Abstract
Lenders need to make finance decisions constantly regarding the allocation of funds to the contractors. Unfortunately, the literature is lacking structured contractor-finance optimization models that help lenders make decisions regarding the fund allocation to contractors. Arbitrary decisions never guarantee the efficient utilization of the lenders' fund and the fulfillment of the fund constraint. Moreover, fund allocations that are not based on the determination of the exact finance needs of the contractors result in either over or under-financed contractors. A multi-objective optimization approach is introduced which can be used by lenders to make decisions regarding the fund allocation based on the determination of the contractors' exact finance needs. The proposed fund allocation process fulfills the lenders' fund constraints and allows them to give priority to contractors of good record. The proposed model helps make decisions that minimize the financial risk born by the lenders and maximize the utilization of their fund.
| Original language | English |
|---|---|
| Pages (from-to) | 961-971 |
| Number of pages | 11 |
| Journal | Canadian journal of civil engineering |
| Volume | 40 |
| Issue number | 10 |
| DOIs | |
| State | Published - Jun 2013 |
Keywords
- Cash flow
- Finance
- Genetic algorithms
- Multi-objective optimization
- Project management
- Project scheduling
ASJC Scopus subject areas
- Civil and Structural Engineering
- General Environmental Science
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