scholarly journals A hybrid mathematical programming model and statistical approach for bidding price decision in construction projects

2021 ◽  
pp. 1-22 ◽  
Author(s):  
Hamid Rastegar ◽  
Behrouz Arbab Shirani ◽  
S. Hamid Mirmohammadi ◽  
Esmaeil Akhondi Bajegani
Keyword(s):  
Mathematical Model ◽  
Real World ◽  
Cost Estimation ◽  
Construction Projects ◽  
Programming Model ◽  
Uncertain Parameters ◽  
Estimation Errors ◽  
Price Decision ◽  
Bidding Price ◽  
The Cost

Bidding price decision is a key issue for the contractors and construction companies. The success/failure of the contractors in competitive biddings is directly dependent on their bidding strategy. This paper aims to develop a hybrid statistical and mathematical modeling approach for determining the optimum bidding price in construction projects. By statistical analysis of historical data, some uncertain parameters like the number of competitors and the cost of the project are estimated. Then, a scenario-based mathematical model for bidding price decision is proposed. In order to present a model in more accordance with the real-world situations, factors like risk, minimum acceptable rate of return (MARR) and opportunistic behavior are taken into account. In order to achieve an insensitive solution to the change in the realization of the input data from the scenarios, a robust mathematical model is used. The performance of the model is evaluated through some numerical problems. Furthermore, sensitivity analysis of the key parameters and robustness evaluation of the model against uncertain parameters are conducted. To evaluate the model's effectiveness in real-world situations, a case study is analyzed by the proposed approach. Numerical results show that the proposed approach reduces the cost estimation errors and increases the average expected profit, which validates the applicability of the model in a real-world situation.

Stochastic Programming Model for Bidding Price Decision in Construction Projects

2021 ◽  
Vol 147 (4) ◽  
pp. 04021025
Author(s):  
Hamid Rastegar ◽  
Behrouz Arbab Shirani ◽  
S. Hamid Mirmohammadi ◽  
Esmaeil Akhondi Bajegani
Keyword(s):  
Stochastic Programming ◽  
Construction Projects ◽  
Programming Model ◽  
Price Decision ◽  
Bidding Price ◽  
Stochastic Programming Model

scholarly journals Model of Construction Subcontractors Selection with Time Windows for their Availability

2019 ◽  
Vol 65 (4) ◽  
pp. 295-307
Author(s):  
S. Biruk ◽  
P. Jaskowski ◽  
M. Krzemiński
Keyword(s):  
Mathematical Model ◽  
Resource Availability ◽  
Construction Projects ◽  
Programming Model ◽  
Time Windows ◽  
Mixed Integer ◽  
Time Cost ◽  
Trade Off ◽  
Availability Constraints ◽  
The Cost

AbstractMost construction projects involve subcontracting some work packages. A subcontractor is employed on the basis of their bid as well as according to their availability. A viable schedule must account for resource availability constraints. These resources (e.g. crews, subcontractors) engage in many projects, so they become at the disposal for a new project only in certain periods. One of the key tasks of a planner is thus synchronizing the work of resources between concurrent projects. The paper presents a mathematical model of the problem of selecting subcontractors or general contractor’s crews for a time-constrained project that accounts for the availability of contractors, as well as for the cost of subcontracting works. The proposed mixed integer-binary linear programming model enables the user to perform the time/cost trade-off analysis.

scholarly journals Cost prediction model based on system dynamics in water resource project

2019 ◽  
Vol 258 ◽  
pp. 02027
Author(s):  
Hirijanto ◽  
I Wayan Mundra ◽  
Addy Utomo
Keyword(s):  
Prediction Model ◽  
Cost Estimation ◽  
Construction Projects ◽  
Model Simulation ◽  
Secondary Data ◽  
System Dynamic ◽  
Cost Prediction ◽  
Cost Component ◽  
The Government ◽  
The Cost

Project’s cost is one of important components in project achievement. Because of the uniqueness of construction projects, cost estimation always differs from project to project. The rate of cost components always change over time make difficult to forecast the cost for the upcoming project. The cost component consists of many influencing variables where there is interrelationship each other affecting to the total project cost. This paper objective is to develop a cost prediction model to assist the project planners in cost estimation for future projects. System dynamic is one of the appropriate methods to analyse system behaviour with interrelationship referring to the historic data, so it is able to predict the future project. Developing the model, primary and secondary data are collected from previous studies, interview with the government planner and survey in Malang Regency. The model simulation is Brick work unit with its components. Data from last thirteen years are used to verify and validate the developed model by causal loop diagram as a basic method in system dynamic. The finding showed that the model is closed to real condition through the validation mechanism. The developed system is useful in decision making of budget planning based on work quantity.

scholarly journals The Analysis of Cost Estimation using Cost Significant Model on Bridge Construction in South Sulawesi

2021 ◽  
Vol 921 (1) ◽  
pp. 012073
Author(s):  
E Aprianti ◽  
S Hamzah ◽  
M A Abdurrahman
Keyword(s):  
Regression Analysis ◽  
Cost Estimation ◽  
Construction Projects ◽  
Steel Frame ◽  
Bridge Construction ◽  
South Sulawesi ◽  
The Cost ◽  
Total Project Cost ◽  
Total Project ◽  
Significant Model

Abstract One of the fundamental problems faced by the province of South Sulawesi is the factor of accessibility, so the role of bridges is quite important. For this reason, the budget planning for standard bridge construction projects also needs to be efficient in terms of preparation and accurate in terms of budget. The Cost Significant Model is one of the total construction cost estimation models that relies more on the prices that have the most influence on the total project cost as the basis for estimation. In general, this study uses data from steel frame bridge construction projects in South Sulawesi Province to formulate a mathematical model with linear regression analysis so that it can be used in the process of estimating similar projects going forward. The Estimation Model which is formed from the regression analysis and the Cost Significant Model in this study, namely; Y = 3.884 (X7) + 0.989 (X8) - 65515.372. With; Y = Estimated Total Cost (Rp/m); X7 = Reinforcement Work Cost (Rp/m); X8 = Steel Frame Structure Work Cost (Rp/m). Where this model can explain 99.7% of the total project cost with a cost model factor of 1.038. The level of accuracy (percentage error estimate) of the estimation results of the Cost Significant Model in this study ranges from - 1.46% to +2.45%.

scholarly journals Efficient Procedure to Scheduling Construction Projects at the Planning Phase

2019 ◽  
Vol 7 (1) ◽  
pp. 60-80 ◽  
Author(s):  
Matiwos Tsegaye
Keyword(s):  
Cost Estimation ◽  
Construction Projects ◽  
Cost Optimization ◽  
Efficient Procedure ◽  
Start Date ◽  
Time Optimization ◽  
Planning Phase ◽  
Short Period ◽  
The Cost ◽  
Construction Schedule

Abstract The construction industry is one of the most important activities that contributes towards the economic growth of any nation. However, the sector has been experiencing problems of cost and time overruns, particularly the problems are significant for the lowest-bid awarded construction projects in the developing countries where inappropriate planning is reported to be one of the major causes. Thus, the paper aims at developing an integrated scheduling approach for construction projects during the planning phase from a project owner’s perspective. The proposed approach integrates cost estimation and schedule in light of practical activity precedence and mathematical cost optimization using different project commencement dates. The study has shown that cost and time optimization model could yield impractical results unless double precedence relations (start-to-start plus finish-to-finish) are imposed between some activities such as trench excavation and pipe laying. It has also demonstrated that the cost and time budgeted during the planning phase would substantially deviate from actual if the planned construction start date slips from the plan, particularly for short period projects. The proposed approach demonstrated in the paper can sufficiently allow planning engineers to develop a comprehensive construction schedule so that the cost and time overruns in the lowest-bid awarded construction projects can be reduced. The paper provides empirical insights into how a robust construction schedule is developed from an owner’s perspective. Cost-time optimization and risk analysis results obtained from manual computation might reduce the reasonable accuracy of the desired cost and schedule integration unless each activity is assigned its own calendar.

Campaign Optimization through Mobility Network Analysis

2015 ◽  
pp. 33-75 ◽  
Author(s):  
Yaniv Altshuler ◽  
Erez Shmueli ◽  
Guy Zyskind ◽  
Oren Lederman ◽  
Nuria Oliver ◽  
...  
Keyword(s):  
Mathematical Model ◽  
Network Analysis ◽  
Real World ◽  
Service Provision ◽  
Political Campaigns ◽  
Mobility Data ◽  
Proposed Model ◽  
Geographical Regions ◽  
Marketing Service ◽  
The Cost

Optimizing the use of available resources is one of the key challenges in activities that consist of interactions with a large number of “target individuals”, with the ultimate goal of affecting as many of them as possible, such as in marketing, service provision and political campaigns. Typically, the cost of interactions is monotonically increasing such that a method for maximizing the performance of these campaigns is required. This chapter proposes a mathematical model to compute an optimized campaign by automatically determining the number of interacting units and their type, and how they should be allocated to different geographical regions in order to maximize the campaign's performance. The proposed model is validated using real world mobility data.

scholarly journals THE FORMATION PROCEDURE OF THE ESTIMATED CONSTRUCTION COSTS OF ROOM FUNCTION GROUPS

2018 ◽  
pp. 315-321
Author(s):  
N. SAMAL
Keyword(s):  
Cost Estimation ◽  
Capital Investment ◽  
Construction Projects ◽  
Building Construction ◽  
Preliminary Design ◽  
Construction Costs ◽  
Investment Volume ◽  
Calculation Methodology ◽  
Definition Of ◽  
The Cost

The article is concerned with the problem of cost estimation for multifunctional construction projects on the stage of pre-investment feasibility study. For addressing issues such as the definition of capital investment unto the property assets the author considers the procedure of construction cost estimation on the base of the cost indicators of room function groups. On a research basis the author has developed the calculation methodology of the cost indicators of room function groups. Room function groups present the assembly of spatially connected facilities and communication passages which are focused on define operations functions accomplishment. There is the procedure of the application of room function groups costs for the definition of the investment volume in building construction in the phase of poorly detailed preliminary design.

scholarly journals Composite Criticality in Machinery Fleet Management of Construction Projects

2020 ◽  
Vol 312 ◽  
pp. 02003
Author(s):  
John-Paris Pantouvakis ◽  
Alexander Maravas
Keyword(s):  
Cost Estimation ◽  
Construction Projects ◽  
Fleet Management ◽  
Construction Operations ◽  
Construction Machinery ◽  
Activity Duration ◽  
Machine Reliability ◽  
Worker Performance ◽  
The Individual ◽  
The Cost

During construction operations, fleet management aims at maximizing the uptime and efficiency of construction machinery while also minimizing the cost of ownership through lifecycle planning and management. In the deterministic approach, the theory suggests that one type of machinery is considered to be critical. However, taking into account the real circumstances under which projects are performed with issues such as machine reliability, worker performance, and/or errors in estimating the scope of work, it is evident that there are significant limitations to the existing approach. Hence, to address this issue, uncertainty in fleet productivity is modelled with fuzzy set theory. In this context, the notion of composite criticality under which the productivity of a fleet depends on more than one type of machinery because of the fluctuations of the individual productivities is introduced. To this purpose, a simple case study is presented to illustrate this concept. It is concluded that this approach leads to a better understanding of the estimation of activity duration and cost estimation which in turn means better project scheduling and financial planning.

Campaign Optimization through Mobility Network Analysis

2017 ◽  
pp. 695-728
Author(s):  
Yaniv Altshuler ◽  
Erez Shmueli ◽  
Guy Zyskind ◽  
Oren Lederman ◽  
Nuria Oliver ◽  
...  
Keyword(s):  
Mathematical Model ◽  
Network Analysis ◽  
Real World ◽  
Service Provision ◽  
Political Campaigns ◽  
Mobility Data ◽  
Proposed Model ◽  
Geographical Regions ◽  
Marketing Service ◽  
The Cost

Optimizing the use of available resources is one of the key challenges in activities that consist of interactions with a large number of “target individuals”, with the ultimate goal of affecting as many of them as possible, such as in marketing, service provision and political campaigns. Typically, the cost of interactions is monotonically increasing such that a method for maximizing the performance of these campaigns is required. This chapter proposes a mathematical model to compute an optimized campaign by automatically determining the number of interacting units and their type, and how they should be allocated to different geographical regions in order to maximize the campaign's performance. The proposed model is validated using real world mobility data.

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