The Increases of Market Demand and the Choice of the Construction Time on City Infrastructure Project - the Positive Research on Chinese Cases

摘要

The current decision-making process for construction projects does not systematically study on the timing of investment. Under the principia of maximize the social and economic benefits, this paper analyzes some problems related with construction timing in a growing demand market. These problems include the affection of construction timing to the project profits, the conditions of the existence of the optimal construction timing to a project, and the method to determine the optimal construction timing, etc. A mathematical model of project construction timing and its profits is presented this paper. The model concerns many influential factors, such as, project age, construction time, capital cost, market demands, discount rate etc. Finally this paper quantitatively analyzes the affective characteristics and degrees of construction timing to the project profits, and the method to determine the optimal construction time of a project in different growing demand markets.