• Title/Summary/Keyword: general construction business

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Analysis of Mutual Market Entry Level between General and Specialty Contractors according to Abolishing the Regulation of Business Area (업무분야 규제의 폐지에 따른 종합 및 전문건설사업자들의 상호시장 진출 수준 분석)

  • Lee, Chijoo;Kang, Hyeongjoo;Moon, Hyuk;Kim, Minchul
    • Korean Journal of Construction Engineering and Management
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    • v.21 no.2
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    • pp.59-69
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    • 2020
  • The regulation of business area was abolished to improve the competitiveness of the construction industry and the ability of general and specialty contractors to enter the mutual market. As the next step, the government is preparing for a reorganization of business type. If the impact of the abolishing of business area on the construction industry is analyzed, the result can contribute to determining the step by step application scope of the reorganization of business type. This study derived the business types having a high probability of the mutual market entry of general and specialty contractors. Then, the size of mutual market entry is analyzed. First, the connection between the general and specialty construction, and the similarities between the registration standards of general and specialty construction are analyzed. Based on the result, a general contractor can enter 15 business types of specialty construction, and the market size is about 78.8 trillion KRW. This is about 82% of the total contract cost of specialty construction during the year 2017 (about 96 trillion KRW). Next, based on the relevance of business contents, the market size when general contractors enter the specialty construction market is analyzed. As a result, the market size is about 24.7 trillion KRW, and this is about 13% of total contract cost of general construction during the year 2017 (about 190 trillion KRW). Based on the result of this study, there is a higher probability of the mutual market entry of general contractors into specialty construction than vice versa. However, the result of this study is based on the current contents of business types, registration standards, and construction data of before abolishing the regulation of business area. This is a research limitation. If the business contents and registration standards are changed in the future, the result could differ from the current result.

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 of Internet Use by U.S. General Contractors

  • Park Hee-Sung
    • Korean Journal of Construction Engineering and Management
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    • v.4 no.1 s.13
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    • pp.75-80
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    • 2003
  • Internet use in the world is rapidly growing. The Internet Is affecting all aspects of life, as we know it. The world of business will probably be changed forever. The construction industry is a major part of the business world It is also seeing changes because of the Internet. This study is to provide the construction industry with an understanding of the current use of the Internet by U.S. general contractors. This study consisted of surveying construction general contractors with regards to their current and future Internet use. The study shows that Internet use by U.S. general contractors is the highest at what was identified as the support level . Use at the corporate level was second, while use at the project level was lower. This study demonstrates that companies of every size are using the Internet somehow in order to remain competitive and to enable improvement of performance.

Prospects on Changing Business Structure in the Korean Construction Industry (건설업 업역구조 변화에 관한 연구)

  • Lee Seok-Jae;Kim Kyung-Rai;Yu Jin-Keun;Kim Dae-Ho
    • Korean Journal of Construction Engineering and Management
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    • v.2 no.2 s.6
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    • pp.37-46
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    • 2001
  • Business boundaries of firms in the construction industry are strictly regulated in Korea. Under the current law, firms involved in construction processes are classified into five categories; general contractors, specialty contractors, architects' offices, engineering firms, and specialized in inspection. Among these types of firms, general contractors are prohibited to enter into specialty contractor's market and vice versa by the basic law in the construction industry. Also general contractors are not allowed to provide architectural services. The purpose of the law is to prohibit unlicensed companies from entering the construction market and to protect customers. However, the law causes critical problems e.g. low efficiency of production and rent creation. Therefore, we identify problems concerning business boundaries of firms in the construction industry and predict structural changes in the them when they are liberalized. So we surveyed general contractors and specialty contractors in Korea to estimate the effects of the liberalization on the construction industry. Most of contractors point to the enhancement of production efficiency as the motivation to integrate other construction process. If current regulations, which limit firms' decisions on business boundaries, are eliminated, firms will choose optimal business scopes taking into account types of contracts adopted by the Government for public works. Based on the cost/benifit analyses, they will decide whether to intergrate other production processes or not.

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Improvement method of process management on new han-ok style public building project (신한옥형 공공건축물 실증구축사업의 작업진도 분석 및 공정개선 방안 - 신한옥형 공공건축물 실증구축 현장 3개를 중심으로 -)

  • Seo, Jung-Seung;Kim, Young-Hoon;Kwak, Dong-Yeob
    • KIEAE Journal
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    • v.17 no.3
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    • pp.133-140
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    • 2017
  • Purpose: The construction of New Han-ok style public buildings is a construction that can not be seen in traditional Han-ok, and it is a construction that combines traditional wooden structure, RC structure, and steel structure. Therefore, construction different from general construction is complicated and complex. It is necessary to accurately understand the construction method of each field rather than the general construction management method and study the method suitable for New Han-ok style public buildings. Also, since the New Han-ok style public building business is the first business to be introduced in Korea, new process management is needed rather than general process management. Method: The research method is as follows. Analyze process management through theoretical considerations and analyze the differences from general construction projects. Next, we want to identify the characteristics and problems of the process control method applied to real cases. Finally, the results of this analysis suggest ways to improve process management. Result: Therefore, it is necessary to establish a precise plan from the basic design to the construction of the public building construction management. In addition, careful planning should be made so that the supply and demand of materials and the supply and demand of personnel can be achieved smoothly.

Prediction Survey on Construction Guarantee Market Due to the Restructuring of the Construction Industry's Production System (건설산업 생산체계 개편에 따른 건설보증시장 변화 예측 조사)

  • Kim, Sungil;Chang, Chulki;Yoo, Hyunji
    • Korean Journal of Construction Engineering and Management
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    • v.22 no.1
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    • pp.63-71
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    • 2021
  • The construction guarantee market is a rear market affected by changes in the construction industry and market. As the restructuring of the construction industry's production system is being carried out, such as the abolition of regulations on business field between general and specialty contractors, major changes are expected not only in the construction market but also in the construction guarantee market. In construction guarantee market, there are currently three Contractor Financial Cooperatives, which are divided based on business field and business type(General, Specialty and Plant & Mechanical). The abolition of business field regulation will have various effects on construction guarantee market, such as forming a competitive structure among the three Contractor Financial Cooperatives. Therefore the role of the construction guarantee institutions are also required to change. This study predicted the changes in the construction guarantee market after the restructuring of construction industry and analyzed the ripple effect on the market. This study reviewed the details of the reorganization plan on the construction industry, policies and statistical data related to construction guarantee, and lastly conducted the survey on each member of the three Contractor Financial Cooperatives to analyze the usage behavior in the future guarantee market. Based on the result of this study, the members of both the General Contractor Financial Cooperative and Specialty Contractor Financial Cooperative are not willing to change the existing institutions, but a lot of them are expected to use other institutions in duplicate. The members of the Plant & Mechanical Contractor Financial Cooperative are most willing to use other guarantee institutions.

A Study on Competitiveness Changes of Specialty Construction Firms Under No Restriction in General and Specialty Contracting (겸업제한 폐지에 따른 전문건설업체의 경쟁력 요소 변화에 관한 연구)

  • Choi, Sang-Beum;Park, Hee-Taek;Park, Chan-Sik
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2008.11a
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    • pp.619-623
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    • 2008
  • Recently, the restriction of contracting business between general and specialty contractors are deregulated, which means the elimination of the traditional market entry block in the Korean construction industry. It could be a threat and/or an opportunity to construction firms, and requires establishing new business strategies in order to obtain relative competitiveness between the general and the specialty. Under this change in the industry, this research performed to provide some suggestions for specialty firms in setting up their new business strategies by analyzing various changes of their competitiveness elements. This study extracted 20 core competitiveness elements from major 6 competitive categories required in doing specialty contracting business, and their relative importance between the 20 elements were measured. It was found that the specialty's relative competitiveness has been greatly changed and affected by the deregulation of the protective business restriction.

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Forecasting the Changes in Construction Market by Analyzing General·Specialty Contractors' Perception on Business Area Abolition (종합·전문건설사업자의 상호시장진출 의향 및 참여방식 분석을 통한 종합·전문간 업역철폐에 따른 건설시장 변화 예측)

  • Kim, Sung-Il;Chang, Chul-Ki
    • Korean Journal of Construction Engineering and Management
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    • v.24 no.2
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    • pp.88-97
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    • 2023
  • The purpose of this study is to forecast future changes in the construction market following the reorganization of the construction production system by analyzing the possible market size in which general contractors and specialty contractors may participate in each other, and by carrying out a survey. The ratio of correlation between general construction and specialty construction industries was derived by analyzing the relevance of work area of general contractors and specialty contractors, the similarity of registration standards, and the market in which general contractors and specialty contractors may be able to mutually participate. In order to overcome the limitation of previous studies which analyze the changes in construction market based on the statistical data, and to analyze in more detail the impact of reorganization of construction production system from market participants' view, a survey targeting general contractors and specialty contractors for their willingness and method of participating in the mutual market was conducted. As a result of the survey, it was found that 52% of general contractors were willing to participate in the specialized construction market and 55.1% of specialty contractors were willing to participate in the general construction market. It was found that there was a high willingness to participate in the earthworks, reinforced concrete works, facility maintenance and management, water and sewage facility works, and interior works, and high competition is expected for projects with a scale of 500 million to less than 3 billion won. Through this study, it will be possible for general and specialty contractors to understand the changes in the construction market due to the reorganization of the construction industry production system, and to respond effectively to these changes.

Opportunities for Synergistic Collaboration between U.S. and Asia in Construction Business, Research, and Education

  • Liu, LiangY.
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.3-8
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    • 2007
  • "The world is flat" as the popular author Thomas L. Friedman declares in his best belling book about the progress of business globalization in the $21^{st}$ century [3]. Construction projects and related businesses have been global since the 1800's, but it has never seen such rapid transformation in both scope and depth as in the past decade. Construction projects today often bring together international design talents, construction management firms, local and international labor forces, and global suppliers. On a visit to Dubai in the United Arab Emirates on the Persian Gulf, a person will experience the complexity of globalization of modern construction projects- with Arab owners, European engineering and design companies, American construction management teams, Korean general contractors, Jordanian subcontractors, and labor forces from Thailand, Indonesia, Turkey, and Sri Lanka. A count of material suppliers reveals over 60 countries involved, covering all continents. Indeed construction projects are getting more and more complex and competitive, as is the project execution. The trend toward globalization poses both challenges and opportunities to construction and engineering companies competing on a global scale. While global competition may be a threat to many companies, there are, however, many opportunities for synergistic collaborations that can create win-win scenarios for construction business, research, and education. This paper presents some of the opportunities between the U.S. and Asia in business integration, research collaboration on technologies, and educational development, which may mutually benefit countries on either side of the Pacific.

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An analysis on the International Construction Market and the Business Performance of Top Contractors after the Global Financial Crisis

  • Sung, Yookyung;Choi, Seok-In
    • International conference on construction engineering and project management
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    • 2015.10a
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    • pp.736-737
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    • 2015
  • In these days, international construction market including construction companies has much grown due to globalization and economic boom in the mid 2000's. The size of international construction market, measured with overseas revenue of 225 construction firms, has expanded 2.7 times from 2003 to 2008 according to the ENR. However, after the global financial crisis of 2008 it has faced condition of low growth. In this research, major changes of international construction market and top contractors have been studied. In this study, changes of international construction market have been analyzed in the aspect of region and product including general buildings, transportation, petroleum, etc. Then, in order to find the changes of top contractors which obtained good accomplishment, business performance of companies have been examined by the compound annual growth rate, profit margin and international revenue by comparing the data before 2008 and after. The purpose of the study is to understand major changes of international construction market. Also, strategy changes of top contractors against market stagnation, profit depreciation, high competition have been inferred through the study. The result of the study would contribute to analyzing the strategies of construction companies in international market.

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