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The analysis of statistical characteristics of construction costs

Juodis A., Stalioraitis P.

Foundations of Civil and Environmental Engineering

2006

No. 8

59-71

Construction cost estimating, control and analysis arc the main tools in construction project management. Construction cost estimating influences the final project effectiveness. Construction cost estimating goals, methods and accuracy differ according to the stage of construction project. Contractors should know what the dynamics and value of construction cost is in every stage of a construction project. The object of this research was the implementation of a project of a chain of petrol stations of the same contractor in Lithuania. According to the analysis of statistical characteristics of a chain of petrol stations construction bid price, cost, duration and profit, the contractor can estimate parameters and make decisions for future similar projects. The performed research and obtained results revealed that construction bid price of petrol stations in Lithuania depends on the occupied area and land plot. The offered subordination of the mathematical expression can be used practically estimating the construction bid price of petrol stations and adopting a decision regarding contractor's participation in the tenders.

Searching process modeling of international construction market segments

Juodis A., Siskina A., Stalioraitis P.

Foundations of Civil and Environmental Engineering

2005

No. 6

71-83

The development of globalisation processes has influenced all the countries of the world and all areas of human activity. In terms of globalisation, there is increasing international cooperation between companies and development of construction markets become more rapid. This stimulates competition between contractors and forces them to review their operation strategies. Taking the decision upon entering markets abroad it is necessary to estimate and evaluate important factors and criteria. The problem issue of this work is as follows: how to choose the right market segment in construction industry? This paper presents a new methodology developed for implementation and execution of formalized market search and target segment identification process. The target markets are identified according to the multiple criteria decision-making methodology (Game theory and models for selection of the definite alternative solution based on the highest efficiency). The work was focused on the analysis of construction markets in 3 countries: Germany, Lithuania and Russia (Kaliningrad region), which differ in many demographic, economic and political terms. Such situation provides possibilities for more effective capacity utilization in construction industry. Choosing the right way of entering a host country market and selecting the target market segment benefits the company in financial and legal aspects.