Metaheuristics for multi-mode capital-constrained project payment scheduling

► We model the multi-mode capital-constrained project payment scheduling problem with four payment patterns. ► We develop two versions of tabu search and simulated annealing for the problem and compare their performance with that of other two heuristic algorithms. ► Loop nested tabu search algorithm is the most promising procedure for the problem studied among the five algorithms. ► Increasing initial capital availability, payment number, payment proportion, or project deadline will increase contractor's NPV and contractor has a decreasing marginal return as initial capital availability rises. ► Contractor's NPVs in milestone event based payment pattern are not less than those in the other three payment patterns.