When the construction is completed, the budget overflow will bring about the deterioration of profitability and profit rate of construction. The object of this study is to propose correction factor value of modification factor on actual damage based o...
When the construction is completed, the budget overflow will bring about the deterioration of profitability and profit rate of construction. The object of this study is to propose correction factor value of modification factor on actual damage based on analysis of historical data of public office buildings. This is as in the following:
First, the basic analysis was done based on the construction costs by activity through regression analysis. The research was divided by the categories, types and construction scales in considerate of the characteristics of constructions.
* A thesis for the degree of Ph.D in February 2016.
Second, in order to estimate the total construction costs, we have established the optimal regression model using regression analysis as a basic analysis, and through this, we have calculated the correction factor of the total construction costs by using mean comparison analysis of the median.
Third, in order to calculate the correction factor of the total construction costs, we have done inter-comparison study with 13 field data of cost of previously executed construction to compare and verify the construction expenses based on the actual cost data.
Fourth, the result of comparing and verifying of precedents was appears to be the ‘5.35(%)’ optimal correction factor by categories, ‘5.96(%)’ optimal correction factor by types, and the total construction costs on historical total construction cost would be ‘6.13(%). The total construction costs by construction size and the optimal correction factors of construction expenses were decided to be ‘3.58(%), 2.95(%)’ consecutively.
The methodology used in this study was only limited to an historical construction cost, but it is expected to be applied to every public construction. Also, if we can use the analysis of construction expenses derived from this study, it is expected to achieve many efficient effects. Also, if optimal construction costs are estimated according to the scale of construction projects, examination of the expenses in planning stage can be applied, so it is expected to help to maintain effective management and efficient decision making process. However, if this was applied to the construction expenses that has actually been conducted before, it is unfit to estimate the expected construction expenses due to uncertain factors. However, if the optimal modification factor drawn from this study was utilized in the historical construction cost, it is expected to be helpful for minimizing the loss due to the budget overflow.
Therefore, by enlarging the range of research that can effectively supplement the limits of optimal correction factor on correction loss of the public office buildings' historical construction cost, developing the forecasting model with collective historical cost data according to the different types of buildings and characteristics of constructions, and by setting the optimal modification factor on the total construction expenses of every performance data, hands-on workers of public institution will be able to make reasonable profit on the business and system improvement of the current cost of construction. The optimal correction factor and forecasting technology of total domestic construction costs that this study projects will provide the foundation of the management and development of construction expenses due to the correction loss, being expected to improve the exactitude and consistency of calculated result of the total construction costs.
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