Abstract
Investment and construction plans, architectural and construction decisions, and spatial and technology-related decisions made at the early stages of a project have a significant impact on meeting the investment goals and customer expectations. Decision making is a very time-consuming and complicated process (due to the complexity of construction processes). The whole difficulty comes to specifying the appropriate criteria for assessing the given activities, providing answers to the questions of the decision-making bodies. A set of appropriate criteria and mathematical tools (such as computer algorithms with multi-criteria analysis) can significantly improve and accelerate the decision-making process. This article combines ESORD (an IT tool that allows you to compare different types of solutions based on mathematical calculations) with the Monte Carlo method. The developed approach can help the investor to optimize their cash-flow schedule. The original method enables the client to select a construction project variant characterized by the best economical and sustainable parameters, while taking into account customers’ demands.
Highlights
One of the most difficult problems faced by project managers/investors is the selection of the best variant of the implementation of a given investment plan
The choices made have a significant impact on the cash-flow schedule of the investment
The problem is especially important during the first stages of a construction project
Summary
One of the most difficult problems faced by project managers/investors is the selection of the best variant of the implementation of a given investment plan. The struggles related to this issue appear already at the investment planning stage, after the expectations and requirements of the investor/client are defined in the functional and operational program. At individual stages of the project life cycle, the analyzed phenomena are very complex, which results mainly from the specific requirements, the complexity of the issues discussed and the nature of the technological and construction processes and the relationship between them [1]. The choices made have a significant impact on the cash-flow schedule of the investment. By cash-flow schedules authors understand timing of different project incomes and outcomes, sometimes with delays and/or acceleration (sometimes unfavorable) [2]. That is because the sooner the decisions are made, the more impact they will have on the life cycle cost and key performance indices of the project [3]
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