• Title, Summary, Keyword: Turnkey

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The Study on Problems in Bidding Guideline and Suggestion for Improvement in Architectural Turnkey project in Construction - Focused on Preventing Claim- (건축턴키공사 입찰안내서의 문제점과 개선방안에 관한 연구 - 클레임예방을 중심으로 -)

  • Yoon Jun-Seon
    • Journal of Arbitration Studies
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    • v.15 no.3
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    • pp.303-324
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    • 2005
  • Turnkey project in construction which accounts for about $10\%$ of the total annual construction orders in the nation is expected to grow in size as an effort to strengthen international competitiveness and improve quality of construction work. However, problems of turnkey project in construction raise concern for many possible cases of possible claims. Based on the understanding that bidding guidelines which plays a critical role in turnkey project in construction actually contain some unequal clauses and causes for problems which undermine development of turnkey construction and further create possible cases of claims, the paper aims to identify and analyze the unequal clauses and problems contained in the guidelines in order to make suggestions for improvement. Among all the turnkey construction orders that has been placed since 2000 when domestic turnkey project in construction became relatively formulated, 13 constructions costing more than 50 billion won were selected for this study since their construction scale were large enough that the bidding guidelines for them were regarded as containing little difference among one another. In order to enhance construction technology and to prevent claims while trying to achieve the original purpose of Turnkey system, the parties involved in or schedule to take part in Turnkey project including ordering institution, Construction Company and Design Company should make an effort to have more reasonable bidding guidelines drawn up.

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A Study on Some Issues of Business and Law in relation to ICC Model Turnkey Contract - Focusing on ICC Model Contract for Turnkey Supply of Industrial Plant (ICC모델 턴키 계약의 쟁점에 관한 연구 - ICC Model Contract for Turnkey Supply of Industrial Plant를 중심으로 -)

  • Kim, Kyoung-Ok;Kim, Dae-Hwan
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.54
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    • pp.189-209
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    • 2012
  • This Work intends to study on some issues of business and law in relation to Contract for Turnkey Base System. The continuing advance of export system of the plant with the importance for efficient and effective management emphasizes the need for business and legal approach to uniform international model contract. ICC Model Contract for Turnkey Supply of Industrial Plant by ICC covers a particular category of turnkey contract, i.e. contracts for the supply of a plant or production line to be erected within facilities which already exist or which are constructed by the purchaser. Furthermore, the application of the ICC Model Contract for Turnkey Supply of Industrial Plant leaves much to be desired from a business and legal point of view. Therefore, there would appear to be room for compromise between the supplier and purchaser in respect to make a contact for Turnkey supply of industrial plant.

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A Study on the FIDIC's Conditions of Contract for EPC/Turnkey Projects (FIDIC의 EPC/Turnkey 프로젝트용 표준약관(標準約款)에 관한 연구(硏究))

  • Choi, Myung-Kook
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.18
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    • pp.189-218
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    • 2002
  • The EPC/Turnkey Contract goes to the extreme in allocating risks to the contractor and depending on the types of project, this may be regarded as unacceptable. It has also gone to the extreme in the extent to which the contractor is responsible for the specification and design of the Works. The employer is not responsible for correctness of any information provided by him nor for correctness of any specification or other matter included in the Employer's Requirements, except the definition of the intended purpose and criteria for testing and performance. With such conditions it is surprising that the employer is entitled to interfere in the contractors performance to an extent that is close to what is norm for a construction contract with employer design and with normal risk allocation. The combination of risk allocation and inappropriate administrative provisions makes the EPC/Turnkey Contract a document that will meet severe resistance from contractors. It is also likely that employers will see the risks and difficulties from their own perspective. It is a fiction that the EPC/Turnkey Contract will give the employer a contact with a certainty of final price and completion date. It is not a fiction that the EPC/Turnkey Contract carries many seeds for disputes between the parties. The Orange Book has become an accepted document even if it clearly contains some weaknesses. Some of these have been corrected in the Plant Contract. In my opinion FIDIC should let users become more familiar with the Plant Contract as a follow up to the Orange Book.

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Risk Assessment for the Converted Lump-sum Turnkey Project (전환 정액일괄도급 계약방식 프로젝트의 리스크 분석)

  • Hwang, Duk-Jin;Moon, Seung-Jae;Yoo, Ho-seon
    • Plant Journal
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    • v.7 no.2
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    • pp.39-43
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    • 2011
  • Due to the recent uncertainty of market situations such as the escalation of petroleum prices, increased production capacities of plants, limitations of the available EPC (Engineering, Procurement, Construction) contractors, and the increase of raw material prices, EPC contractors have had a tendency to include a higher reserve contingency in the lump-sum turnkey contract price. In order to overcome the changes in the market, the plant project construction industry has started to apply the converted lump-sum turnkey contract in plant construction market. This study was focused to find the associated risks and to analyse the identified risks on recent trend of application of the new contract type, which is the converted lump-sum turnkey contract. It was recognized from the analysis that quality and cost have more high priority risks than other project objectives. This paper also suggests the mitigation plan for identified risks to achieve project objectives appropriate to the converted lump-sum turnkey project from the viewpoint of an EPC contractor keeping transparency with owner.

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A Comparative Study on the Orgalime's General Conditions for Turnkey Contracts and FIDIC's Silver Book (ORGALIME의 Turnkey 계약용(契約用) 표준약관(標準約款)과 FIDIC의 Silver Book과의 비교연구(比較硏究))

  • Choi, Myung-Kook;Son, Su-Seok
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.23
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    • pp.129-153
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    • 2004
  • What can easily be concluded is that the Orgalime's General Conditions will be preferred by contractors to the Silver Book. However, it is probable that for some projects the Orgalime's General Conditions will not be acceptable to employers without significant amendment, particularly to such matters as design obligations, limitation of liability, force majeure and possibly the extension of time provisions. It is doubtful, however, whether the Orgalime's General Conditions will prove to be an alternative to the Silver Book. For projects for which the Silver Book was intended, the Orgalime's General Conditions will usually be unacceptable to employers and leaders. Notwithstanding this, the Orgalime's General Conditions is a welcome addition to the ever-growing suite of international contracts. And I strongly suggest that we must prepare our "General Conditions for Turnkey Contracts", etc. reflecting our law and practices as soon as possible.

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Improvement of Procedures on Design Deliberation System for Turnkey and Alternative-Design Contracts (턴키.대안입찰 설계심의 및 평가제도의 개선방안)

  • Park, Hong-Tae;Lee, Yang-Kyoo
    • Journal of the Korean Society for Railway
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    • v.14 no.1
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    • pp.31-38
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    • 2011
  • Turnkey and alternative-design contracts was introduced operation in the country from january 2004 to February 2010. this was introduced operation. The selecting method of contractor for turnkey projects has being operated by an open forum type that consists of technical committee and appraisal committee in an integrated design approach deliberations. But to improve the operation of the problems, the government is operating design review committee consisting of the central, local and special design advisory committee in march 2010. But this system has also been suggested as still problems, too many contracts by large companies, increasing of design cost and excessive competition. This study is intended to contribute that turnkey and alternative-design contracts can be well operated in domestic construction markets. In this paper suggests some improvement methods and operational problems caused from application of an open forum type for selecting contractor of turnkey project.

Case Study in Current State of Amount of Order for Turnkey Project (설계 $\cdot$ 시공일괄입찰제도의 수주현황 사례분석)

  • Lee Yang-Kyoo;Kang Leen-Seok
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • pp.197-202
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    • 2004
  • Turnkey contract system is an effective ordering system for the organizations that technical engineers are insufficient in their construction projects. It is possible to reduce project duration and to improve project Quality in an integrated contract system between design and construction. However, owners can have a difficulty caused from unitary responsibility system. This study analyzes present situation and problems of turnkey contract system in our country. The results includes various methods for improving the system based on the analysis of bid price nd selection procedure.

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The Study of Quality Control in Engineering on the Turnkey Project(Focus on Change Orders at the Construction Phase) (턴키공사 설계품질관리에 관한 연구(시공단계의 설계변경을 중심으로))

  • Lee Yong-Jin;Lee Teck-Wn;Kim Jin-Young;Han Choong-Hee;Kim Sun-Kuk
    • Korean Journal of Construction Engineering and Management
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    • v.2 no.3
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    • pp.58-66
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    • 2001
  • Turnkey project, also called Design-Build project, has been expanding and diversifying its business into the Korean market. However, it has been experiencing numerous difficulties due to a large number of change orders on the public turnkey project. Change order during the construction phase impact on time deliveries, budget and quality on a turnkey project. In preparation for this, the government has to improve the awarding procedure and general conditions for turnkey projects. Contractors should also cooperate with their co-working partners and establish a standardized procedure, which provides change order control for efficient implementation on the construction site.

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The Study on Analysis of the Claim Elements for Preventing the Potential Claim in a Large-Scale Turnkey-Base Building Project - Focused on Cases of Domestic Project - (대형 건축 턴키공사의 클레임예방을 위한 클레임 요인 분석에 관한 연구 - 국내 사례를 중심으로 -)

  • Yoon Jun-Seon
    • Korean Journal of Construction Engineering and Management
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    • v.6 no.1
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    • pp.205-211
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    • 2005
  • Turnkey projects accounting for some $10\%$ of the total volume of the projects in the domestic market have been often implemented without the process of full-scale review or study because of clients' lack of expert and expertise. Moreover, many projects have been executed under the terms and conditions of the contact which were found to be unilaterally in favor of the clients. The study, as part of effects to mitigate the claims that would possibly be caused by the potential problems with the typical turnkey projects, were intended to identify the elements of the claims virtually being occurred at the construction sites, and then analyze the degree of influence on the project so as to be able to incorporate the outcome into the plan at the working-levels. As a result of experts' review, through the survey, of the elements once extracted, those having relatively higher degrees of influence on turnkey projects were determined, and the investigation aimed at estimating the amount of claims in terms of value were conducted to eventually identify, evaluate and verify the elements that had affected the Project together with the degree of influence.

Deduction on The Problems and Improve The Way of The Successful Bidder Determination Method for Turnkey·Alternative Bid Construction (턴키·대안입찰공사 낙찰자 결정방식의 문제점 및 개선 방안 도출)

  • Park, Hong-Tae;Lee, Yang-kyu
    • Journal of The Korean Society of Civil Engineers
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    • v.34 no.6
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    • pp.1881-1891
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    • 2014
  • Full system of turnkey deliberation committee in 2010 was abolished and permanent Deliberation committee was introduced. So far, ordering organization selected the best method suitable for the design and comprehensive evaluation method in the turnkey bid construction. Comprehensive evaluation method have bid price design score coordination, weighted basis, the best design approach fixed amount, five successful bidder decision method in addition. Design deliberation branch committee in the successful bidder decision way configured and operated branch members of special design consultation committee, But main agent changed from committee deliberation pull system to permanent committee deliberation, as well as and The lobby burden was not improved. This similar to the past at the portion of the design deliberation and the way of the design deliberation in the turnkey bid construction. Therefore it is necessary to improve the design deliberation system. In other words, design score and technology competition should be adapted to determine a successful bid. This study suggested the operating system of the design deliberation, the decision method problems of the successful bidder and ways to improve the design deliberation.