Optimizing strategy for repetitive construction projects within multi-mode resources

Estimating tender data for specific project is the most essential part in construction areas as of a contractor's view such as: proposed project duration with corresponding gross value and cash flows. Cash flow analysis of construction projects has a long history and has been an important topic in construction management. Determination of project cash flows is very sensitive, especially for repetitive construction projects. This paper focuses on how to calculate tender data for repetitive construction projects such as: project duration, project cost, project/bid price, project cash flows, project maximum working capital and project net present value that is equivalent to net profit at the beginning of the project. A simplified multi-objective optimization formulation will be presented that creates best tender data to contractor comparing with more feasible options that are generated from multi-mode resources in a given project. This mathematical formulation is intended to give more scenarios which provide a practical support for typical construction contractors who need to optimize resource utilization in order to minimize project duration, project/bid price and project maximum working capital while maximizing its net present value simultaneously. At the end of the paper, an illustrative example will be presented to demonstrate the applications of proposed technique to an optimization expressway of repetitive construction project.