Agata Czarnigowska

Analysis of supply system models for planning construction project logistics

Abstract The paper discusses a number of construction project logistics problems, with focus on supply systems, and presents the results of recent survey of Polish contractors’ supply routines. On the basis of the survey, patterns of development of logistic systems have been described. The enclosed results of cost simulations indicate that outsourcing supply logistic processes, considering the current state of Polish construction market, may reduce costs. The paper emphasises that creating logistic guidelines of a project at its early stages of planning and then a design of integrated logistic service to the project may help find ways of making a construction project more effective.

Unit rate-based cost estimating – input and methods

The paper investigates the so-called “simplified methods” of construction cost estimating: from the simplest single-rate estimates to complex elemental and feature-based cost analysis. Method databases of recorded or calculated unit rates and a wide choice of data manipulation techniques, such as intuitive or mathematically supported case-based reasoning, statistical inference and non-parametric modeling are looked at. The consequences of using input from real-life projects and uniform purpose-made calculations (such as those published in Polish pricebooks) are also analyzed.

Modelling contractor’s bidding decision

Abstract The authors aim to provide a set of tools to facilitate the main stages of the competitive bidding process for construction contractors. These involve 1) deciding whether to bid, 2) calculating the total price, and 3) breaking down the total price into the items of the bill of quantities or the schedule of payments to optimise contractor cash flows. To define factors that affect the decision to bid, the authors rely upon literature on the subject and put forward that multi-criteria methods are applied to calculate a single measure of contract attractiveness (utility value). An attractive contract implies that the contractor is likely to offer a lower price to increase chances of winning the competition. The total bid price is thus to be interpolated between the lowest acceptable and the highest justifiable price based on the contract attractiveness. With the total bid price established, the next step is to split it between the items of the schedule of payments. A linear programming model is proposed for this purpose. The application of the models is illustrated with a numerical example. The model produces an economically justified bid price together with its breakdown, maintaining the logical proportion between unit prices of particular items of the schedule of payment. Contrary to most methods presented in the literature, the method does not focus on the trade-off between probability of winning and the price but is solely devoted to defining the most reasonable price under project-specific circumstances. The approach proposed in the paper promotes a systematic approach to real-life bidding problems. It integrates practices observed in operation of construction enterprises and uses directly available input. It may facilitate establishing the contractor’s in-house procedures and managerial decision support systems for the pricing process.

Minimizing Project Cost by Integrating Subcontractor Selection Decisions with Scheduling

Subcontracting has been a worldwide practice in the construction industry. It enables the construction enterprises to focus on their core competences and, at the same time, it makes complex project possible to be delivered. Since general contractors bear full responsibility for the works carried out by their subcontractors, it is their task and their risk to select a right subcontractor for a particular work. Although subcontractor management has been admitted to significantly affect the construction projects performance, current practices and past research deal with subcontractor management and scheduling separately. The proposed model aims to support subcontracting decisions by integrating subcontractor selection with scheduling to enable the general contractor to select the optimal combination of subcontractors and own crews for all work packages of the project. The model allows for the interactions between the subcontractors and their impacts on the overall project performance in terms of cost and, indirectly, time and quality. The model is intended to be used at the general contractors bid preparation stage. The authors claim that the subcontracting decisions should be taken in a two-stage process. The first stage is a prequalification – provision of a short list of capable and reliable subcontractors; this stage is not the focus of the paper. The resulting pool of available resources is divided into two subsets: subcontractors, and general contractors in-house crews. Once it has been defined, the next stage is to assign them to the work packages that, bound by fixed precedence constraints, form the projects network diagram. Each package is possible to be delivered by the general contractors crew or some of the potential subcontractors, at a specific time and cost. Particular crews and subcontractors can be contracted more than one package, but not at the same time. Other constraints include the predefined project completion date (the project is not allowed to take longer) and maximum total value of subcontracted work. The problem is modelled as a mixed binary linear program that minimizes project cost. It can be solved using universal solvers (e.g. LINGO, AIMMS, CPLEX, MATLAB and Optimization Toolbox, etc.). However, developing a dedicated decision-support tool would facilitate practical applications. To illustrate the idea of the model, the authors present a numerical example to find the optimal set of resources allocated to a project.

Updating Linear Schedules with Lowest Cost: a Linear Programming Model

Many civil engineering projects involve sets of tasks repeated in a predefined sequence in a number of work areas along a particular route. A useful graphical representation of schedules of such projects is time-distance diagrams that clearly show what process is conducted at a particular point of time and in particular location. With repetitive tasks, the quality of project performance is conditioned by the ability of the planner to optimize workflow by synchronizing the works and resources, which usually means that resources are planned to be continuously utilized. However, construction processes are prone to risks, and a fully synchronized schedule may expire if a disturbance (bad weather, machine failure etc.) affects even one task. In such cases, works need to be rescheduled, and another optimal schedule should be built for the changed circumstances. This typically means that, to meet the fixed completion date, durations of operations have to be reduced. A number of measures are possible to achieve such reduction: working overtime, employing more resources or relocating resources from less to more critical tasks, but they all come at a considerable cost and affect the whole project. The paper investigates the problem of selecting the measures that reduce durations of tasks of a linear project so that the cost of these measures is kept to the minimum and proposes an algorithm that could be applied to find optimal solutions as the need to reschedule arises. Considering that civil engineering projects, such as road building, usually involve less process types than construction projects, the complexity of scheduling problems is lower, and precise optimization algorithms can be applied. Therefore, the authors put forward a linear programming model of the problem and illustrate its principle of operation with an example.

Asphalt-aggregate mix handling process of porous pavement rehabilitation project

The paper presents a case study of an innovative method of porous pavement rehabilitation works. The innovation consists in applying an additional piece of plant to collect the supplied asphalt-aggregate mix and feed it pavers. Observations and measurements of construction process output collected during an A73 highway rehabilitation project in the Netherlands can be used for creation of asphalt-aggregate mix supply models and comparing efficiency of using certain plant sets.