Selected aspects of construction projects selection including risk estimation

The complexity and need for a comprehensive approach to construction projects programming helps in researching the different methods of the risk estimation for construction projects. The risk estimation, carried out at the planning stage, not only enables rational investment but also the rational project management during construction. The paper concentrates on the possibility of applying the multi-criteria analysis for the selection of construction projects taking the risks into account

Technical and economic aspects of revitalization of down-town tenement-houses in Wrocław

In the paper the authors examined the relations between the physical deterioration degree and the price of the tenement-houses in Wrocław. The researches concern the year’s 1991–2009. According to the following analyses: technical, technical-economic (concerning the relations between buildings technical condition and buildings price) and economic the authors have come the conclusions concerning the sensibility of the revitalization work. The authors also estimated the purchase limit profitability of the tenement-houses, which are going to be repaired and modernized or to be demolished and next to be built a new tenement-house. The direction of the engineering activities was shown. They could improve the economic effectiveness of the revitalized tenement-houses

Risk Analysis in Construction Project - Chosen Methods

AbstractThe risk is a measurable part of uncertainty, for which we are able to estimate the occurrence probability and the size of damage. The risk is assumed as a deviation from the desired level. It can be positive or, which most often happens, it can be negative. Therefore, the risks analysis is so important for project selection and coordination of construction work. The risk analysis is regarded as the analysis of adverse events even at the stage of planning and programming of a construction project. This analysis enriches the decision-making process and provides additional arguments, which help to select the optimal variant of a construction project using the Multi-Aspects approach. This article presents three different methods of the risk analysis as well as highlighting their disadvantages, advantages and primary areas of application (selection or pre-estimation). These methods differ in their methodology from each other. The verification was started from the simplest techniques using some qualitative variables. This method is based on the considerable subjectivity of a decision maker although it is relatively simple and easy to use. The analysis was finished on the statistical method, which determines the type of used data therefore it affects the quality of the results. The areas of application and analytical capacity of the listed methods are illustrated with the short examples, simultaneously outlining their characteristics from the analysis. The research problems, which are the canvas of application of the discussed methods are not mutually interrelated. They present different aspects of variants of the investment process

Effect of risk on economic efficiency of overcladding system

When a decision is taken about assembling an overcladding system on building external walls, an expected profit is calculated according to the economic discounting formulae. However, these formulae do not take into account the unplanned repair costs. The unplanned repairs have to be done to remove the defects which appear on a building wall overcladding during its service life. In order to do that the authors have performed the expert's surveys of technical condition of the existing overcladdings. These overcladdings were assembled on the external walls of 497 apartment buildings located in WrocÅ‚aw (Poland) in 1990.2000. The qualitative results of technical condition expert's surveys, their transformation into the quantitative values done according to the elaborated model and estimation of the risk related to the expected profit decrease are presented in the article. Rizikos įtaka ekonominiam pastato apdaro sistemos efektyvumui Santrauka Priimant sprendimus apie pastato iÅ¡orinių sienų apdaro įrengimÄ…, atsižvelgiama į pelnÄ…, kuris laukiamas įgyvendinus apdaro projektÄ…. Laukiamasis pelnas skaiÄiuojamas pasitelkiant ekonomines diskontavimo formules. Å ios formulÄ—s neįvertina neplanuotų iÅ¡laidų pastato apdarui remontuoti. Neplanuoti remontai turi bÅ«ti atliekami apdaro eksploatavimo periode atsirandantiems defektams Å¡alinti. Autoriai nusprendÄ— tirti Å¡iÄ… problemÄ… ir tam atliko egzituojanÄių pastatų apdaro bÅ«klÄ—s ekspertinį vertinimÄ…. 1990–2000 m. buvo tirtos 497 gyvenamųjų pastatų Vroclave (Lenkija) iÅ¡orinÄ—s sienos. Kokybiniai vertinimo rezultatai buvo transformuoti į kiekybinius, pasitelkiant iÅ¡samų autorių sukurtÄ… modelį. Remiantis pastaraisiais rezultatais, buvo įvertinta laukiamojo pelno sumažėjimo rizika. Rizikos vertinimas apraÅ¡ytas Å¡iame straipsnyje. Raktiniai žodžiai: rizika, ekonominis efektyvumas, sienų apdaras. First Published Online: 14 Oct 201

Użyteczność i zakres stosowania metody Earned Value Management przy realizacji kontraktów budowlanych

The Earned Value Method allows the prediction of future values of the total cost and duration of the construction project realization, and also it allows the early detection of the collisions between the schedule and the construction project budget. It is more often indicated its usefulness for monitoring and controlling the construction work progress in the time and cost formulation. It is used, in the indirect way, to control the risk in terms of the cost overruns of the construction project realization and in case of the failure to meet the deadline for completion of the construction project. The authors’ goal was not only to indicate the advantages of the method (widely discussed in the literature) but also to indicate some inaccuracies in the application of the Earned Value Method, which may affect the costs forecasting and the date of completion of the construction project. The conclusions are based on the analysis of several construction project realizations.Metoda Earned Value umożliwia przewidywanie przyszłych wartości całkowitego kosztu oraz czasu realizacji przedsięwzięcia, a także pozwala na wczesne wykrycie niezgodności pomiędzy harmonogramem i budżetem przedsięwzięcia. Coraz częściej podkreśla się jej użyteczność do monitorowania i kontrolowania postępu robót w ujęciu czasowo-kosztowym. W pośredni sposób wykorzystywana jest do kontroli ryzyka w aspekcie przekroczenia kosztów realizacji przedsięwzięcia i nie dotrzymania terminu zakończenia inwestycji. Celem autorów niniejszego referatu było nie tylko wskazanie szeroko omawianych w literaturze zalet metody, jak również uwypuklenie pewnych nieścisłości przy stosowaniu Earned Value, które mogą wpłynąć na prognozowanie kosztów i daty zakończenia przedsięwzięcia. Wnioski opracowano na podstawie analizy kilkunastu realizacji

Impact of the adopted strategy on the result of multi-criteria analysis of technology solution based on AHP (BOCR)

The complexity of problems and the necessity to find a comprehensive approach to their solution favours the search for various methods that support the decision making process in the construction industry. At present, the multi-criteria methods lead the way. They enable the assessment of the problem in many aspects and with taking into account qualitative and quantitative data. Moreover, these methods do not limit the decision-maker in terms of the number of considered variants as well as the scope and the type of adopted assessment criteria. The aim of the article is to present the procedure of assessment of proposed building material solutions with taking into account the division of criteria due to their character – benefits (B) and costs (C). It was shown the dependence adopted by the decision maker strategy on the final ranking of solutions using the BOCR approach in the AHP method

Impact of the adopted strategy on the result of multi-criteria analysis of technology solution based on AHP (BOCR)

The complexity of problems and the necessity to find a comprehensive approach to their solution favours the search for various methods that support the decision making process in the construction industry. At present, the multi-criteria methods lead the way. They enable the assessment of the problem in many aspects and with taking into account qualitative and quantitative data. Moreover, these methods do not limit the decision-maker in terms of the number of considered variants as well as the scope and the type of adopted assessment criteria. The aim of the article is to present the procedure of assessment of proposed building material solutions with taking into account the division of criteria due to their character – benefits (B) and costs (C). It was shown the dependence adopted by the decision maker strategy on the final ranking of solutions using the BOCR approach in the AHP method

Delays in construction works in Polish construction industry from the contractors’ point of view

The construction industry is sensitive to changing random conditions that determine the occurrence of various disturbances during the construction investment process. These disturbances are the source of numerous delays during realization of the construction project. The identification of the reasons for delays and their impact on the progress of construction works allows for the efficient management of the construction project and planning of protective measures, which reduce the risk of their occurrence. The purpose of this article is to identify and then to assess, on the basis of the conducted questionnaire survey, the impact of disturbances on delays in construction works. In addition, the factors were ranked in terms of the degree of impact on the construction project by calculating the rank of the factor

Range of aplication and limitations of the earned value method in construction project estimation

The considerable degree of complexity found in construction work, as well as project susceptibility to unpredictable conditions determines the need of ongoing progress monitoring and continuous time-cost analysis during the execution of work. Financial and material analysis, using the Earned Value method applied to the construction of an Underground Gas Storage Facility, including project risks which occurred during the project, helped to identify the advantages and limitations in application of this method of monitoring work progress