Optimizing the Project Delivery Time with Time Cost Trade-offs

While to minimize the overall project cost is always one of the objectives of construction managers, to obtain the maximum economic return is definitely one the ultimate goals of the project investors. As there is a trade-off relationship between the project time and cost, and the project delivery time directly affects the timing of economic recovery of an investment project, to provide a method that can quantify the relationship between the project delivery time and cost, and identify the optimal delivery time to maximize economic return has always been the focus of researchers and industrial practitioners. Using genetic algorithms, this study introduces an optimization model that can quantify the relationship between the project delivery time and cost and furthermore, determine the optimal delivery time to maximize the economic return of the project. The results provide objective quantification for accurately evaluating the project delivery time and cost, and facilitate the analysis of the economic return of a project.

Authors:

• Wei Lo
• Ming-En Kuo

Keywords:

• Time-Cost Trade-Off
• Genetic Algorithms
• Resource Integration
• Economic return.

References:

[1] C. W. Feng, L. Liu,and S. A.Burns, "Using genetic algorithms to solve
construction time-cost trade-off problems," J. Comput. Civ. Eng.,vol. 11,
no. 3, 1997, pp. 184-189.
[2] Holland, J. H. Adaptation in natural and artificial systems. Univ. of
Michigan Press, Ann Arbor, Mich.,1975.
[3] A. B. Senouci,and N. N.Eldin, "Use of genetic algorithms in resource
scheduling of construction projects," J. Constr. Eng. Manage. , vol. 130,
no. 6, 2004, pp. 869-877.
[4] J. E.Kelly, "Critical-path planning and scheduling: Mathematical
basis,"Operational Res., 1961, pp. 296-320.
[5] R. Reda,and R. I. Carr,"Time-cost trade-off among related activities,"J.
Constr. Eng. Manage., vol. 115, no. 3, 1989,pp. 475-486.
[6] B. Holt, L. M. Fu, "Rule generation from neural networks," IEEE Trans.
on Sys., Man and Cybernetics, vol. 8, no. 3, 1955, pp. 54-63.