Dynamic cost modeling for mega projects

There is a recurring problem of cost overrun on mega engineering projects with a budgeted cost of $1 Billion or more. Examples of mega projects include dams, hydro electric projects, and high speed rail projects. The basic reason for cost overrun can be attributed to underestimation of project cost, increases in material and labor cost, increases in financing cost, and problems with project management and environmental factors. Construction Management deals with how to effectively plan and control construction activities such that the total project can be delivered within schedule and under budget. Using mathematical models, the best possible time and resource for each activity with consideration of both engineering and financial factors can be decided; as such, the entire project delivery is kept on time and under budget. The basic reason for this thesis based research is to find ways to improve and apply proper analytical techniques in construction management and in financial planning in order to identify optimum solutions to resource utilization over the project development cycle (including equipment materials, labor and money). The objective is to facilitate the completion of mega project on time while at the same time ensuring that cost overruns on mega projects are kept at a minimum level.

Faculty Supervisor:

Dr. Ming Lu

Student:

Prashant G Kakarlamudi

Partner:

Draxware Inc.

Discipline:

Engineering - civil

Sector:

Finance, insurance and business

University:

University of Alberta