Quantifying the Third-Party Loss in Building Construction Sites Utilizing Claims Payouts: A Case Study in South Korea

Ji-Myong Kim, Kag-Cheon Ha, Sungjin Ahn, Seunghyun Son and Kiyoung Son
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Ji-Myong Kim: Department of Architectural Engineering, Mokpo National University, Mokpo 58554, Korea
Kag-Cheon Ha: Department of Police & Fire Administration, U1 University, Yeongdong 29131, Korea
Sungjin Ahn: Department of Architectural Engineering, Mokpo National University, Mokpo 58554, Korea
Seunghyun Son: Department of Architectural Engineering, Kyung Hee University, Suwon 17104, Korea
Kiyoung Son: School of Architectural Engineering, University of Ulsan, Ulsan 44610, Korea

Sustainability, 2020, vol. 12, issue 23, 1-13

Abstract: This study aims to quantify the losses to third-parties on construction sites by determining the loss indicators and identifying the relationship between the losses and the indicators to improve the sustainability on building construction sites. The growing size and intricacy of recent construction projects have resulted in the growth of losses, both in quantity and frequency. Notably, third-party losses are rapidly increasing owing to the urbanization of the environment and increases in construction scale. Therefore, for efficient and sustainable construction management, a financial loss assessment model is essential to mitigate and manage such loss. This study uses the third-party losses on construction sites obtained from a major South Korean insurance company to describe the difference from the material losses and to disclose the loss indicators based on actual economic losses. ANOVA analysis and multiple regression analysis are adopted to identify the variance and define the loss indicators and to make prediction models, respectively. Several groups of loss indicators are investigated, including construction information and the occurrence of natural disasters. The findings and results of this research afford an essential guide to sustainable construction management, and they can serve as a first stage loss assessment model for construction projects.

Keywords: sustainable construction management; third-party loss; loss assessment; loss indicators; ANOVA; multiple regression analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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