Decision framework for fast-track construction: a deterministic analysis

Abstract

A deterministic analysis framework that permits the computation of an upper bound on the constant dollar expenditure that should be made to fast-track a project to achieve a specified duration is presented. It employs a baseline plan which corresponds to the traditional method of sequential design, construct, commission and operate, and the economic principle that one will continue to spend as long as the return on the incremental investment equals or exceeds the minimum attractive rate of return. The analysis is based on a generalized definition of fast-track construction, which includes ouerlapping of the construction and revenue phases and acceleration as well as overlapping of design and construction. An example is giuen to illustrate application of the framework.