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Dr. Fikry Gomaa Aly Metwally :: Publications:

Finance-Based Scheduling: Tool to maximize Project Profit using Genetic Algorithms
Authors: Elazouni, A., and Metwally, F.
Year: 2005
Keywords: Computer aided scheduling; Financial management; Algorithms; Optimization models; Construction management.
Journal: Journal of Construction Engineering and Management
Volume: Vol. 131
Issue: No. 4, April (2005)
Pages: pp. 400 – 412.
Publisher: ASCE
Local/International: International
Paper Link: Not Available
Full paper Fikry Gomaa Aly Metwally_4.docx
Supplementary materials Not Available

Contractor’s ability to procure cash to carry out construction operations represents a crucial factor to run profitable business. Bank overdrafts have always been the major source to finance construction projects. However, it is not uncommon that bankers set a limit on the credit allocated to an established overdraft. Bankers’ interest rates and consequently contractors’ financing costs are basically determined based on the allocated credit limits. Furthermore, project indirect costs are directly proportional to the project duration which is affected by the allocated credit limit. Thus, the credit limit affects project financing costs and indirect costs which in turn affect project profit. However, finance-based scheduling produces financially executable schedules at specified credit limits while maintaining the demand of time minimization. Thus, finance-based scheduling provides a tool to control the credit requirements. This control enables contractors to negotiate lower interest rates which reduce financing costs. Thus, finance-based scheduling enables contractors to reduce project indirect costs and financing costs. This paper utilizes genetic algorithm’s technique to devise finance-based schedules that maximize project profit through minimizing financing costs and indirect costs.

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