| Title |
A Study on the Analysis of Cost Adjustment Scenarios by Bidding Method through Analysis of the Total Project Cost Management Process |
| Authors |
Kim, Kyeongbaek ; Lee, Gayeoun ; Kim, Sangbum |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2020.21.2.030 |
| Keywords |
Total Procject Cost Mangement; Cost Mangement; Quantitative Impact; Procurement Methods |
| Abstract |
Inadequate cost management has widely been recognized as one of the most problematic areas in the Korean construction industry as many believes that public cost references are not reasonably reflecting the market conditions. ‘Total Project Cost Management Guideline’ developed by Ministry of Economy and Finance(MOEF) to govern public budget control has been identified as one of the main reasons for this problem. This study attempts to thoroughly review ‘Total Project Cost Management Guideline’ itself and quantitatively analyze the impact of it on project cost during procurement process. Different procurement methods are considered including turnkey & alternative, private contract, qualification examination, and lowest price bidding system in this quantitative impact analysis of ‘Total Project Cost Management Guideline’. Analysis results shows that this governmental process works mainly as a constant cost-cutting tool throughout the procurement process. |