the contractor. Second, the current system for defects liability favors the owner rather than the contractor - it is necessary to change the defects liability system in order to give the owner and the contractor an equal standing. Third, strict liability is taken on by the contractor even when the term of guarantee for defects lasts longer than the legally set period of liability for defects. Hence, it is necessary to improve the system by alleviating the liability of the contractor through applying negligence liability as opposed to strict liability during the term of guarantee.

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Recognition of Occupational Safety and Health Management of Contractor Company (모기업 협력업체 산업안전보건관리에 대한 인식)

  • Rhee, Kyung-Yong;Yi, Kwan-Hyung;Oh, Ji-Young;Suh, Nam-Kyu;Son, Doo-Ik;Gal, Won-Mo;Shin, Moon-Jin
    • Journal of the Korean Society of Safety
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    • v.18 no.4
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    • pp.136-142
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    • 2003
  • This study is planned to investigate the attitude toward the safety and health management of contractor company. Under the contract based production system, all of activities including safety and health management in the contractor company are depended upon the contract. How to make contract influence the worker's health of contractor company. Worker's health of contractor company can be protected by efforts of company of contract-out and contractor company, especially their safety managers. The modelling of the effective safety and health management system for contractor company should consider the need of safety manager of each company and employer of contractor company. Data is collected from safety managers of 3 contract out compaines as electronic and electrical manufacturing industry and 55 safety manager, 57 employers of their contractor compaines using self administered survey with structured questionnaire. The most of all respondents want to support from the contract out compaines. The most important items supported from contract out company is the information based on the safety information network between each company. Safety manager and employer of contactor company also itemized safety education and training in the supporting system from contract out company. These results can be generalized to survey on the other industries.

Primitive Forms of General Contractor Business in the Railroad Construction during the Daehan Empire (철도공사를 통해 본 대한제국기 청부업의 초기적 형태)

  • Lee, Soo-Neon;Jeon, Bong-Hee
    • Journal of architectural history
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    • v.29 no.5
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    • pp.17-28
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    • 2020
  • The general contractor business in South Korea settled in the railway construction during the Daehan Empire, but depending on the construction intention and circumstances of the railroad, relationship among employer-contractor-subcontractor and their roles under the system of the construction process had changed. At the time of laying the Gyeongin and Gyeongbu-rail, the Empire, which had no capital and technology, passed all the power and responsibility of the rail laying to the contractor, who was involved in most of the process. After this, the empire tried to lay Gyeongui-railroad without the help of other countries. Japan prepared for the Russo-Japanese War and decided to construct the railway rapidly, and completed the railway in parallel with direct management work and contract work. From that time on, the general contractor would only do the work. During the construction of railroad in Daehan empire, the general contract business system was established. The ambiguous process was sorted out and divided. At this time, subjects in charge of design and construction has been divided. The internal organization of the project owner and the contractor were organaized and specialized.

A Study on the Obstacle Factors of Construction Works in terms of the Specialty Contractors (전문건설업체 측면에서 전문공종 시공업무 장애 요인에 관한 연구)

  • Yang, Jin-Kook;Lee, Ki-Hun;Lee, Sang-Beom
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2021.05a
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    • pp.155-156
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    • 2021
  • Most of the construction works in domestic are not direct undertaking work, but by a contract method including subcontracting. Therefore, a general contractor for each project jointly carry out construction work with a specialty contractor for each engineering type. However, in terms of contract, this method is not a joint venture contract, but a subcontract. Accordingly, this system can cause various problems between the prime contractor and the subcontractor. Therefore, this study aims to extract and present the actual obstacle factors in terms of specialty contract company performing specialty construction work for construction project. The presented contents are expected to present the standard for the cooperation system that the prime contractor and the subcontractor can win-win.

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Development of Awarding System for Construction Contractors in Gaza Strip Using Artificial Neural Network (ANN)

  • El-Sawalhi, Nabil;Hajar, Yousef Abu
    • Journal of Construction Engineering and Project Management
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    • v.6 no.3
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    • pp.1-7
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    • 2016
  • The purpose of this paper is to develop a model for selecting the best contractor in the Gaza Strip using the Artificial Neural Network (ANN). The contractor's selection methods and criteria were identified using a field survey. Fifty four engineers were asked to fill a questionnaire that covers factors related to the selection criteria of contractors practiced in Gaza Strip. The results shows that the dominant part of respondents (91%) confirmed that the current awarding method "the lowest bid price" is considered one of the major problems of the construction sector, "award the bid to the highest weight after combination of the technical and financial scores" represented 50% of the respondents. The criteria weights were determined based on Relative Importance Index (RII. Ninety-one tenders(13 projects) were used to train and test the ANN model after re-evaluating the contractors depend on the weights of factors to select the best contractor who achieves the highest score. Neurosolution software was used to train the models. The results of the trained models indicated that neural network reasonably succeeded in selection the best contractor with 95.96% accuracy. The performed sensitivity analysis showed that the profitability and capital of company are the most influential parameters in selection contractors. This model gives chance to the owner to be more accurate in selecting the most appropriate contractor.

The Effect of Construction Safety Supervision System on Risk Control and Reduction (건설안전감리제도가 위험제어 및 절감에 미치는 영향)

  • Lim, Jin-Sang;Kang, Kyung-Sik
    • Journal of the Korea Safety Management & Science
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    • v.20 no.3
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    • pp.1-9
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    • 2018
  • This study is intended to look into the effect of construction safety supervision system on risk control and reduction. To achieve this, a survey was carried out to 114 companies in construction, ordering, contract and management. The overall findings were as follows. The effect of construction safety supervision system on risk control and reduction showed that factors of supervision system, supervision cost and supervision method had a positive effect on risk control and reduction. And their perception of the introduction of safety supervision system in construction sites according to process showed that there was a difference between them according to the field of ordering, contract and supervision. There was the biggest difference between owner and contractor in double supervision system, but no difference between them in the perception of risk reduction. These results show that all ordering, contract and supervision are positively needed for the introduction of construction safety supervision. This means that there is a difference between owner and contractor in the perception of process according to system operation. All companies agree to system improvement by the settlement of safety supervision system for the prevention of safety accidents and safe construction, but the systematic complement of safety supervision is the burden of contractor. And there is a big difference between owner and contractor in the perception of responsibility and concern for cost burden.

CRITICAL DRIVING FORCE FOR CONTRACTOR'S OPPORTUNISTIC BIDDING BEHAVIOR IN PUBLIC WORKS

  • Min-Ren Yan ;Wei Lo ;Chien-Liang Lin
    • International conference on construction engineering and project management
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    • 2005.10a
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    • pp.417-423
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    • 2005
  • Contractor's opportunistic bidding behavior refers to contractor's deliberate low-bid, which cannot accord with the cost, and expectation for beyond-contractual reward (BCR), the compensation earned through cutting corners or claims after undertaking the construction project. This research applies System Dynamics to develop a model of contractor's pricing with consideration for dimensions of "cost", "market competition", and "BCR". Iterative computer simulations were performed to analyze the effects of contractor's pricing on the market price. The results were then examined by statistical analysis on data collected from 44 highway projects in Taiwan. It is found that the critical force driving the contractors to bid opportunistically is their excessive expectations in BCR under the current environment. Within the price competition mechanism, if the problem of BCR exists, even if the bidding system is further improved, contractors would still prefer opportunistic bidding behavior, and eventually make the whole construction industry operate ineffectively. Therefore, it is crucial to remedy the aforementioned BCR problem by more effective management policy.

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A Mechanism to Derive Optimal Contractor-type & Action Comginations of a Single-source Procurement Contract

  • 정승호
    • Journal of the Korean Operations Research and Management Science Society
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    • v.24 no.2
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    • pp.41-51
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    • 1999
  • In sole-source procurement contraction for government goods and services, the buyer (government) needs to derive the optimal actions from the contractor so the buyer can obtain the maximum utility and the contractor, or single-source supplier, is guaranteed the equivalent of a minimum level of profit. Under the assumption of risk-neutrality for both the buyer and the contractor and the buyer's unobservability of the contractor's action, it is necessary for the buyer to design a (mathematical) model to achieve the above objective. This paper considers the mathematical formulation in which two problems - moral hazard and adverse selection - are present simultaneously; furthermore, from the formulation, a GAMS (General Algebraic Modeling System) program is used for a possible buyer to obtain the optimal actions.

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CAN TRUST BETWEEN AN OWNER AND A CONTRACTOR BE ESTABLISHED: A PRINCIPAL-AGENT PERSPECTIVE

  • Jiang-wei Xu;Sungwoo Moon
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.1474-1478
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    • 2009
  • The cooperation and trust among the project participants play a critical role in the success or failure of any delivery system in construction industry. But it is very difficult to establish trust between an owner and a contractor when rational people only pursue only their own material self-interest. Based on the principal-agent theory, this paper will introduce the altruistic behavior into the traditional principal-agent model, and model the reciprocal behavior between the owner and contractor. We will show that both the owner and the contractor benefit from their reciprocal behavior, and hence trust establishing between them is possible. More importantly, we will proof that the higher the project uncertainty is, the more important trust establishing is.

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BASIC RESEARCH OF SUB-PACKAGE PROBLEM IN KOREAN CONSTRUCTION INDUSTRY

  • Jinho Shin;Furusaka Shuzo
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.635-641
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    • 2009
  • In the building construction, the specialist contractors play the important roles in the point of the quality securing. Therefore, it is very important for the construction industry to study the sub-package problem. The sub-package problem includes two problems which should be solved. One is to decide the scope of works of each specialist contractor, and another one is to decide the particular specialist contractor which carries out the work. However, the sub-package problem in Korea is not clarified yet, although the circumstance around it has changed rapidly. Many factors influence to the sub-package problem regardless of internal factors or external factors of the project. The general contractor usually decides the sub-package under considering the project conditions. In case of the internal factors, each general contractor manages the organization and materials. But the external factors are relatively more difficult to control and predict than internal ones. But out of the external factors, the legal system has very close relationship with a sub-package problem especially in Korean construction system. So, this paper clarifies relationship between the legal system relating subcontracting and the state of sub-package.

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