SELECTION MODEL OF REPRESENTATIVE ITEMS FOR THE SUBCONTRACTORS’ COST INDEX IN MULTI‐FAMILY HOUSING PROJECTS

Author:

Park Sung-Chul1,Hong TaeHoon2,Koo Kyo-Jin3,Hyun Chang-Taek3

Affiliation:

1. Educational Facilities Research and Management Center, Korean Educational Development Institute, Seoul, Korea

2. Dept of Architectural Engineering, Yonsei University, Seoul, Korea

3. Dept of Architectural Engineering, University of Seoul, Seoul, Korea

Abstract

Price index has played an important role in measuring the past performance of an industry, which it does by tracking the cost of the items used in the industry. It is the most widely used industry performance indicator because a small number of representative items covers a wide range of costs. The construction industry consists of various facility types that can be organized into many subcontractors’ works. Unfortunately, the existing cost indexes have difficulty monitoring the fluctuation of the subcontractors’ costs since they select representative items in macro‐scale terms, such as the type of construction or facility. Therefore, this study was conducted to develop a selection model that can select the effective representative items included in the subcontractors’ costs. To determine the characteristics of the subcontractors’ costs, the curve estimation function of SPSS® 12.0 for Windows was applied to the priced bills of quantities of 30 multi‐family housing projects. The results of the analysis show that the relationship between the coverage ratio and the percentage of the number of representative items follows Pareto's principle. Based on this, a selection model of representative items was developed, using the tangent function. The case study that was conducted to verify the usability of the model revealed that the proposed model can efficiently select the effective representative items from the cost items of each subcontractor's work included in multi‐family housing projects. Santrauka Kainos rodiklis yra labai svarbus analizuojant igyvendintus projektus ir yra tiriamas naudojamu tipiniu produktu pramoneje. Tai plačiai naudojamas pramones veiklos rodiklis, tačiau nedaugeliui tipiniu produktu būdingas platus kainu diapazonas. Statybos pramone apima ivairias paslaugu rūšis, kuriu daugeli teikia subrangovai. Deja, esami kainos rodiklio subrangovu išlaidu svyravimai sunkiai kontroliuojami, nes tipiniai produktai, tokie kaip statybos būdas ar gebejimai, atrenkami makroskales požiūriu. Todel šis tyrimas buvo atliktas siekiant sukurti atrankos modeli, pagal kuri būtu galima pasirinkti naudingiausia tipini produkta ir ivertinti subrangovu išlaidas. Subrangovu sanaudu charakteristikoms nustatyti taikyti kreives funkcijos skaičiavimai SPSS® 12.0 Windows, naudoti 30 daugiabučiu namu projektu ikainojimo dokumen‐tai. Tyrimu rezultatai rodo, kad santykis tarp apimčiu koeficiento ir tipiniu produktu procento pagristas Pareto principu. Juo remiantis buvo sukurtas tipiniu produktu atrankos modelis, taikant tangento funkcija. Atvejo tyrimas, atliktas siekiant patikrinti modelio naudojima, atskleide, kad numatomas atrankos modelis gali racionaliai parinkti kiekvieno subrangovo darbus pagal naudingiausius tipinius elementus, kurie itraukti i daugiabučiu namuprojektus.

Publisher

Vilnius Gediminas Technical University

Subject

Strategy and Management,Civil and Structural Engineering

Reference21 articles.

1. Axiomatic Price Index Theory: A Survey

2. Barrie, D. S. and Paulson, B. C. 1992.Professional Construction Management, 3rd ed., 198–205. McGraw‐Hill Book.

3. Bates, W. and Dawood, N. Development of a computerised cost indices forecasting model for construction activities in the heavy civil engineering industry. Proc. of the Mouchel Centenary Conference on Innovation in Civil and Structural Engineering. August19–211997, Cambridge, England. pp.189–198.

4. California Department of Transportation (Caltrans). 2006. “Cost Index Summary [online]”. [accessed 8 June 2006]. Available from Internet:

5. Dawood, N. Development of a forecasting methodology for cost indices in the Greek construction industry. Profitable Partnering in Construction Procurement. Routledge, UK. pp.627–636.

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