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The scope of the paper is the problem of the economic effectiveness of the construction project from the contractor’s point of view. The two main construction contract types are taken under consideration: the unit price contract based on the bill of quantities and the lump sum contract.
The net present value ( NPV ) is adopted in this paper as the...
Contexts in source publication
Context 1
... is assumed, that works will start as soon as possible. The project schedule data are given in Table 1. Day means work day. Figure 3 depicts the resulting project baseline schedule. ...
Context 2
... the lump sum contract, the work items listed in Table 1 were allocated to six bill elements, as shown in TTable 3. Financial data are based on those given for the work items in Table 2. ...
Citations
... At the first stage, a cash flow model was developed over the 50 years of the life cycle of the project for the construction of an apartment building in Kazan (Russian Federation). At this stage of calculations, the main research methods were [24]: ...
Economic efficiency during the entire life cycle of a property is crucial when making a decision on an investment. The resulting performance indicators are influenced by various underlying factors. The purpose of the study is to determine the degree of the factors influence on the final result. The study considers an apartment building and 50 variants of the project implementation according to the chosen factors, which are construction period, selling price per square meter, discount rate, land plot cost and construction cost of one square meter. The net present value of the project (NPV) and internal rate of return (IRR) were selected as the resulting indicator. When performing the calculations, following method were used: project net present value calculation method (NPV); method for calculating the discounted payback period (PP); method for calculating the internal rate of return (IRR), sensitivity analysis, multiple correlation and regression analysis (multiple regression). We found that the selling price and construction cost of one square meter of the property affect the most on the net present value of the project (NPV). The obtained model can be used by investors to simulate various options for the effective projects implementation in changing environment.
This study concerns the use of the critical chain method to schedule the construction of renewable energy facilities. The critical chain method is recognized as a useful project management tool, transforming a stochastic problem of uncertainty in activity durations into a deterministic one. However, this method has some shortcomings. There are no clear principles of grouping non-critical activities into feeding chains. Another ambiguity is sizing the feeding buffers with regard to the topology of the network model and the resulting dependencies between activities, located in different chains. As a result, it is often necessary to arbitrarily adjust the calculated sizes of feeding buffers before inserting them into the schedule. The authors present the new approach to sizing the time buffers in the schedule, enabling a quick assessment of the quality of a given solution variant and finding a solution that best meets the established criteria, conditions, and constraints. The essence of the presented approach is the two-step sizing of time buffers with the use of deterministic optimization and stochastic optimization techniques. Taking into account construction management needs, the optimization criteria are based on the construction project cash flow analysis. The effectiveness of the presented approach is illustrated by an example of developing a wind power plant construction schedule. According to the results, the presented approach ensures the protection of the scheduled completion date of the construction and the stability of the schedule.
Construction or purchase of a detached house in the suburb, which is a more comfortable and demanded residential option for families, is really topical nowadays. According to this fact, large and small gated communities appear around large cities. They include modern infrastructure, protected territory and other amenities. The study analyzes 38 economy and business class gated communities around the city of Kazan. This analysis allowed us having the most complete understanding of events in this segment of residential real estate. The article selects pricing factors and reveals a mathematical pattern of changes in the market value of land plots intended for private houses construction in Kazan. As a result, the study reveals that three factors have the greatest impact on the value of land plots: distance from the city, transport accessibility and the current lifespan of the gated community. The materials of the article may be of practical importance for developer companies, as well as for potential buyers of land plots in gated communities in the Republic of Tatarstan.
The effectiveness of innovation activity is largely determined by the relevant infrastructure which is the basic component of a developed economy. The correlation between the development of the innovative economy and the intensification of investment activity is revealed.
On the basis of retrospective analysis of trends and patterns in the development of investment activity, an assessment of the resource support of the investment process in the Republic of Tatarstan is carried out. The need for advanced development of the production potential of the investment and construction complex of the region and the material and technical base on the basis of the development of the local raw material base is justified. An economic and mathematical model of the interaction of investment recourses that determine the level of innovative development of the region is proposed. On the basis of the theory of factor models, the quantitative relationships between the factors that have the greatest impact on investment development are investigated. They are: gross regional product, investment in fixed assets, the volume of contract work, the volume of investment in housing construction, the cost of research and development in the gross regional product, the share of innovation costs in industrial investment.
The article presents the profit optimization model for multi-unit construction projects. Such projects constitute a special case of repetitive projects and are common in residential, commercial, and industrial construction projects. Due to the specific character of construction works, schedules of such projects should take into account many different aspects, including durations and costs of construction works, the possibility of selecting alternative execution modes, and specific restrictions (e.g., deadlines for the completion of units imposed by the investor). To solve the NP-hard problem of choosing the order of units' construction and the best variants of works, the authors used metaheuristic algorithms (simulated annealing and genetic search). The objective function in the presented optimization model was the total profit of the contractor determined on the basis of the mathematical programming model. This model takes into account monthly cash flows subject to direct and indirect costs, penalties for missing deadlines, costs of work group discontinuities, and borrowing losses. The presented problem is very important for maintaining a good financial condition of the enterprise carrying out construction projects. In the article, an experimental analysis of the proposed method of solving the optimization task was carried out in a model that showed high efficiency in obtaining suboptimal solutions. In addition, the operation of the proposed model has been presented on a calculation example. The results obtained in it are fully satisfying.
