• Korean Journal of Construction Engineering and Management
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• v.7 no.6
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• pp.132-140
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• 2006

On December, 1996, Construction Management(CM) was introduced in Korean construction industry due to its managerial efficiency proven in the international construction industries. However, It have had serious problems with many regulations, standards, manuals and details of practices considering its constituents and industry conditions. Especially, there were controversial points in the CM fee estimate; difference between the fee on the owner's view point and that from contractor's that impedes appropriate CM services. Therefore, this paper is to analyze public construction projects into Cm fee calculation such as fee as a percent of construction cost, cost plus fixed fee and contract price, and analyzed what is irrationality and why irrationality is made. So it makes a contribution to a study on standards for paper CM fee calculation.

• Korean Journal of Construction Engineering and Management
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• v.9 no.1
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• pp.96-106
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• 2008

The Korean Construction Industry significantly contributed to the Korean economic development not only by preparing the domestic infrastructure but also by successfully conducting various international projects. However, major incidents such as the collapse of Sung-Su Bridge and Sam-Pung Department Store along with stagnation of Korean Economy have raised questions about underlying systematic problems of the Korean Construction Industry. As a solution to resurrect the Korean Construction Industry, the Construction Management (CM) system introduced in late 1990's and increasingly utilized as an innovative delivery system. Despite of the fast growth of CM, the performance of CM has not been up to the hype and low CM fee has been identified as one of the main reasons of unsatisfactory CM performance. Therefore, this research attempted to propose ways of improving 'CM Fee Guidelines' published by Korean Ministry of Construction and Transportation by conducting a benchmarking study on Global Standards of estimating CM Fee. International organizations benchmarked in this research include CMAA, ASCE, DOL, DOE, etc. Various investigation and analysis revealed that Korean 'CM Fee Guidelines' need to significantly modified comparing to Global Standards. This research also tried to prepare recommendations to improve the CM deliver system focusing on the 'Method of CM Fee Estimation' and Selection of a CM firm as an owner's agent.

• Korean Journal of Construction Engineering and Management
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• v.13 no.4
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• pp.16-24
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• 2012

The objective of this paper is to suggest the improvement of estimating system for construction management (CM) service fee through the analysis of the previous literatures and criteria and case study. In order to do this, this paper considered the relevance of existing criteria to estimate the CM service fee, the condition of input ratio of engineering resources in the real cases, and current utilization strategy of nonresident technical engineers. Based on the analysis, the following problems were identified; a) the different estimating system for CM fee and construction supervision fee, b) impractical estimating system for the CM fee, and c) inappropriate allocation of human resources for CM. Consequently, this paper suggested the following 4 items for the improvement of the existing system; (1) modification of the current structure of CM fee calculation, (2) rationalization of current level of the CM fee which is required to be raised approximately 5.4 percent compared to design or supervision fee, (3) securement of elasticity of the input ratio of engineering resources from the inception phase, and (4) development of the utilization strategy of nonresident engineers based on the technical requirement of the jobsite. Thus, it is anticipated that this research would affect the compensation package of CM in order to make the estimation process of CM service fee more efficient and to revitalize CM as business.

• Korean Journal of Construction Engineering and Management
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• v.20 no.2
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• pp.105-112
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• 2019

As the Construction Technology Promotion Act was revised in 2015, the term of Supervision was removed and Construction Management was included instead. The consideration of Construction Management shall be based on the cost plus fee method specified in the Criteria for the Cost of Construction Technology Services of the Ministry of Land, Infrastructure and Transport. Nevertheless, it is based on the construction cost ratio in accordance with the Economy and Finance Ministry's Detailed Guidelines for Preparing the 2018 Budget Plan and Fund Management Plan (Manual for Business Type and Item). As a result, it has been expected that Construction Management consideration will be calculated according to a single government standard and that the Criteria will be applied reasonably. In addition, although the change in the Labor Standard Act has a significant effect on the working environment of the construction site, the nature of the construction site is not considered in this Act. Based on these problems, the study suggested that the government should apply a single standard after consultation with the relevant agencies when calculating the consideration for Construction management, that the scope of the Criteria for the Cost of Construction Technology Services should be clear, that the amount of input by the Construction Manager should be considered for the capability of engineers and the number of working days, and that construction characteristics should be considered when determining the number of working days and hours.

• Korean Journal of Construction Engineering and Management
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• v.20 no.3
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• pp.22-30
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• 2019

The purpose of this study is to derive basic data of the Guaranteed Maximum Price(GMP) process and to present specimens that can be used at the time of execution of CM at Risk project in South Korea. CM at Risk project is issued in South Korea, but the actual data is lack. On the other hand, CM at Risk project is universalized and the market of the CM at Risk is steadily growing. Because of that, in this study, The United States cases was selected as a sample. GMP consists of CM's fee, CM contingency, project direct cost, project indirect cost, allowance. GMP negotiations are performed before the end of design completion, and after 3 rounds of estimation comparison, preliminary GMP is confirmed. GMP can be multiple contract and it is useful for Procurement of long lead materials and early construction. If the actual cost is lower than expected GMP, sharing of the saving is an option since the conflict of interests between the client and the contractor can occur.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2006.11a
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• pp.45-52
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• 2006

Recently The public project ordering in local autonumous entities is a tendency increasing of CM service because of the visible and affirmative effect in the CM which is advanced meanwhile. And, the CM services of project all phase excepts a planning business are performed. To develop CM must be prepared the system plans concerned with the CM application from planning phase, actuality maintenance of CM fee-estimation standard, understanding conversion of participation subjects, the specialization through certification of CM qualification, etc. But, unexpected actuality the problems occurs when the CM business is performing. The purpose of this study are to present the solution to the problems concerned with the design management, design phase VE, additional business by owner, schedule control and establish the plan to perform CM services efficiently in the public sector through analyzing the case of CM application in Susung Culture & Art Center.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2007.11a
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• pp.32-38
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• 2007

Recently The public project ordering is a tendency increasing of CM service because of the visible and affirmative effect in the CM which is advanced meanwhile. The CM services of project all phase excepts a planning business are performed. But recently the CM services of project all phase including a planning business are increasing every year. To develop CM must be prepared the system plans concerned with the CM application from planning phase, actuality maintenance of CM fee-estimation standard, understanding conversion of participation subjects, etc. But, unexpected actuality the problems occurs when the CM business is performing. The purpose of this study are to present the solution to the problems concerned with the planning business management, additional business by owner, schedule control and establish the plan to perform CM services efficiently in the public sector through analyzing the case of CM application in Daegu Gyeongbuk Institute of Science & Technology.