Profit Maximization and Strategic Management for Construction Projects

Abstract:

Profit maximization is the first goal for any construction company whether it is stated directly or hidden in between the strategic management lines. At the same time construction projects are known for frequently being over budget and behind schedule. As it is known the resources are limited not only for the contractors, but also for the clients. In order to allow construction companies to make a profit on projects they need to practice intelligent approaches and find ways of minimize its costs. Traditional approaches no longer serve the industry and informed decision making is important for any construction company to be profitable and stay in the market.

In the mission of helping the industry in the process of informed decision-making and strategic management a decision-support tool is developed. The aim of the tool is to help in deciding on optimal resource allocation for any construction project with consideration of resource availability and the stakeholder guidance. The decision-support tool takes into consideration the technical aspects of projects as well its business perspectives for cash-flows and activity planning. The tool can be used for project contract management as well, since it provides the information necessary to consider for having a successful project.

Within its constraints the tool allows to analyze the sustainability compliance of projects if such imposed or pioneered. As such the decision-support tool can aid the construction management industry for optimal decision-making in strategic management.

PMI Talent Triangle Skill: Strategic and Business Management

Speaker

• Hakob G. Avetisyan