A Portfolio Inpired Metric for Project Selection in Construction Management

  1. Hernandez, Cesar 1
  2. Pajares, Javier 1
  3. López-Paredes, Adolfo 1
  1. 1 Universidad de Valladolid
    info

    Universidad de Valladolid

    Valladolid, España

    ROR https://ror.org/01fvbaw18

Revista:
Organization, Technology and Management in Construction: An International Journal

ISSN: 1847-5450,  1847-6228

Any de publicació: 2011

Tipus: Article

DOI: 10.5592/OTMCJ.2011.1.6 GOOGLE SCHOLAR lock_openAccés obert editor

Altres publicacions en: Organization, Technology and Management in Construction: An International Journal

Objectius de Desenvolupament Sostenible

Resum

In this paper we adopt a portfolio management approach to make project selection decisions easer in construction management. In particular, we suggest to extend value-based analysis to project selection within a Portfolio of related projects. We define a new value based indicator, “Project Value to Portfolio Value” (PV2PV) to asses the added valueof a new project to the value of the firm’s actual portfolio of projects. The PV2PV indicator allows us to establish the modified ranking of the individual projects of the portfolio should a new incoming project be included in the firm’s portfolio of standing projects. The approach not only is useful for construction corporations but for some financial corporationslike Spanish banks, which after the construction bubble have become “project and facility owners”.

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Informació de finançament

This research was financed by the Spanish Ministry of Science and Innovation (TIN2008-06464-C03-02) and the Regional Government of Castile and Leon (VA009A06 and GR251/09).

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