Construction Investment Projects Research Articles

Portfolio management for investment projects in the construction industry

The Russian business community has realized the need for project/targeted programme management procedures; therefore, the demand for customized project-oriented management methods goes up. In the meantime, this demand is not supplied in full, and the supply is far from being efficient. Project management methodologies need further improvement, including development of portfolio management processes applicable to investment projects developed and implemented in the construction industry. The article considers General approaches to the formalization of the management of portfolios of investment–construction projects. For the main groups of processes portfolio management (“Formation and alignment”, “Monitoring and control” and “Support and development”) deals with their constituent sub-processes. The proposed decomposition can be used for both portfolio construction and investment projects and also has an invariant character, which allows extending the proposed approaches to other system target–oriented and project–oriented management.

Competence Model and Modern Trends of Development of the Russian Institute of Technical Customer

Article considers modern maintenance and development of the management actor by the investment-construction projects of the technical customer. Urgent problems of the formation of Institute of the technical customer establishment are allocated. Elementary competence model is presented: based competences of technical customer, model of the primary competence, example of the operational level of the model. Analysis of the development of the Institute of the technical customer was performed: compliance with current realities of investment-construction activities, improvement of contractual relations, compliance with international standards, state participation, creation of the single technical customer. Necessity of development of competence models for the urgent justification of professional standards is assessed. The possibility of modeling of the competencies and functions of technical customer in approach to the FIDIC-model was revealed. Possibility of usage of the competence model of the technical customer on the stage of building in terms of public-private partnership. Results show the direction for further researches.

Global Market Competitiveness of Korea Construction Company

Korea's overseas construction has been developed mainly quantitative growth to qualitative growth than in recent years to enter the overseas construction market starting from entering Thailand in 1965. But look at the flow of current in the overseas construction market, construction companies are simply resource development in developing countries and underdeveloped countries are capital scarce, not only requires the construction business, the private power generation project construction funds to the contractor to demand an increase in investment development projects, such as Development trend because it is foreign investment construction projects, including the financial forms, such as requiring up to one trillion months has increased its importance is growing gradually. These overseas construction market and in view of the trends in resource development market, Korea construction company stable revenues in the future overseas construction creation and sustainable growth, and by national activate the investment development overseas construction projects in order to reliably ensure in conjunction with the resource development of the resource Korea International competitiveness of construction companies, there is a need to ensure the revival construction market, resource exploitation rights. This study investment development International theoretical concepts of construction projects and properties, overseas the advancement than to identify entry strategies such as the construction market system improve settlement and competitiveness of Korea construction company, of high value-added investment development through the development of overseas construction projects based on the fact that the provision of electricity, including qualitative leap forward in the future is to achieve the investment development overseas construction business expansion plan enabled construction companies in Korea.

THE MODELLING OF ORGANIZATIONAL STRUCTURES OF MANAGEMENT BY REALIZING INVESTMENT CONSTRUCTION PROJECTS

The authors consider the modeling of organizational structures by virtue of interaction between the basic participants by realizing of investment construction projects. This process is directed at the complex analysis of a problem of quality management by creating of building goods taking into account modern project management tendencies. The topicality of problem is obvious as by realizing of investment construction projects there is a liberal share of uncompleted projects, and in the completed projects actual values considerably exceed budgeted capital expenditures. The introduced model allows managing the project per quality system in all phases of the investment construction project‘s life cycle. It promotes refinement of building goods, improves the rate of successfully completed projects with actual values near budgeted.

Formation of the Mechanism of Facilitating and Enhancing of Economic Security of Investment Projects in Construction of Underground Facilities

The article provides an algorithm of functioning of the process of facilitating and enhancing of economic security of investment projects in the construction of underground facilities. There were considered an interconnection of management functions in the process of management and resource allocation technique in the two-level organizational system, provided the mechanism for facilitating and enhancing of economic security of investment projects.

Research of Instruments for Financing of Innovation and Investment Construction Projects

Under the conditions of financial area globalization, organizations face an acute problem – how to find the best instrument for the financing of innovation and investment construction projects. The banking sector and the securities market have accumulated sufficient financial assets that can be used to finance this kind of projects in the sphere of construction with the help of such instruments as investment lending, project financing, securities issue.To justify the need to use the above-mentioned instruments in the construction industry, the authors have analyzed the approach and methods of fundraising of construction projects. The authors have presented the dynamics of the amount and rate of the financing of construction projects. Depending on the segment of construction, the authors have suggested a classification map of project financing instruments, depending on their timing, membership and possibility of implementation in the form of a public and private partnership. The benchmarking of instruments for the financing of innovation and investment projects has revealed their advantages and disadvantages, recommendations have been drawn up for choosing the optimal instrument for the financing of construction projects.

Latent Risks During the Process of Implementation of Investment Projects in Construction of Underground Facilities

The article provides the results of the research of the appearance factors of latent risks during the process of management and implementation of the investment and construction project as exemplified by underground development. There were considered and analyzed the appearance factors of latent risks during the process of management and implementation of the investment and construction project.

The Mechanism of the Project Financing in the Construction of Underground Structures

This article presents the results of the research project of the mechanism of the project financing for investment projects in underground construction Taking into account the advantages and disadvantages of the project, there were studied the basic stages and components of the process of project financing, its main participants and sponsors. There were also studied three main types of project financing, depending on what level of risk the lender takes over.

THE EVALUATION SYSTEM OF DESIGN SOLUTIONS FOR RESIDENTIAL PROPERTY ON THE PRE-INVESTMENT STAGE THROUGH NEURAL NETWORK TECHNOLOGY

Ever since the Soviet Union design solutions were evaluated according to different criteria and indicators. At the present stage of evaluation systems of design solutions stands systemengineering doctrine is allocated. It is complemented by the theory of efficiency and financial sustainability investment project in view of the general market concept. Also great attention is paid to the virtual object modeling. It is urgent to include the behavior prediction of an investment construction project model at each stage of its life cycle. The high cost of all phases of this life cycle makes it necessary to calculate the feasibility of the investment. Very urgent to do it as accurately as possible and before we start of design works on the stage of the investment plan evaluation. Belarus has legislated pre-investment stage of construction project development. To evaluate the design solution at this stage is necessary to develop an investment justification, a project management plan and a business plan. They will evaluate and will compare several options for future objects by the complex. This requires not only time, but considerable financial costs. In order to optimize the process to develop an evaluation system design solutions based on existing projects. It allows the customer (investor) choose design solutions to build the object without developing of pre-design documentations for several options. This system it is advisable to try out the example of apartment house building with the assistance of the national fund of project documentation and objects-analogues data bank. The developed evaluation system of design solutions for residential real estate objects in the pre-investment stage is supposed to use the theory of neural networks and neyroprogramming. This system bases on the input parameters projects. The hidden layer neurons are trained to choose suitable projects of apartment houses with their classification. The projects will be classified depending on the summary significance of their main output parameters. As a result, the customer receives the predicted basic parameters of the future investment project without developing a complex pre-design documentation.

The Overall Risk Assessment and Management: Implementation of Foreign Investment Construction Megaprojects by Russian Development Companies

The article describes a practical procedure of the overall risk efficient management in the course of implementation of investment construction megaprojects (ICPs) by Russian development companies considering overseas market operations.On the one hand, the dual nature of risk, is expressed in terms of likelihood to suffer certain economic losses (net risk), on the other hand, it is a possibility to gain a significant income under conditions of acceptable risk limits and, consequently, ensure financial stability of the business entity under consideration. The cross border index shall be considered in the calculations for the purposes of implementation of an investment construction project at an overseas market.A project can be considered as completed provided that the previously identified goals considering previously established restrictions on the final product quality, cost parameters and overall risk were accomplished. Project results shall comply with the developer's business plan considering interests of all investment process participants. This, in its turn, can be achieved by carrying on specific management functions.The proposed procedure of the overall risk assessment and management provides for application of special techniques and instruments that allow to take into account the uncertainty factor at all stages of implementation of an investment construction project in the best possible way.

Methods of Motivation Improvement and Effectiveness Increase on the Example of Construction Industry Enterprises

The main purpose - the classification of theories associated with incentives of the labor, organizational forms of construction facility (complex), analysis of the basic groups of methods for improving motivation, efficiency and productivity to the decisive role of the human factor (communication, cooperation, coordination, participation, commitment). A key factor influencing the reduction of construction time, is recognized as the factor of “management continuity”, the essence of which boils down to the need to manage the progress of the investment construction project by developer. factor of management is considered by the overwhelming majority of experts as the most important in regard to the effect on the increase in labor productivity, on the efficiency increasing the intensity of construction, profitability, i.e. affecting the performance of construction activities. The basic models of impact on the natural person (individual) level is based on the fact that the performance is determined by factors including: the ability, diligence and effort. The effect of these three factors at work in the construction division of the area and its performance is largely determined by the system objectives, tasks, operations, training and standards (OTOTS), as well as the general management of the planning process, leadership, organization, control and adaptation (PLOCA) of the investment construction company. Presented results of a comparison of four methods of motivation: monetary, target, business image (“goodwill”) and intellectual property. Incentive systems are not suitable for all occasions. They are not necessary to ensure AEL. Most construction companies today are still far from acceptable levels of effectiveness. To improve effectiveness, need to return to the fundamentals. The system of incentives or profit distribution should be implemented only after the organization captured the fundamentals, AEL achieved, considerable time and effort given to the process of effective business planning.

Framework for assessing cable car construction investment projects: Examining investment projects in Taiwan

The use of low-carbon evaluation indices for tourist attractions facilitates the promotion of low-carbon tourism. However, balancing tourism and environmental considerations has become critical to the development of the tourism market. Compared with road vehicles, cable cars are environmentally friendly, convenient, and economical. This study presents a framework for evaluating cable car development projects on the basis of the following aspects: (a) determining guidelines for cable car stations and route layouts, (b) establishing a logical framework for assessing the feasibility of cable car systems, (c) identifying station assessment items, and (d) evaluating the assessment items for potential routes by applying the analytic hierarchy process. These aspects can facilitate executing thorough and pragmatic assessments of cable car development projects.

ANALYZING PROCUREMENT ROUTE SELECTION FOR ELECTRIC POWER PLANTS PROJECTS USING SMART

The decision of selecting the appropriate procurement/delivery system for large investment construction projects is a critical and challenging task for clients, and therefore a significant factor for the project’s success. Complex projects as electric power plants can involve managing multiple contracts or subcontracts simultaneously or in sequence. The aim of this paper is to develop, and analyze a decision support tool to select the most efficient procurement/delivery system for multiple contracts Combined Cycle Power Plants (CCPP) constructed in Egypt and funded by the publicsector. This process involved the identification of various procurement routes, followed by the utilization of quantitative values developed in accordance with the requirements of the multi-criteria decision analysis technique known as simple multi-attribute rating technique (SMART). Results revealed that the procurement/delivery system with the highest score, for all contractual packages, is the integrated project delivery method (IPD) under which other procurement/delivery methods could be utilized such as performance-based contracting (PBC), and construction management (CM). Further in this research, a sensitivity analysis approach was adopted to validate the IPD selection, and to determine the most critical criterion and the most critical measure of performance for each contractual package.

Правовые механизмы взаимодействия органов государственной власти и органов местного самоуправления с субъектами экономической деятельности в инвестиционной сфере при осуществлении капитальных вложений

The article considers the dynamics of the federal legislation that regulates investments in capital construction projects: principles of town-planning and investment activity, the order of acceptance and execution of decisions in the sphere of construction and capital repairs, interaction between public bodies, economic operators, and citizens. On the basis of the analysis of the federal laws on investment activity and the Town-planning code of the Russian Federation the author draws conclusion on the necessity of a comprehensive adjustment of the legislation for this sphere of economic activity. Such adjustment should affect two major areas. On the one hand there is the protection of interests in proper environment of public-law entities’ population. The achievement of this goal will provide finding the balance of interests of the population and investors in town-planning design standards and public procedures for the adoption of all town-planning decisions. On the other hand, there is the protection of investors’ legitimate interests consisting of establishing unambiguous legislative regulations that provide protection of their investments.

METHODS OF JUSTIFICATION OF ECONOMIC EFFICIENCY OF CONSTRUCTION PROJECTS

Different methods of calculating the payback period of investment funds are considered in this article. This indicator takes no less important significance, along with other factors at the estimation of economic efficiency of alternative variants of investment projects. Because exactly it determines the rate of return of the enclosed capital. Paid special attention to the calculation of the payback period of investment in construction projects.

Maturity Of Project Management In Polish And Foreign Construction Companies

Abstract The paper describes a problem of project maturity of Polish and foreign construction companies. They were analyzed by their ability to execute construction investment projects. Survey results refer to issues related to the organizational culture and challenges connected with an improvement of the processes of project management for construction. Generation Y employees, their value, and their role at work were discussed in particular. It was underlined that modern managers should be able to profit from skills of Generation Y and to employ and retain the best of them in order to build a competitive advantage of the company. It was revealed that a success of the company is connected with an increasing level of project maturity as a condition for a successful project management.

Construction Procurement and State Government Strategy: Aligned or Disconnected?

Australian state governments are engaging in strategic planning processes and publishing departmental and/or overall state strategic plans. One means of achieving the goals outlined in these strategic plans is via public procurement processes. Investments in construction projects by governments are strategic in nature and made to create infrastructure, which enables the provision of public services. This article investigates the contribution that construction procurement across the five Australian state governments who expend the most money on infrastructure makes towards the achievement of government strategy. The research draws on interviews with experienced project managers to assess whether public sector construction procurement is aligned or disconnected with publically stated government strategies.

Quasi Float Time Revealing when Evaluating Construction Schedules Based on Discounting

The article gives reasons for the calculation method of horizon planning based on the analysis of space-cost analogy. The latent regularities have been found out to make it possible to define the functional dependence between planning horizon and discount rate which is used for investment construction projects performance evaluation. Derivation of the formula has been presented herein, which allows calculating the changes in work in the function duration due to quasi float time of its start provided discounted estimates of the up-to-date cost of work are invariant.

Research on the Influence of Deep Foundation Pit Excavation on Neighboring Buildings

With the development of society and economy, China's investment in construction projects is increasing, which requires the construction and management staff to improve their professional level, to develop a more scientific construction plan to ensure construction quality, and ultimately to the construction goal. Especially in deep foundation excavation process, it not only needs to upgrade the technological level of the excavation, but also needs to enhance the impact of researches on the approaching buildings to make the appropriate preparations to reduce adverse effects on the surrounding buildings, which meets the actual needs of construction, to ensure building construction safety. By exploring the impact of deep excavation on adjacent buildings, the paper makes the construction workers deeply understand the importance of deep foundation construction work.

Accounting “Pure” Risks in Early Stage of Investment in Construction Projects with Energy Efficient Technologies in Use

Construction projects with energy-efficient technologies in use are systems that require more detailed analysis of potential risks than it could be in the evaluation of other construction projects. For that matter it is necessary to take into account non-economic "pure" project risks that are possible in the spheres, which traditional risk management does not consider in-depth. The traditional management of such "pure" risks comes down to estimating the extent of insurance coverage and redundancy in their implementation. Creation of user-friendly program could help investors to assess pure risks quickly and qualitatively and significantly reduce their time and cost spends.