• Title/Summary/Keyword: pay adjustment

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A STUDY ON THE INTRODUCTION OF THE PAY ADJUSTMENT SYSTEM FOR THE VOLUNTARY ASSURANCE OF QUALITY BY THE CONTRACTORS

  • Byung-Ok Noh;Sang-Beom Lee;Jai-Dong Koo
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.521-525
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    • 2011
  • Although the Korean construction industry has risen rapidly, the quality of the buildings is not met with the industry standard compared to the potential of the technology development and the cost of maintenance has been increased. The user's request for quality have been increased, but in the current building construction, the contractors only follow the specifications of design, material and technology, and their main concern is whether they are in right track with the specification or not. Thus, the necessity of developing technology has been ignored and sufficient opportunities for the development have not been provided as well. In the developed countries, in contrast, the quality assurance and the payment regulation system has been utilized for the active response to the changes of users' request. As a result of this, the maintenance cost has been decreased and the development of construction technology has been improved. Therefore the pay adjustment system is needed to create the improvement of the quality of the buildings by the contractors' earnest building construction. In order to introduce the pay adjustment system suitable to the Korean construction industry, this study presented the logical method of adjusting the construction cost and making payment with the pay adjustment index that is created based on the result of the performance test, after making a set of the indicators of the building performance standard and applied them to the targeted building.

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LCCA-embedded Monte Carlo Approach for Modeling Pay Adjustment at the State DOTs (도로공사에서 생애주기비용을 사용한 지급조정모델 개발에 관한 연구)

  • Choi Jae-ho
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • autumn
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    • pp.72-77
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    • 2002
  • The development of a Pay Adjustment (PA) procedure for implementing Performance-related Specifications (PRS) is known to be a difficult task faced by most State Highway Agencies (SHAs) due to the difficulty in such areas as selecting pay factor items, modeling the relationship between stochastic variability of pay factor items and pavement performance, and determining an overall lot pay adjustment. This led to the need for an effective way of developing a scientific pay adjustment procedure by incorporating Life Cycle Cost Analysis (LCCA) embedded Monte Carlo approach. In this work, we propose a prototype system to determine a PA specifically using the data in the pavement management information systems at Wisconsin Department of Transportation (WisDOT) as an exemplary to other SHAs. It is believed that the PRS methodology demonstrated in this study can be used in real projects by incorporating the more accurate and reliable performance prediction models and LCC model.

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An Exploratory Study on the Effect of Price as an Anchor on Willingness-to-pay: Anchoring-and-adjustment or Selective Accessibility

  • Song, Jae-Do
    • Asia Marketing Journal
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    • v.18 no.4
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    • pp.27-49
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    • 2017
  • The two competing underlying mechanisms of anchoring, anchoring-and-adjustment and selective accessibility, have very different managerial implications for the effect of price as an anchor on willingness-to-pay (WTP). To clarify their relative roles in inducing the anchoring effect, path analysis modeling in which two paths are included in a single model was utilized. The first path proceeds directly from anchor price to WTP, representing anchor-and-adjustment. The second path, representing selective accessibility, includes a mediator formed by various explanatory variables of WTP. The results consistently show that only the direct path, anchoring-and-adjustment, is significant. The results also show that the level of available product information has no significant moderation effect on both of the paths, which implies the robustness of the result with respect to information level.

An Evaluation on Quality of Field Trial Protocol using Pay Factor and Analysis of Fatigue Life (지불계수를 이용한 시험포장구간의 품질평가와 피로수명 분석)

  • Lee, Jae-Hack;Rhee, Suk-Keun;Kim, Seong-Min;Hwang, Sang-Min
    • International Journal of Highway Engineering
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    • v.11 no.4
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    • pp.133-142
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    • 2009
  • This research is performed to estimate quality of trial pavement for construction and analyze effect of fatigue life by using the pay factor. Specially, asphalt content which is difficult to control the pavement quality, is selected by pay adjustment standard factors and pay factor is calculated by asphalt content. This research is also analyzed to present relation of fatigue life according to asphalt content, to evaluate quality of the road pavement by calculating pay factor of sampling trial field mixture 2 times. This research confirms that it is different quality of road pavement according to pay factor changes. To analyze the fatigue life of pavement by using asphalt mixture for trial field. As a result, it is conformed that high pay factor could be high fatigue life of trial field. This means that pay factor using probability theory reflects road pavement fatigue life. Also, this study is included that beam fatigue test manufacturing specimen such as mixing type of plant which purvey asphalt mixture to trial field, compared with fatigue life of trial field. As a result, the fatigue life of specimen that is manufactured by mix type is higher than trial field specimen. This means that performance of road pavement can be reduced by gradation or other effects. Therefore, to exactly evaluate the quality of road pavement, pay factor should be calculated appling various pay adjustment standard factors such as gradation, air-void in U.S. states which is adopted pay adjustment.

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Adjustment of Contract Price according to Introduction of Pay Adjustment (건설공사 지불규정제도 도입에 따른 공사비조정방안)

  • Lee, Sang-Beom
    • Journal of the Korea Institute of Building Construction
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    • v.10 no.1
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    • pp.175-180
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    • 2010
  • Despite continuous efforts by the construction industry to achieve better quality, it doesn't seem that much has been improved. This is mainly because current specifications do not satisfy a change in the market environment, which is that a higher level of quality is now demanded by users. Quality improvement efforts have been satisfied merely to meet specifications. On the other hand, advanced countries have been experienced great success in their construction techniques and have reduced costs by introducing apay adjustment system to the construction industry, in which compensation is based on performance. Following their example, Koreashould introduce such a pay adjustment system in order to motivate the members of our construction industry to achieve better quality and a higher level of construction techniques. However, there has been a lack of a rational approach to the development of a system for cost coordination, as well as performance and quality inspection. Thus, in this study a legal and logical plan was developed that can be used to adjust the construction cost, along with the performance inspection of quality results, in order to introduce a pay adjustment system that is appropriate for domestic regulations.

Comparison Analysis between PWL and Probability Theory for Quality Measurement of Asphalt Pavement (아스팔트 포장의 품질측정을 위한 확률이론과 PWL방법의 비교 분석)

  • Choi, Jang-Kyu;Rhee, Suk-Keun;Kim, Seong-Min;Hwang, Sang-Min
    • International Journal of Highway Engineering
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    • v.11 no.2
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    • pp.27-35
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    • 2009
  • This study was conducted to suggest resonable quality measurement methods of asphalt pavements to be used in the Pay adjustment. The Pay adjustment is a method to adjust the construction cost according to the pavement quality based on the statistic theories. Many U.S states use Pay adjustment and the PWL(Percent with in Limit) is calculated using their quality index tables. In this study, the application of PWL in Korea was evaluated by comparing the PWL South Carolina with the probability theories. The probability values and the PWL obtained using the data collected from the test roads were used to determine the pay factors suggested by AASHTO and the pay factors between them were closed to each other. In addition, the PWL was very similar to the probability obtained using the predicted average of the population when calculating the Z-values. The pay factors were obtained using artificial data whose average satisfied the codes and whose standard deviation was large. The pay factors were less than 100% in the quality measurements can be performed using the PWL methods, and with the development of the korea quality index table, the PWL methods can be applied in korea.

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Methodologies to Develop Payment Adjustment Regulations for Quality Control and Assurance of Concrete Pavements (콘크리트 도로 포장의 품질 관리 및 보증을 위한 지불규정 개발 기법)

  • Kim, Seong-Min;Rhee, Suk-Keun;Seo, Bong-Kyo
    • International Journal of Highway Engineering
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    • v.10 no.3
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    • pp.179-188
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    • 2008
  • This study was performed as part of the development of the payment adjustment regulations for ensuring high performance of concrete pavements. The objectives of this study were to develop the reasonable quality measurement approaches for the implementation of the payment adjustment regulations and to propose the methods to determine the quality dependent pay factors. First, by using the statistics the slab thickness measurement data was analyzed and the methods to determine the allowable measurement errors, the proper measurement spacing, and the selection of the measurement location were proposed. In addition, to suggest the reasonable methods to determine the pay factors, by using the data of the slab thickness and concrete flexural strength, the pay factors based on the PWL(Percent Within Limits) method used in the USA were compared with those obtained considering the normal probability distribution and t distribution. Finally, the most appropriate method to determine the pay factors was proposed.

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Application of Pay Adjustment Regulation for Highway Flexible Pavements (도로 포장의 초기상태에 따른 공사비 차등지급규정의 시험적용)

  • Seo, Young-Guk
    • International Journal of Highway Engineering
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    • v.11 no.3
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    • pp.111-120
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    • 2009
  • Recently, pay adjustment regulation (PAR) has been developed to induce better performing road pavements around the country. This regulation was successfully applied during rehabilitation of highway flexible pavements for the first time, and their results are the focus of this paper. For highway pavements, a lot has been defined by typical amount of works a day. This lot was further divided into several sublots depending on field conditions. According to AASHTO Quality Assurance Guide Specification, pay factors for each lot were statistically determined with field measurements of five performance indicators. And composite pay factors were calculated by accounting for the impact of individual performance indicators on a long-term performance of pavement. In 2008, the PAR was tested with asphalt overlays conducted at all six local headquarters of Korea Expressway Corporation. Also, concerns raised during implementation are discussed in this paper. Limited data used in this study showed that if all performance indicators fall within the construction limits with less variances final construction costs may increase by 50%, whereas 10% reduction in construction costs could be necessary if key performance indicators such as density do not meet the construction quality requirements.

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