A comprehensive cash management model for construction projects using ant colony optimization

Abdel-Raheem, M, Georgy, M and Ibrahim, M 2013, 'A comprehensive cash management model for construction projects using ant colony optimization', in H. Kim (ed.) Proceedings of the 5th International Conference on Construction Engineering and Project Management, Orange County, California, USA, 9-11 January 2013, pp. 1-9.


Document type: Conference Paper
Collection: Conference Papers

Title A comprehensive cash management model for construction projects using ant colony optimization
Author(s) Abdel-Raheem, M
Georgy, M
Ibrahim, M
Year 2013
Conference name 5th International Conference on Construction Engineering and Project Management
Conference location Orange County, California, USA
Conference dates 9-11 January 2013
Proceedings title Proceedings of the 5th International Conference on Construction Engineering and Project Management
Editor(s) H. Kim
Publisher The University of North Carolina
Place of publication Charlotte
Start page 1
End page 9
Total pages 9
Abstract Cash management is a major concern for all contractors in the construction industry. It is arguable that cash is the most critical resource of all. A contractor needs to secure sufficient funds to navigate the project to the end, while keeping an eye on maximizing profits along the way. Past research attempted to address such topic via developing models to tackle the time-cost tradeoff problem, cash flow forecasting, and cash flow management. Yet, little was done to integrate the three aspects of cash management together. This paper, as such, presents a comprehensive model that integrates the time-cost tradeoff problem, cash flow management, and cash flow forecasting. First, the model determines the project optimal completion time by considering the different alternative construction methods available for executing project activities. Second, it investigates different funding alternatives and proposes a project-level cash management plan. Two funding alternatives are considered; they are borrowing and company own financing. The model was built as a combinatorial optimization model that utilizes ant colony search capabilities. The model also utilizes Microsoft Project software and spreadsheets to maintain an environment that incorporates activities, their durations, and other project data, in order to estimate project completion time and cost. Ant Colony Optimization algorithm was coded as a Macro program using VBA. Finally, an example project was used to test the developed model, where it acted reliably in maximizing the contractor's profit in the test project.
Subjects Building Construction Management and Project Planning
Neural, Evolutionary and Fuzzy Computation
Keyword(s) Cash Management
Cash Flow
Time-Cost Tradeoff
Optimization
Ant Colony Optimization
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