Abstract
Decision making is associated with ranking problems aimed to obtain a set of preference order of solutions. People can make mistakes choosing the best object for investments. Due to high cost of such mistakes, such a choice should be well founded. A major goal of paper is to develop a theoretical basis for creating a decision support system aimed to increase building construction and reconstruction investment efficiency by applying multiattribute decision making approaches and mathematical modelling. To achieve the goal, the following problems have to be solved: to analyse new models currently used in developing investment strategies in building construction and reconstruction, to make a classification of construction investment projects and to describe the stages of determining the efficiency of construction investments, to create a family of multiattribute decision methods to be used in the analysis of investment projects in building construction and reconstruction, to create multiple attribute decision support system based on the multiattribute methods developed for determining the efficiency of construction and reconstruction investment projects.
Highlights
The problem of construction investment is of paramount importance, because the investments determine the potential of construction and the structure of expenses
In calculating investments, beside the methods and models based on the data obtained in the study of income and expenses, the multiple attribute decision support methods assessing the efficiency are applied
The method PARK has serious disadvantages: It is applicable for a choice out of 3-5 alternatives only, because the method uses pair-wise comparisons of all variants; Criteria scales have only verbal estimations; The assumptions on possible allowed operations for decision maker (DM) information elicitation were not supported by the results of psychological research
Summary
The problem of construction investment is of paramount importance, because the investments determine the potential of construction and the structure of expenses. In calculating investments, beside the methods and models based on the data obtained in the study of income and expenses, the multiple attribute decision support methods assessing the efficiency are applied. Methods based on qualitative data not using a shift to quantitative variables This group comprises verbal decision analysis (VDA) methods (Larichev, Olson, 2001). The method PARK has serious disadvantages: It is applicable for a choice out of 3-5 alternatives only, because the method uses pair-wise comparisons of all variants; Criteria scales have only verbal estimations; The assumptions on possible allowed operations for DM information elicitation were not supported by the results of psychological research. Construction investment efficiency may be determined by solving a number of problems and applying decision methods (.rench et al, 1997; Jones, 1990; Brown, 1991). Are basically considered Mortgage Loans (.riedman, Ordway, 1997; Lumby, 1994), Mortgage Loans with Invariable Interest Rate, Mortgage Loans with Variable Interest Rate, Wrap Mortgage, Real Estate .inancing through Instalment Sale, Participiation Mortgage Loans, Real Estate .inancing while Establishing Joint Ventures (Tarasevich, 2000), Construction Mortgage Loans (.riedman, Ordway, 1997), Land Reclaim Mortgage Loan, Real Estate for Rent .inancing, .inancing Real Estate through Investors Consortium, Rural Building .inancing (Lunkevichius, Ustinovichius et al, 2001)
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