Schedules Optimization with the Use of Value Engineering and NPV Maximization

Abstract

Construction program, spatial, architectural, and structural decisions taken in the early stages of a project have a significant impact on meeting the goals and needs of the client. The use of principles and methods of value management allows for an in-depth analysis of the project assumptions from the investor’s perspective and leads to the best ratio of the project’s utility value/sustainability to the price of its implementation. However, analysis of literature sources allows to state that optimization of the economic value of the project takes place only in the preimplementation phase of the project. This paper presents the original concept of combining issues of construction project’s utility and economic value optimization. The model enables the maximization of the utility value of the subject of the project, taking into account its economic parameters. To support the implementation of the model, a schedule optimization procedure was developed using metaheuristic algorithm. The model was demonstrated on the basis of a case study. The presented proprietary approach to optimize the construction schedule taking into account the economic and sustainability of a construction project can be used in “design and build” projects, with particular emphasis on projects managed in the sustainable Project Management system.