Finance-based scheduling for multiple projects with multimode activities

Lack of financing and cash deficit is considered as a primary threat to contractor's financial management. Therefore, in case of insufficient cash, many contractors find it difficult to stick with the project schedule leading to extra overhead costs and liquidated damages. Mainly contractors deal with the project scheduling and financing as two independent functions of construction project management. Thus, the main objective of this research is to develop a multi-objective elitist Nondominated Sorting Genetic Algorithm (NSGA-II) for solving finance-based scheduling problem of multi-projects with multi-mode activities. A CPM scheduling model is constructed with its associated cash flow to calculate the values of the multiple objectives. The problem involves the minimization of conflicting objectives: duration of multiple projects, financing costs, and maximum negative cumulative balance. The designed optimization model performs operations of NSGA-II in three main phases: (1) Population initialization; (2) Fitness evaluation; and (3) Generation evolution. An application example is analyzed to illustrate the use of the model and to demonstrate its capabilities in generating optimum solutions. The model can be considered relevant for practitioners to use in large construction projects to make decisions regarding financing.