Cost-effectiveness analysis and evaluation of a ‘three-old’ reconstruction project based on smart system

Abstract

The ‘three-old’ reconstruction refers to the urban transformation and renovation activities of ‘old town’, ‘old factory building’ and ‘old village’ in a land intensive development after a city builds up to a certain stage. To accomplish the reconstruction need a continuous monitoring, but this would cause high costs for the government and the contractor. The use of information and communication technologies (ICT) jointly with artificial intelligence and smart devices can reduce these costs, help the contractors. In this study, total reconstruction cost was estimated by analyzing surrounding real estate prices and business environment changes from the urban three-old reconstruction project, based on a cost-effectiveness analysis model and smart system. We have developed a system with intelligent sensors to monitor all the reconstruction procedures. Research results demonstrated that: (1) the return on investment of the reconstruction of Pazhou Village was 27%, indicating its considerable economic benefits. This conforms to the economic benefits that real estate developers pursue. (2) For the same reconstruction project, different reconstruction modes will involve different cost-effectiveness. (3) The implicit benefits attached to the urban three-old reconstruction, such as social benefits and environmental benefits, influence the reconstruction benefits to some extent. (4) Smart system could be use in the construction project and achieve a successful result. The research conclusions and suggestions will provide support to government, developers, and related departments in making decisions about urban renewal projects.