Impact of budget uncertainty on project time-cost tradeoff

doi:10.1109/TEM.2005.844924

機構典藏 > College of Engineering > Graduate Institute & Department of Civil Engineering > Journal Article > Item 987654321/44807

Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/44807

Title:	Impact of budget uncertainty on project time-cost tradeoff
Authors:	Yang, I-tung
Contributors:	淡江大學土木工程學系
Keywords:	Chance-constrained programming;project management;risk analysis;statistical estimation;time-cost tradeoff
Date:	2005-05
Issue Date:	2010-03-26 17:07:23 (UTC+8)
Publisher:	Piscataway: Institute of Electrical and Electronics Engineers (IEEE)
Abstract:	Any project has to be supported financially. The budget allocated to the project, however, is subject to uncertainty due to various financial, market, and political risks. The present paper incorporates budget uncertainty into project time-cost tradeoff. The proposed model formulates financial feasibility as a stochastic constraint, transforms it into a deterministic equivalent in the case of normal, beta, or triangular distribution, and solves the equivalent accordingly. The direct result is a minimum time-cost curve, which relates the shortest project duration to different levels of budget. The present study shows that a higher degree of budget uncertainty represents a tighter financial constraint and, thus, needs extra contingency duration. Moreover, if the financial constraint has to be met at a higher probability level, extra contingency costs are necessary to ensure an on-time completion. An actual remodeling project is used to demonstrate the application.
Relation:	IEEE Transactions on Engineering Management 52(2), pp.167-174
DOI:	10.1109/TEM.2005.844924
Appears in Collections:	[Graduate Institute & Department of Civil Engineering] Journal Article

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