| Title |
An Analysis and Improvement of Progress Payment Regulations in Korea Using System Dynamics - Focusing on Public Construction Industry - |
| Authors |
Park, MoonSeo ; Lee, Jeoung Hoon ; Lee, Hyun-Soo ; Hwang, Sung-Joo ; Kim, Soo Young |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2012.13.1.148 |
| Keywords |
Public Construction ; Progress Payment ; System Dynamics ; Cash-Flow ; Bullwhip Effect |
| Abstract |
Recently construction companies' capital condition has been aggravated due to low profit, fierce competition and market contraction. For this reason, the companies rely on public construction projects that protect construction fee by regulations. Despite these regulations, problems regarding progress payment are constantly happening. Also, insufficient analysis on interaction between contractors makes policy making difficult. Thus, in this study, interaction between contractors are quantitatively determined according to delay of application and payment based on current public construction regulations on construction stage. A system dynamics model is used, which analyzes the problems based on an interaction between contractors, and solutions for progress payment application and payment delay are suggested according to the research results. |