Overseas Construction Projects Research Articles

An Assessment of Contract Management Capabilities for Overseas Construction Projects

While contract management is an important factor determining the profitability of overseas construction projects, it poses considerable difficulties for Korean construction companies. This study aims to assess the contract management capabilities of Korean construction companies, and to derive some key items worthy of close consideration as an important measure for strengthening their competitiveness. First, we defined the contract management process based on an analysis of the literature. Then we derived the capabilities required for each process stage, and carried out questionnaire surveys with 92 overseas project experts. The questionnaire was divided into two parts. The first questionnaire analysis was performed to identify major contract management capabilities that were intuitively perceived as being important by the experts. This was done using the AHP technique. The second questionnaire analysis was performed to identify capability deficits by assessing current performance level and the perceived importance of contract management capabilities. The results were subject to the Borich Needs Assessment Model and the Locus for Focus Model. The results of this study can be used for devising strategies to improve contract management capabilities and thus contribute to enhancing the international competitiveness of Korean construction companies. While the study was principally concerned with major companies looking for international contracts in the building sector, the analysis process and method can be utilized for the self-assessment of individual companies of varying sizes or specialties.

Internal and External Assessment of Contract Management Competences in the Overseas Construction Projects

Internal and External Assessment of Contract Management Competences in the Overseas Construction Projects

해외건설공사관련 계약적 리스크 인자에 대한 연구 - FIDIC Red Book 1999년판 기준 -

해외건설공사관련 계약적 리스크 인자에 대한 연구 - FIDIC Red Book 1999년판 기준 -

텍스트 마이닝을 통한 해외건설공사 입찰정보 분석 - 해외건설공사의 입찰자 질의(Bidder Inquiry) 정보를 대상으로 -

텍스트 마이닝을 통한 해외건설공사 입찰정보 분석 - 해외건설공사의 입찰자 질의(Bidder Inquiry) 정보를 대상으로 -

해외건설 엔지니어링 경쟁력 확보를 위한 역량 계층 구조 분석

Construction companies in Korea had advanced actively in overseas construction market in 2014, and had an outstanding performance in 2014 by ranking 5th in the world for overseas construction sales. However, global competitiveness and market share for Korean construction engineering companies is relatively low. This research analyzed previous studies and performed expert interviews in order to identify the necessary capabilities in performing overseas construction projects for Korean construction engineering companies. Through the extracted capabilities, Interpretive Structural Modeling (ISM) method was utilized to analyze the hierarchy of the various factors. Then, the derived hierarchy was portrayed using a Diagraph (directed graph), and the correlation between the factors were analyzed utilizing MICMAC analysis. Korean construction engineering companies may utilize the hierarchy of the derived capabilities in order to enhance its global competitiveness.

Global Market Competitiveness of Korea Construction Company

Korea's overseas construction has been developed mainly quantitative growth to qualitative growth than in recent years to enter the overseas construction market starting from entering Thailand in 1965. But look at the flow of current in the overseas construction market, construction companies are simply resource development in developing countries and underdeveloped countries are capital scarce, not only requires the construction business, the private power generation project construction funds to the contractor to demand an increase in investment development projects, such as Development trend because it is foreign investment construction projects, including the financial forms, such as requiring up to one trillion months has increased its importance is growing gradually. These overseas construction market and in view of the trends in resource development market, Korea construction company stable revenues in the future overseas construction creation and sustainable growth, and by national activate the investment development overseas construction projects in order to reliably ensure in conjunction with the resource development of the resource Korea International competitiveness of construction companies, there is a need to ensure the revival construction market, resource exploitation rights. This study investment development International theoretical concepts of construction projects and properties, overseas the advancement than to identify entry strategies such as the construction market system improve settlement and competitiveness of Korea construction company, of high value-added investment development through the development of overseas construction projects based on the fact that the provision of electricity, including qualitative leap forward in the future is to achieve the investment development overseas construction business expansion plan enabled construction companies in Korea.

성공적인 해외 건설 프로젝트 수행을 위한 리스크 관리 계획·절차 구축 및 활용 방안에 대한 연구 - 영국의 사업관리 기법인 PRINCE2를 기반으로 -

본 연구는 성공적인 해외건설프로젝트 수행을 위한 리스크 관리 계획 절차를 구축하여 활용방안을 제안하는 것을 목적으로 한다. 접근방법은 해외건설산업의 현황을 살펴보고, 영국의 프로젝트관리 체계인PRINCE2의 리스크 관리 기법의 적용과 국내 해외 건설사들의 리스크 관리 수행사례를 분석하였다. 이를 토대로 리스크 관리를 위한 해외건설사의 조직 구성과 업무프로세스를 제안하고, 리스크 관리 계획. 절차를 개발하여, 해외건설 프로젝트에 적용하였다. 그 결과, 리스크 관리와 계약관리를 효과적으로 수행할 수 있게 되었다. 본 연구의 결과는 향후 글로벌 건설기업으로 진화를 위한 해외건설사의 해외건설프로젝트 사업 능력 향상을 위해 유용하게 활용 될 수 있을 것으로 판단된다 Risk management is an important element for successful management of overseas construction projects. This study reports a case study in which we proposed a risk management planning and procedure for plant construction which can be applied throughout the project life cycle. We analyzed the risk management practices of Korean construction companies by applying the concept of the PRINCE2 method developed in the UK, and proposed a risk management planning and procedure with organizational structure and working process. The suggested risk management planning and procedure was applied to an overseas plant construction project, and produced good results. It is believed that the procedure suggested here can also be aplied to other companies to enhance the competency in the global construction market.

아시아 건설 시장에서의 지정하도급자(NSC)문제에 관한 연구 - 싱가포르, 말레이시아 그리고 홍콩의 판례를 중심으로 -

해외건설공사에서는 다양한 요인에 의하여 분쟁이 발생하고 있으며 그 가운데 하나가 지정하도급자와 관련된 분쟁이다. 이 논문에서는 지정하도급자 (NSC)와 관련된 분쟁을 연구하기 위하여 싱가포르, 말레이시아 그리고 홍콩을 대상으로 하여 30건의 판례를 조사하여 분석하였다. 또한 판례의 유형을 다음의 6가지로 분류하였다: 공기지연 및 하자에 대한 책임문제에 관한 판례(T1), 계약관계에 관한 판례(T2), 지불과 관련된 판례(T3), 공제(Set-off)와 관련된 판례(T4), 도산 및 청산에 관한 판례(T5) 그리고 기타 판례(T6). 분석결과 분쟁발생빈도는 경제 사회변화와 관계가 있고, NSC가 원도급자를 상대로 재판을 청구하는 경우가 가장 많았으며, 주거 및 상업용 건축물에서 NSC분쟁이 많았다. 결과적으로 NSC문제에 대한 원도급자의 적극적인 대응이 필요한 것으로 검토되었으며, 관련자들의 의사교환이 가능한 협의체 구성도 필요하다. 그러나 근본적으로는 계약약관을 포함한 발주자의 권한과 책임을 일치시키는 제도적 정비가 무엇보다 중요한 것으로 검토되었다. Many disputes are happened with various causes in overseas construction projects. One of major disputes is closely related with nominated subcontractors (NSC). This paper investigates 30 judical precedents for Singapore, Malaysia and Hongkong to analyze the detailed disputes related with the NSC, and then the judical precedents are classified into 6 categories: Delay and Defect Trouble (T1), Contract Relation (T2), Payment Trouble (T3), Set-off (T4), Liquidation (T5) and so forth (T6). According to the analytical results, the frequency of occurrence of disputes is considerably related with social and economical changes, and the dispute between NSC and employer for residential and commercial building projects is the most frequently happened case. As the results of analysis, therefore, it is concluded that the employer needs to response aggressively to the problems related with NSC, and it is also important to make the council for communication among related bodies. Furthermore, the institutional reform that make the role and the responsibility of employer consistent under considering contract terms and conditions is considered as the most important and fundamental issue.

건설기술 정보서비스 구축 방안에 관한 연구

Recently, construction industry has won an increasing number of orders for overseas construction projects, thereby achieving an external growth, but its competiveness is concentrated on the construction execution field. In particular, the plant field occupies most of the entire orders, which are concentrated regionally in the Middle East and Asia. In addition, 1ow-cost orders are frequently caused by excessive competition. But its high value-added construction engineering(Below, CE) field's overseas market share and technological capacity are very low. Also, technological competiveness, in terms of order amount and other factors, is deepening in polarization between large CE companies and small and medium-sized CE firms. It is noted that the existing CE information systems mostly simply accumulate data such as design and specification standards and provide the information thereon to users, and thus have yet to provide the information essential for the CE and support such efforts. This study sought to prepare a system designed for sharing outstanding design documents information necessary for the CE industry, by category of construction so as to support the technological enhancement of the CE field. Toward that end, this study presented measures for constructing the system and services designed to exchange and share the outstanding design documents information and know-how by construction category necessary between ordering agencies and CE companies.

A bid decision-making model in the initial bidding phase for overseas construction projects

Recently, the award of overseas construction projects to Korean construction companies has substantially increased, and the number of Korean bids to win such projects has grown significantly also. Overseas project bidding characteristically requires a higher resource input cost in the initial preparation phase than does domestic project bidding. However, the bidding process of construction companies is frequently suspended for various reasons, and hence the opportunity cost associated with the bidding process becomes a sunk cost which, in turn, puts the bidder at a further loss. Therefore, by identifying projects with the highest chance of proceeding up to the final bid submission in the early phase of bidding, the sunk cost that results from a bid drop or suspension can be reduced and the projects with high bid probabilities can be targeted to enhance order possibility and performance capability. Unfortunately, many contractors tend to rely on qualitative assessments based on their past experiences and intuition, or on the Chief Executive Officers’ (CEO) subjective instructions, when making a bid decision. In this respect, this study proposes a model utilizing the logistic regression method, analyzing the correlation between various factors of project and bid decision making to increase the effectiveness of future decision making. If factors relating to the internal decision-making process of a construction company and overseas bidding process are coordinated, the bidders can be expected to enhance the reliability of their decisions using this model, and the cost incurred during a bidding process may be reduced.

Analysis on Current State on Safety Education of Korean Construction Sites in Overseas

Heinrich (1980) claimed that safety education primarily relates with 88 percent of safety accidents, and secondarily relates with safety accidents. For this reason, safety education is of critical importance. However, while many studies have been performed on safety education in Korea for the prevention of safety accidents, few studies have been done on safety education currently performed in other countries. Therefore, in this study, a comparative analysis was conducted on the safety education cases of three different construction companies that are currently carrying out overseas construction projects. With this study, we identified four shared features and some differences in the safety education of each company.

국내 건설경기 변화와 해외건설수주 간의 관계성 분석

Abstract : This study undertakes a comparative analysis of the correlation between the condition of the domestic construction market and the expansion of overseas projects within construction companies, based on the vector error correction model. The analysis results verified that, in the post-IMF crisis period, domestic construction companies took on more overseas projects only when the residential construction market slowed down. Compared to the pre-crisis period, construction companies grew more responsive to the condition of the domestic market for residential construction, and they took on more overseas construction projects when the domestic market slumped. This is because the business portfolios of Korean construction companies’ render them highly vulnerable to the condition of the residential construction market. When the domestic residential market slows down, the business condition of construction companies quickly takes a turn for the worse, and to cope with this, they turn to overseas projects to compensate for the slowing of the domestic market. As the analysis shows, expanding overseas construction projects as a way to turn around business condition amid a slow residential construction market actually undermines the management of the companies even further. In other words, shifting business focus toward an overseas market during a hard time might be useful for securing cash flow, but might not help to restore profitability. Thus, construction companies need to carefully manage their level of business diversification to ensure strategic flexibility.

아시아 지역 영연방국가의 지정하도급(NSC)제도에 관한 비교 연구 - 표준계약약관의 지정하도급자 항목분석을 중심으로 -

최근 국내 건설시장의 축소와 수주경쟁의 심화로 인하여 많은 건설기업들이 이에 대한 대안으로써 해외건설 시장에 진출하고 있다. 그러나 해외건설 프로젝트에서는 국내 건설 프로젝트와 책임과 권한의 범위가 다른 다양한 프로젝트 주체가 참여하고 있으며, 프로젝트를 둘러싼 수행환경 및 계약관행이 국내 건설 프로젝트와 다르기 때문에 다양한 리스크 요인이 존재하고 있다. 특히 해외건설 프로젝트의 문제가운데 하나가 Nominated Sub-Contracting (NSC)로 알려진 영국과 영국연방국가에서 사용되어지고 있는 하도급계약이다. 본 논문은 영국과 아시아지역 영연방 국가의 JCT약관, SIA약관, HKIA약관, PAM약관의 비교를 통해 NSC제도와 차이점을 소개한다. 또한 NSC계약의 채용 거부와 계약 해지와 관련된 약관항목분석을 통해 NSC제도의 유형을 분류한다. In recent, many Korean contractors have tried to extend their business area into the overseas construction market, mainly as a result of a reduction in their domestic construction market. However in terms of risk, overseas construction projects are likely to face a number of unpredictable problems, many of which occur as a result of differences in contract cultures and construction environments between Korea and other countries. One key issue facing overseas construction projects in particular, is that of sub-contracting and control, and the way in which many countries of Commonwealth of Nations operate a unique subcontracting method well known as a nominated sub-contractor(NSC). This paper introduces the NSC system and differences as comparing among standard construction contract forms, such as JCT, SIA, HKIA and PAM. in UK and Asian Commonwealth of Nations. Also, we attempt to classify the type of the NSC system through the consideration of NSC clauses in accordance with the objection and termination of NSC contracting respectively.

Effects of cultural assimilation on the performance of a construction project – evidence from UAE

Purpose– The purpose of this study is to assess the effect of the national culture on the performance of a construction project in the UAE. This study benchmarks reason for the success or failure of construction projects from the cultural perspective.Design/methodology/approach– This study takes a case study approach, using the qualitative research method. Data were collected through participant observation and project records as part of the lessons learned and the data were analysed using the coding procedure of grounded theory. Re-confirmation and cross-checking interviews were also conducted to confirm the correctness of the coding. The qualitative data were expressed in quantitative terms to signify statistically the effect of the national culture on the construction project. In this way, the research methodology employed triangulation in its data analysis.Findings– This study found differences in the national culture of the Chinese construction project management teams in overseas construction projects in the UAE. The level of uncertainty and long-term orientation contributed to the success of one of the construction projects under scrutiny and the failure of the other.Research limitations/implications– The study was limited to two construction projects in the UAE. Further research into construction projects is required to validate whether the national culture is generally an element to consider in overseas construction projects.Practical implications– The research study provides reasons for the success and failure of the two projects from the perspective of differences in national culture. Understanding the cultural differences in international construction projects should help to resolve project issues before these need to be terminated. The termination of a project has economic and social implications for all the stakeholders.Originality/value– No research study was found to have identified the national culture dimensions of overseas construction project management teams in the UAE. The longitudinal study helped to understand cultural assimilation during the execution of construction projects in the UAE.

Risk-integrated cash flow forecasting for overseas construction projects

Construction firms have long attempted to forecast a project cash flow at the initial stage of a project, which is closely related to the payment conditions and financing schedules. There are, however, diverse risk factors influencing project cash flow, in particular for the domain of international projects, which often fluctuate because of a myriad of external as well as internal uncertainties. In this research, risk factors that impact the soundness of cash flow are classified into two categories: financial risks and project-specific risks. The former refers to the external economic conditions such as exchange rate, cost escalation, and interest rate which can be analyzed through a probabilistic financial algorithm. Then, the project-specific risks such as host country’s geotechnical conditions, weather and climate differences, and resource delivery conditions are further assessed through utility curves to represent the firm’s unique risk perceptions and thresholds to the amount of risk exposures. Results of cash flow forecasts by the proposed approach are compared with the actual cash flow of a retrospective case project. It is found that construction firms better decide on a decent level of cash contingency and the probable net-profit at completion by the adoption of the proposed approach.

다중회귀분석을 통한 해외 건설 프로젝트 특성요인이 손익율에 미치는 영향 분석

1960년대부터 우리나라 건설사는 중동 건설 붐을 통해 노동집약적인 건설산업을 부흥시키기 위해 진출을 하였고, 이를 자양분으로 삼아 경제 부흥에 큰 일조를 하였다. 하지만 최근 20년간 해외 건설산업은 매출규모는 이전에 비해 비약적인 증대를 보였으나 이익 측면에서는 개선이 이루어지지 않으며 오히려 그 추세는 하향세를 그리는 것을 알 수 있다. 따라서 본 연구에서는 대형시공사의 최근 30년간 180여개의 프로젝트를 구성하는 요소가 손익율에 어떠한 영향을 미치는지 통계적인 시각에서 그 독립변수가 종속변수에 미치는 영향에 대해 알아보려 한다. 통계적인 기법은 다중회귀분석을 선택하였고, 다수의 독립변수가 하나의 종속변수에 미치는 영향정도를 도출하여 향 후 해외 건설 프로젝트 입찰 또는 수행 시 참고가 가능한 판별 기준을 설정하고자 한다. From <TEX>$1960^{th}$</TEX> Korean construction industry has been rapidly grown due to Meddle-East construction market growth. To earn foreign currency and to raise overall Korean industry government has encouraged construction frontiers. As construction industry could grow up for its labour based originity but the time passes by and overseas construction market requests engineering know-how and technology for productivity to earn more profit. Over last 20 years overseas construction market share has been dramatically raised but its profit share is gradually declining. This study analyzed data sets of over 180 overseas construction projects for last 30 years of domestic contractor by using multiple-regression analysis and derived an output how input variables of characters explaining the construction project effects its profit.

통합설계관리의 개념적 틀 및 역량강화 요소 - 건축과 플랜트를 중심으로 -

최근 해외공사 수주 증가 및 건설산업의 발주방식의 변화로 인해 관리 범위가 확대되고 있으며, 이에 따른 기획단계의 관심이 높아지고 있다. 이를 위해 설계, 구매와 관련한 업무의 중요성이 강조됨에 따라 그에 따른 관리에 대한 필요성이 증대하고 있다. 그럼에도 불구하고, 지금까지 설계관리는 설계단계에 국한되어 성과품의 품질을 위한 관리에 치중해 있었으며, 건설생애주기를 포괄하여 정의한 연구는 매우 부족하다. 따라서 포괄적인 관점에서의 설계관리 개념, 범위 그리고 활용 방식에 대한 연구가 필요하다. 본 연구는 통합설계관리의 개념과 역할을 명확하게 정의하기 위한 개념적 틀(Framework)을 제안하고, 이러한 개념 요소를 바탕으로 향후 발전 방향을 분석하는데 있다. 이를 위하여 플랜트와 건축의 사업특성을 비교하여 실무에서 가장 관심이 높다고 판단되는 건설사업관리 기법 네 가지(공정원가 통합관리, 설계관리, 형상관리 그리고 인터페이스관리)를 선정하였으며, 그 개념 및 활용 범위에 대한 적용 가능성을 고찰하였다. 그리고 설계관리 선행연구 문헌을 조사함으로써 설계관리의 포괄적인 의미 변화와 발전 방향의 모색을 통한 통합설계관리의 틀을 제시하였다. 나아가 이에 대한 타당성 및 적용성을 검증하기 위하여 각 건설사업관리 기법 등 상관관계 및 변화 양상을 분석하였으며, 현장 방문 및 전문가 인터뷰를 통하여 제시된 현황 분석 및 개념 요소에 대한 우선순위를 확인하였다. 본 연구는 플랜트와 대형 건설 사업에서 체계적이고 효율적인 통합설계관리 구현을 위한 우선순위 선정과 전략적인 활용 방안으로서 설계관리를 위한 효과를 기대한다. Recent diversification of project delivery systems coupled with increasing mega-projects requires highly advanced construction management techniques. Among those techniques, procurement and design management are recognized as being the first priority for overseas construction projects. Nevertheless, previous research in design management has been limited to the quality management of the design documents at design stage. Therefore, it is necessary to explore the design management from a comprehensive perspective throughout the project life cycle. In this context, the purpose of this paper is to propose a conceptual framework for integrated design management (IDM). Several different concepts in relation to design management were investigated first in order to identify the major variables of the IDM framework. A comprehensive comparison of construction management methodologies was also analyzed in order to identify key factors of IDM. Finally, an IDM framework was proposed by combining those factors and relevant issues. Based on the proposed framework, a survey was conducted in order to validate the framework as well as to identity important areas for improving competitive capability of Korean construction companies.

Introduction and Comparison of Wind Load Codes for Advanced Structure between Chinese, American and British

China is developing overseas construction projects, it is necessary for the designers to grasp codes. This paper compares and analyzes Chinese code GB50009-2001, American standard ASCE/SEI7-05 and British standard BS6399-2 about advanced structure. And the writer calculates the empirical projects' wind-loads by Chinese code, American standard and British standard, compares the difference and points out the deficiency of domestic code. So as to improve the designers to master different wind load standards and promote the improvement of inland standard.

건설사업 참여주체 별 해외건설공사 국가리스크 핵심요인 도출 및 비교분석

정부는 장기적인 관점에서 해외건설사업의 활성화와 수주 경쟁력 강화에 주력하고 있다. 최근에는 단순 도급공사 뿐만 아니라, 설계 및 엔지니어링, 건설사업관리(CM)) 사업의 해외진출 역시 점진적으로 늘어나는 추세이다. 하지만 현재까지 해당 분야에 대한 리스크 분석 사례는 미미한 실정이다. 이에 본 연구에서는 참여주체 별 해외건설공사 리스크에 대한 비교분석을 위하여 리스크를 계층화하고, 도출 된 리스크요인에 대하여 PI척도를 활용한 전문가 대상 설문을 실시하여 그 특징을 비교하여 보았다. 본 연구의 결과로써, 해외건설 국가리스크를 총 6 Section, 31개의 요소로 계층화 하였고, 이를 기초로하여 참여주체 별 중요도를 도출하였다, 또한 Risk Matrix에 따라 시공사 17개, 설계사 14개, CM사 17개의 핵심리스크 요인을 선정하고 이를 비교 분석 하였다. 본 연구 결과는 향후 건설사업 참여주체 별 사업 특성에 맞는 리스크관리전략 수립 및 평가모델 구축을 위한 기초자료로 활용 가능할 것으로 기대된다. The government has focused on activation of overseas construction projects and strengthening competitiveness in the long term. In recent years Public construction contract as well as design, engineering, construction management(CM) are gradually expanding into other countries, but risk analysis cases in the field are slight. In this study, We utilized PI scale and drew a conclusion about the importance of overseas risk by participants. We compared its features from the risk factor based on Risk Matrix. As a result of this study total of 6 section 31 Country Risk factors for the importance of overseas risk by participants were drawn, and the key risk factors (17 constructor, 14 designers, 17 CMr) based on Risk Matrix were derived. By utilizing the result of this study will be used as the basic data for establishing risk management strategy to meet each business and planning evaluation model.

해외건설사업이 건설업체 재무적 안정성에 미치는 영향 분석

일련의 건설업체들의 사업 구조 변화 과정을 살펴보면 국내건설시장과 해외건설시장의 수주 규모가 건설업체의 재무적 상황과 특정한 관계가 있을 것으로 판단된다. 이러한 관점에서 본 연구에서는 해외건설사업과 건설업체의 재무 건전성 간에 관계성을 실증분석하는 것을 목적으로 한다. 본 연구에서는 유동성 지표는 유동비율을 안정성 지표는 부채비율을 분석에 활용하였다. 분석변수의 시계열 자료는 2000년부터 2010년까지의 분기별 자료이다. 본 연구에서는 유동비율과 해외 및 국내 건설수주액을 활용한 모형을 Model 1로, 부채비율과 해외 및 국내건설수주액을 활용한 모형을 Model 2로 구분하여 분석을 수행하였다. 분석결과 현재 해외건설수주액 증가가 유동비율을 증가시킴으로서 단기 자금회전은 원활히 할 수 있지만 전체적인 관점에서 부채비율을 낮추는 데에는 효과가 낮은 것으로 나타났다. 이에 따라 현재 급격한 해외건설사업 규모 증대를 긍정적인 현상으로 보기에는 무리가 있을 것으로 판단된다. The changes in business structure of domestic construction companies suggest that there is a close relationship between the volume of overseas project and a company's financial condition. Based on this assumption, this study conducts an empirical analysis on a relationship between overseas project and financial stability of a construction company. The ratio of liquidity and liability was used as liquidity index and stability index respectively. The analysis was based on quarterly time-series data between 2000 and 2010. Two models were constructed for the analysis: Model 1 was based on the liquidity ratio and the amount of domestic and overseas construction project; Model 2 was based on the debt ratio and the amount of domestic and overseas construction project. The analysis results showed that the increasing amount of overseas project facilitated short-term financing with greater liquidity, and yet it was not very effective in lowering the debt ratio. This suggests that the dramatic increase in overseas construction project, which is observed recently, is not entirely an optimistic sign.