• KSCE Journal of Civil and Environmental Engineering Research
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• v.33 no.4
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• pp.1707-1718
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• 2013

Historical cost data estimating system has been introduced since 2004 in the construction industry. Based on contract prices of past projects, this estimating system estimates construction cost according to work types. The Korea Institute of Construction Technology (KICT) announces the historical cost data twice a year annually. The unit price of a small construction project is higher than large construction project due to the increase on production cost per work unit, equipment and labor cost, etc. However, the historical cost data estimating system is applied to project estimation uniformly regardless the construction project's size. This study compared and analyzed the historical cost data of large and small construction project to indicate the problem of historical cost date estimating system. The study derived that the unit price of a small construction project is 21.8% higher than that of large construction project.

• Journal of the Korea Institute of Military Science and Technology
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• v.15 no.5
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• pp.565-576
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• 2012

Cost estimates are necessary for government acquisition program to support decisions about funding, to develop annual budget requests and to validate resource requirements at key decision points. Many researches have been done about cost estimating technique recently. Parametric cost estimating models based on CERs(Cost Estimating Relationships) have been mainly used using regression method with historical data. However, there are many restrictions in developing Korean version CERs because the number of data points are too small. Specially, data collection and data management system are unstable in Korean defense environment, when developing CERs. In this research, we analyzed the historical data, and found some cost drivers in guided weapon system area. We developed the Acquisition Unit Cost CER using the regression to remove multicollinearity in the historical data. So we could overcome the restriction of the insufficient sample number. This research as a first attempt is meaningful in terms of obtaining our own Acquisition Unit Cost CER using historical cost and physical characteristic in Korean development environment.

• Journal of the Korea Institute of Building Construction
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• v.4 no.4
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• pp.117-126
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• 2004

Construction industry is faced with the problems such as the quickly changeable circumstance and increasing construction companies due to regulation mollification of company registration. In order to overcome these problems, new estimation system based on historical estimation cost is ready to introduce by government step by step. But the time of transition for estimation system causes another problems such as chaos addition to simultaneity of a standard of estimation system and new estimation system, lack of related regulation, accumulation of historical extensive cost data, and adjustment methodology when historical estimation data is applied to next projects. The purpose of this study is to suggest the change factors by activities for estimating historical cost for apartment housing projects. New estimation system is based on historical construction data. For application of this system, the standard adjustment methodology system is necessary. and extensive cost data should be accumulated under an unified construction work classification system. Therefore in this study, according to the construction work classification system, every apartment housing project was classified to 16 work classifications, and 7 major composed items which occupy more than 85% of construction costs are analyzed by detailed activities and by average ratio and maximum ratio each of them. In the result of the study, furniture work, foundation work and masonry work are the works which have big gap of costs between average ration and maximum ratio. In addition to suggestion of change factor by work species, 5 qualified construction specialists are interviewed and change factors in 7 major works are analyzed.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.33 no.3
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• pp.55-62
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• 2010

Currently, cost estimation is very important to the government acquisition programs to support decisions about funding and to evaluate resource requirement as key decision points. Parametric cost estimating models have been used extensively to obtain appropriate cost estimates in early acquisition phase. However, they have many restrictions to ensure the cost estimating result in Korean defense environment because they are developed in the U.S.A. environment. In order to obtain a good R&D cost estimate, developing our own CERs (Cost Estimation Relationships) using historical R&D data is essential. Nevertheless, there has been little research to develop our own CERs. In this research, we established a CER development process and found some cost drivers in the historical movement weapon system R&D data. The R&D CER is developed using the PCR(Principle Component Regression) method to remove multicollinearity among data and to overcome the restriction of the insufficient number of sample. At least, this research is meaningful as a first attempt in terms of defining the CER development process and obtaining our own R&D CER based on the historical data in Korean weapon system R&D environment.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.1201-1208
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• 2009

A making a decision of construction cost has important meaning and function for both contractor and owner in construction projects. Especially, it should be premised that estimating the construction cost in efficient and rational way in public construction, which is invested by government funds, for efficient execution of the budget and investment as a side of government. The systematic methodology for estimating construction cost approximately of a river facility construction project has not yet been established because of its unique characteristics including its relatively small project size in terms of cost. On this study, It collect and analyze a river facility construction historical cost data for develop an approximate cost estimating model for river applied by typical embankment section method and rate application of the others activity type. And it verify suitability of model through a that result of application of real river facility construction statement at developed model. By this study, it is expected to reasonable and systematic estimating construction cost through application of developed model.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.28 no.3D
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• pp.371-381
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• 2008

The systematic methodology for estimating construction cost approximately at planning and pre-design phase of a river facility construction project has not yet been established because of its unique characteristics including its relatively small project size in terms of cost. This research suggests a 4-level cost information structure and identifies critical factors affecting construction cost as a result of thorough analysis of accumulated historical cost data of river facility construction projects. Also, this research presents the framework of the approximate cost estimating methodology for river facility construction project a planning stage.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.488-493
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• 2013

Accurate initial cost estimates are essential to effective management of construction projects where many decisions are made in the course of project management by referencing the estimates. In practice, the initial estimates are frequently derived from historical actual cost data, for which standard distribution-based techniques are widely applied in the construction industry to account for risk associated with the estimates. This approach assumes the same probability distribution of estimate errors for any selected estimates. This assumption, however, is not always satisfied. In order to account for the probabilistic nature of estimate errors, an alternative method for measuring the risk associated with a selected initial estimate is developed by applying the Bayesian probability approach. An application example include demonstrates how the method is implemented. A hypothesis test is conducted to reveal the robustness of the Bayesian probability model. The method is envisioned to effectively complement cost estimating methods that are currently in use by providing benefits as follows: (1) it effectively accounts for the probabilistic nature of errors in estimates; (2) it is easy to implement by using historical estimates and actual costs that are readily available in most construction companies; and (3) it minimizes subjective judgment by using quantitative data only.

• Journal of the military operations research society of Korea
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• v.25 no.2
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• pp.44-61
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• 1999

Cost estimation has posed a significant challenge to estimators, planners, and managers in both government and military. Considerable historical evidence shows that accurate cost estimation has been difficult to achieve across a wide range of projects, including weapon systems. This paper introduces new cost estimating concept, CAIV(Cost As an Independent Variable) and a cost estimating case study using PRICE model, computer aided parametric estimating models(CAPE) for K1 tank cost estimate. CAIV concept is to set realistic but aggressive cost objectives easily in each acquisition program and to achieve cost, schedule, and performance objectives considering various managing risks with a project manager and industry teams. The Price model is one of computer aided cost estimating models and widely used in U.S. defense system analysis as a tool for CAIV. We analyze theories, inputs, outputs of the PRICE model and present a case study for K1 tank to estimate costs in requirement and concept phase, program and budgeting phase, and life cycle phase. Finally we obtain results that the Price model can be used in various phases of PPBEES depending upon available data and time.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.176-181
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• 2011

A role of cost modeler is that of facilitating design process by the systematic application of cost factors so as to maintain sensible and economic relationships between cost, quantity, utility and appearance. These relationships help to achieve the client's requirements within an agreed budget. The purpose of this study is to develop a parametric cost estimating model for the early design stage by using the multi-dimensional system of OLAP (On-line Analytical Processing) based on the case of quantity data related to architectural design features. The parametric cost estimating models have been adopted to support decision making in the early design stage. These models typically use a similar instance or a pattern of historical case. In order to effectively use this type of data model, it is required to set data classification and prediction methods. One of the methods is to find the similar class in line with attribute selection measure in the multi-dimensional data model. Therefore, this research is to analyze the relevance attribute influenced by architectural design features with the subject of case-based quantity data used for the parametric cost estimating model. The relevance attributes can be analyzed by Analytical Characterization. It helps determine what attributes to be included in the OLAP multi-dimension.

• Journal of the Korea Institute of Building Construction
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• v.5 no.1 s.15
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• pp.111-121
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• 2005

This study purposed to derive a model to estimate appropriate construction costs for the application of the estimation system based on historical construction data. For this purpose, it analyzed data ($1999\sim2004$) on the construction costs of reinforced concrete apartments (Long-Lamina-type apartments), which have been highly standardized and have a lot of relevant objective data using statistical analysis techniques and developed an estimation model.