| Title |
Improvement of the Calculation Standard for Prolongation cost of Long-term Continuing Contracts Construction Project |
| Authors |
Jeong, Kichang ; Lee, Jaeseob |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2017.18.2.030 |
| Keywords |
Prolongation Cost ; Time Extension ; Suspension ; Indirect Cost ; Long-term Continuing Contracts |
| Abstract |
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 cont inuing contract. |