Cash-Flow Schedules Optimization within Life Cycle Costing (LCC)

Jerzy Rosłon, Mariola Książek-Nowak, Paweł Nowak and Jacek Zawistowski
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Jerzy Rosłon: Civil Engineering Faculty, Warsaw University of Technology; 00-637 Warsaw, Poland
Mariola Książek-Nowak: Civil Engineering Faculty, Warsaw University of Technology; 00-637 Warsaw, Poland
Paweł Nowak: Civil Engineering Faculty, Warsaw University of Technology; 00-637 Warsaw, Poland
Jacek Zawistowski: Polish Association of Building Managers, 00-688 Warsaw, Poland

Sustainability, 2020, vol. 12, issue 19, 1-14

Abstract: Investment and construction plans, architectural and construction decisions, and spatial and technology-related decisions made at the early stages of a project have a significant impact on meeting the investment goals and customer expectations. Decision making is a very time-consuming and complicated process (due to the complexity of construction processes). The whole difficulty comes to specifying the appropriate criteria for assessing the given activities, providing answers to the questions of the decision-making bodies. A set of appropriate criteria and mathematical tools (such as computer algorithms with multi-criteria analysis) can significantly improve and accelerate the decision-making process. This article combines ESORD (an IT tool that allows you to compare different types of solutions based on mathematical calculations) with the Monte Carlo method. The developed approach can help the investor to optimize their cash-flow schedule. The original method enables the client to select a construction project variant characterized by the best economical and sustainable parameters, while taking into account customers’ demands.

Keywords: cash flow; construction project; multi-criteria decision-making; optimization; investment variants; sustainability; LCC—Life Cycle Costing (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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