• Journal of The Korea Institute of Healthcare Architecture
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• v.27 no.2
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• pp.7-14
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• 2021

Purpose: The purpose of this study is to provide an effective construction project cost estimation tool for preparing a business plan of healthcare facilities which can be practically used for development projects. Methods: In order to provide a tool for calculating construction project costs, this study analyzed the Building and Related Laws, the Building Technology Promotion Laws, the Ministry of Land, Infrastructure and Transport notifications and directives, the Ministry of Trade, Industry and Energy notifications, the detailed guidelines of the Ministry of Strategy and Finance, the Building Service Industry Promotion Acts, various certification standards, actual project budget calculation cases, etc. with advices from related experts. Results: 1) Construction cost is classified into construction costs, architectural design costs, supervision costs, incidental costs, and each sub-element. In particular, since there are many incidental cost items, essential items to be reviewed during planning are derived and costs are calculated according to appropriate consideration criteria. 2) Criteria for Payment calculation mainly applies the construction cost rate method or the actual cost fixed amount method in consideration of the characteristics and scope of work. Implications: There are many calculation factors that need to be applied to the construction project cost. Therefore, it is necessary to organize the calculation process more clearly.

• Korean Journal of Construction Engineering and Management
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• v.18 no.2
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• pp.30-37
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• 2017

In Korea, additional indirect costs generated from the time period extension of public construction projects have been studied. Practical claims against such costs are increasing. There are no clear criteria for calculating the delay cost caused by the extension, and thus calculation methods differ across entities. Logical valid calculation methods have also not been researched. Further, there are no Korean studies on the additional indirect cost caused by a suspension in a public construction project on a long-term continuing contract. The purpose of this research is to propose a method of calculating the indirect cost incurred by construction time extension that reflects the characteristics of Korean public construction projects. The cost patterns generated during construction periods were analyzed, and then the current criteria of calculating the indirect costs caused by the extension were examined. Following this, actual conditions and practices in the field were surveyed and the current calculation method was applied to a model case to compare the actual cost and that determined from the current calculation method. Issues with the current method were identified by this comparison. Based on this, this research proposes a method of calculating the total actual cost caused by a suspension in a public construction project that is appropriate for calculating the additional indirect cost generated by a suspension in a public construction project on a long-term continuing contract.

• Journal of the Korea Safety Management & Science
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• v.12 no.4
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• pp.145-151
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• 2010

It seems that a primary concern of the project-based company, which provides a large scale product or service over long term period, is to run a successful project through systematic project process control and control costs. One of the typical project control methods is Earned Value Management System(EVMS) which analyses the precess through performance measurement. Even though the EVMS is a highly efficient tool in the managerial aspect, it cannot easily determine the Planned Value(PV), Actual Cost(AC), or Earned Value(EV) due to the indistinct criteria and extensive data. The accurate calculation of AC in particular, is the basic of project management, but most companies record direct personnel expenses or direct expenses only. Since they calculate indirect expenses based on the estimated ratio, it limits the systematic project management that reflects changes in profit and loss of a company. This study introduces a EVMS for project management and its actual case based on EVMS and ERP system which some additional modules are installed for performance measurement. It is expected that this new method enables a company to save time and effort, and also to improve transparency by specifying expense items in detail and to switch quarterly settlement to monthly by reducing the time of calculation.

• Journal of Korean Society of Water and Wastewater
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• v.37 no.6
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• pp.409-423
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• 2023

In this study, we analyzed how the revenue water ratio(RWR) is affected by changes in conditions of the water supply area, such as the ratio of aging pipes, maintenance conditions, and revenue water. As a result of analyzing the impact of pipe aging and maintenance conditions on the RWR, it was confirmed that the RWR could be decreased if the pipe replacement project to improve the aging pipe ratio was not carried out and proper maintenance costs were not secured. It was also confirmed that an increase in the revenue water could be operated to facilitate the achievement of the project's target RWR. In contrast, a decrease in the revenue water due to a population reduction could affect the failure of the target RWR. In addition to analyzing the causes of variation in the RWR, the calculation of estimated project costs was considered by using leakage reduction instead of RWR from recent RWR improvement project cost data. From this analysis, it was reviewed whether the project costs planned to achieve the target RWR of the RWR improvement project in A city were appropriate. In conclusion, the RWR could be affected by variations in the ratio of aging pipes, maintenance conditions, and revenue water, and it was reasonable to consider not only the construction input but also the input related to RWR improvement, such as leakage reduction, when calculating the project cost.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2013.05a
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• pp.210-212
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• 2013

The construction cost estimates during the design phase becomes the standard to judge profitability and validity, and is very important in various decision-makings by project owner. However, since approximate costs are quoted when many parts are undecided in the early stage of project, differences are bound to occur between the construction cost calculated through approximate quotation and that put into construction actually. Also, since in existing quotation works, quantity calculations have been dependent on the staff's manual work, involving error potential, and thus differences are likely in quantity calculation depending on the quotation staff's method of calculation. In this study, the process of creating space model to deduce 3D geometry information for approximate quotation in association with knowledge information and the expression for calculation of finishing area were proposed.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.908-912
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• 2005

Construction Cost Indices are values for measuring fluctuations in direct construction costs which include material costs, labor costs, and equipment costs for construction operations. In Korea, Korea Institute of Construction Technology (KICT) has been assessing and announcing these indices since January, 2004. The main goals of this paper are to look over the calculation process for those indices and then present the trend in construction costs according to the types of facilities with the past construction cost index data. Also, this paper traces the origin of the occurrence of significant changes on those indices through the further analysis of the trend. In addition, this paper shows the practicality of the indices and the way how to put them to practical use. An alternative estimate method using the indices is suggested for compensating the changes of construction costs caused by price fluctuations.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2020.06a
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• pp.155-156
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• 2020

Unlike new construction projects, road paving maintenance work shows large productivity discrepancies depending on the conditions of the worksite. The current construction cost calculation scheme, however, only provides daily construction volume categorized by work scope and scale: There are no detailed standards that can be implemented on various types of worksites. To develop standards that enable the calculation of appropriate construction costs by taking into account worksite conditions, the current study conducted on-site surveys and interviews. The on-site research and analysis revealed that location, construction width, the day's worksite lot, work scope, and construction objectives were found to cause differences in construction volume. In addition to the existing work scope and work scape variables, the current study added weight constants reflecting the daily work volume based on movement conditions at site and the size of the worksite lot. In this process, the current study found that even one type of construction project can have fifteen different levels of daily construction volume. Such detailed classification was deemed to enable the proper calculation of construction costs based on worksite conditions.

• International conference on construction engineering and project management
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• 2007.03a
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• pp.30-40
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• 2007

The demand for light-rail construction projects has recently been increasing, and they are mostly supervised by private construction companies. Therefore, a private construction company that aim to raise gains from the operation of the facilities during the contract period greater than what they invested should b able to accurately calculate the costs from the aspect of Life Cycle Cost (LCC). In particular, a light-rail transit bridge that has a heavier portion from the aspect of the cost of light-rail transit construction requires a more accurate calculation method than the conventional LCC calculation method. For this, an LCC analysis model was developed and a cost breakdown structure was suggested based on literature review. The construction costs by shape of the upper part of a light-rail transit were calculated based on the cost breakdown system presented in this paper, and the cost generation cycle and cost unit price were collected and analyzed based on records on maintenance costs, rehabilitation and replacement. In addition, after forming some hypotheses in order to perform the LCC analysis, economic evaluation was conducted from the aspect of the LCC by using performance data by item.

• Journal of the Korea Institute of Building Construction
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• v.9 no.1
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• pp.65-73
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• 2009

Looking at current construction costs estimations of publicly declared public works, there are many instances where estimation criteria are ambiguous and doesn't imply the reality. Up to date, estimation criteria for calculating construction cost estimations are simply by unit area multiplication and stochastic construction cost estimation. However, possibility of making errors are high due to using uniform data that excludes each public work's specifications and environmental conditions. Further, on the aspect of cost management, there is certain limitation in the efficiency of cost management in order-placing stage and commencing-work stage; while efficient cost management and reduction of expenses are highly possible during initial stages of the project. In this respect, the paper adopts positive approach with regards to construction cost estimations of public works and draws common elements from calculation tables of the construction cost estimations from 3 completed domestic construction works; after which, the paper analyzes whether business exposition, construction guide and publicly-declared estimated construction costs that the orderer issued are calculated economically and properly; deducing problems in the process, the paper seeks to recommend rational calculation method on this.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.12
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• pp.653-659
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• 2018

The accurate prediction of construction cost is a key factor in a project's success. However, it is hard to predict the construction costs in the planning stages rapidly and precisely when drawings, specifications, construction cost calculation statements are incomplete, among other factors. Accurate construction-cost prediction in the planning stage of a project is also important for project feasibility studies and successful completion. Therefore, various techniques have been applied to accurately predict construction costs at an early stage when project information is limited. There are many factors that affect the construction cost prediction. This paper presents a construction-cost prediction method as multiple regression model with seven construction factors as independent variables. The method was used to predict the construction cost of a local housing union project, and the error rate was 4.87%. It is not possible to compare the cost of the project at the planning stage of the local housing union project, but it has high prediction accuracy compared to the unit price of an existing unit area. It is likely to be applied in construction-cost calculation work and to contribute to the establishment of the budget for the local housing union project.