Contractor-finance decision-making tool using multi-objective optimization

  • Ashraf Elazouni*
  • , M. A. Abido
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

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 languageEnglish
Pages (from-to)961-971
Number of pages11
JournalCanadian journal of civil engineering
Volume40
Issue number10
DOIs
StatePublished - 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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