Introducing a fuzzy MCDM model for financial management in multiple project environments

Abstract

Purpose Statistics in the construction industry show that lack of timely injection of funds to projects by clients is one of the common problems confronted by contractors. This problem is intensified when contractors construct multiple projects simultaneously. In these situations, it is rational that contractors share their financial resources among projects according to project conditions and the firm’s vision. This study aims to propose a fuzzy multi-criteria decision making (MCDM) model for financial management in multiple project environments. Design/methodology/approach First, the project evaluation criteria are defined using exploratory study and interviews with experts. Second, the weights of criteria are determined based on company strategies. Then, each of the projects are evaluated in each criterion. Finally, the fuzzy weighted average approach is used to determine the proportion of each project from the financial resources. Findings The proposed model is prepared as an applicable model for general contractors to assign financial recourses among the multiple projects optimally. Originality/value As a lack of applicable model assigning the financial resources among the multiple projects, this study is one of the first research studies that proposed a fuzzy MCDM model to assign financial resources to multiple projects optimally.