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Finance-based scheduling of construction projects using integer programming
Faculty
Science
Year:
2004
Type of Publication:
Article
Pages:
15-24
Authors:
Elazouni, AM, Gab-Allah, AA
DOI:
10.1061/(ASCE)0733-9364(2004)130:1(15)
Journal:
JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT-ASCE ASCE-AMER SOC CIVIL ENGINEERS
Volume:
130
Research Area:
Construction \& Building Technology; Engineering
ISSN
ISI:000188736200002
Keywords :
scheduling, computer programming, construction industry
Abstract:
Construction scheduling is the process of devising schemes for sequencing activities. A realistic schedule fulfills the real concerns of users, thus minimizing the chances of schedule failure. The minimization of total project duration has been the concept underlying critical-path method/program evaluation and review technique (CPM/PERT) schedules. Subsequently, techniques including resource management and time-cost trade-off analysis were developed to customize CPM/PERT schedules in order to fulfill users' concerns regarding project resources, cost, and time. However, financing construction activities throughout the course of the project is another crucial concern that must be properly treated otherwise, nonrealistic schedules are to be anticipated. Unless contractors manage to procure adequate cash to keep construction work running according to schedule, the pace of work will definitely be relaxed. Therefore, always keeping scheduled activities in balance with available cash is a potential contribution to producing realistic schedules. This paper introduces an integer-programming finance-based scheduling method to produce financially feasible schedules that balance the financing requirements of activities at any period with the cash available during that same period. The proposed method offers twofold benefits of minimizing total project duration and fulfilling finance availability constraints.
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