The profit as in-company evaluation of the construction site effectiveness

The paper discuss the profit made by construction sites operated by one company as a measure of their effectiveness. The different types of cost, that should have been covered by income, were described. The distinction between indirect cost made on building site and indirect cost made by headquarter of a company were shown, as well as necessity of including both on them in calculating building site effectiveness. Three different method of assigning company overhead cost to the building site were shown and discussed. Their significant influence on building site profitability was emphasised and calculated for exemplary values. The necessity of calculating full cost for each building site operating by one company was discussed in the article too, by showing which information is necessary for a company management, a building site management and for company shareholders

The control of the mass of an aggregates deliveries and its impact on the effectiveness of earthworks execution

An essay presents the method and tool which can be used to control the mass of aggregates deliveries under construction site conditions. The method based on statistics allows determining the optimal quantity of transports to be inspected, required to estimate the total sum of loose materials deliveries assuming estimation error and confidence level conditions. Inspection based on described method allows to improve the effectiveness of earthworks execution as well as gives the possibility to evaluate the quality of the supplier

Client’s Expectations vs Contractor’s Pricing. Fair Prices or Bid Rigging

The road construction sector is a specific part of the construction industry. It happens very rarely that a section of a road is financed also by a private entity. The other factor distinguishing it – is a significant value of road construction contracts. The Client’s estimates of the value of the prospective contracts have to be based on the market prices in case of public procurement. However, this market is dominated by public orders. There is no comparison to the value of works ordered on the private part of the construction market, which is found more efficient by economists. Widely applied the “design and build” type of orders make the comparisons of the unit prices more difficult. The huge differences between the Client’s estimates and the winning prices in the road construction public tender procedures are the bases of speculations about the fairness of the procedures. These differences can have a varied origin. There are several reasons for them e.g. varied contractor’s risk, the size of the structure, type of order, the dynamics of the road construction market. Nevertheless, fraudulent practices can make the winning price much higher than the Client’s estimate. The article is an attempt to finding the limit i.e. what part of these differences can be explained by fair, market reasons. If the found limit is exceeded, it should make the Client carefully consider the offers placed. The analysis is based on collected data concerning almost 400 tender procedures for the sections of roads in Poland in 2014-2017

Modelling the set of earthworks machinery with the use of computer simulation

The paper presents the comparison of deterministic and stochastic approach for modeling the set of earthworks machinery. Simulation takes into account the normal distribution of cycle time and efficiency of machines and points out its influence for total construction works time. Results of the simulation indicate the need of identification time and efficiency deviation as a risk factor, which can cause delay whenever earthworks cycle includes the serial work of several machines

Estimating potential losses of the client in public procurement in case of collusion utilizing a MLP neural networks

There are two types of collusion which can harm Clients. This paper proposes two methods of detecting collusion’s and estimation a clients’ potential losses. The first is based on officially recommended factors for collusion detecting. The second one utilizes MLP artificial neural networks. Results are compared and discussed

The profit as in-company evaluation of the construction site effectiveness

The paper discuss the profit made by construction sites operated by one company as a measure of their effectiveness. The different types of cost, that should have been covered by income, were described. The distinction between indirect cost made on building site and indirect cost made by headquarter of a company were shown, as well as necessity of including both on them in calculating building site effectiveness. Three different method of assigning company overhead cost to the building site were shown and discussed. Their significant influence on building site profitability was emphasised and calculated for exemplary values. The necessity of calculating full cost for each building site operating by one company was discussed in the article too, by showing which information is necessary for a company management, a building site management and for company shareholders

The cost minimizing solution of the transportation problem for the location of the building machinery yard along the road under construction

This paper presents costs arisen from every-day transport of building machinery from the yard located by the road being constructed to the place of work. These costs are not directly associated with the income creating. The optimal choice of the place for the machinery yard can substantially lower these costs. The following two methods of finding the optimal place were proposed: based on the shortest distance and based on the lowest cost of building machinery self-transport. They were calculated for the exemplary data. Applying the method based on the lowest cost allows fi nding more than one location of machinery yard. The cost of applying more than one yard can reduce much more the costs of construction site

The methodology of technical due diligence report preparation for an office, residential and industrial buildings

The methodology of a technical due diligence preparation is presented in this paper. It comprises actions that have to be undertaken prior to formal agreement with party ordering due diligence preparation, building a team of consultants, data collecting, preparing analysis and handing over the report to the client. All important issues were described and supported by examples. As there are many types of building objects this paper is limited to office, residential and industrial buildings

Cost approach to the flow-shop construction scheduling

A flow-shop construction scheduling – especially for a higher number of tasks projected – requires the use of metaheuristic algorithms to find the optimal schedule. The criteria of optimality may vary as well as constraints assumed for the schedule. The paper presents base rules of the flow-shop scheduling as well as the methods of making the work of engaged brigades continuous. When the cost of work execution is analyzed, it can occur that the optimal schedule understood as providing the shortest total time of project execution or the shortest total slack times of working brigades is not the cheapest solution. The following cost generators are taken into account: a daily cost of each brigade (working or waiting for the work), the technology applied to work execution, penalties for not keeping the milestones. The model of a time-cost evaluation of the flow-shop time schedule is formulated, analyzed and discussed. For the illustration of the presented model, the exemplary flow-shop time schedule with some constraints assumed is analyzed with and without the lowest cost as a criterion of optimality