| Title |
A Rating Method for the Estimation of the Additional Overhead Expenses incurred by Schedule Extension in Public Construction Projects |
| Authors |
Lee, Seung-Joon ; Cha, Yongwoon ; Han, Sangwon ; Hyun, Chang-Taek |
| DOI |
https://dx.doi.org/10.6106/KJCEM.2021.22.3.079 |
| Keywords |
Public Construction; Indirect Labor Cost; Overhead Dispute; Extension of Construction Period; Change of Design |
| Abstract |
In domestic public construction, disputes are increasing due to differences among stakeholders regarding contract price adjustment. In particular, the actual cost-plus fee for overhead costs due to the schedule extension cannot be agreed upon at the administrative phase, and most of them seek judicial judgment. Thus, this study aims to propose a 'sufficiently satisfactory' alternative to reach an agreement before disputes in order to minimize disputes related to the calculation of additional overhead costs. To this end, this study proposes three alternatives based on the rate method. Firstly, when calculating additional overhead costs, it is not calculated as an actual cost-plus-fee method, but as a rate compared to direct labor costs among net direct costs. Secondly, the calculated indirect labor costs are compensated for up to the legal maximum of legal limit costs such as general management costs, profits and so on. Thirdly, it reflects overhead costs increased or decreased due to change orders. Risks were analyzed by collecting expert opinions on the proposed methods and applying actual cases. Finally, as a result of investigating the level of consensus for each stakeholder, it was confirmed that all stakeholders could agree regardless of the size of the company. The result of this study is expected to as a useful tool among stakeholders in the construction fields that can be able to easily agreed upon. |