Optimal allocation of construction planning resources

Olusegun O. Faniran, Peter E D Love, Heng Li

Research output: Journal article publicationJournal articleAcademic researchpeer-review

23 Citations (Scopus)

Abstract

Efficient allocation of resources for construction planning activities requires construction planning resource requirements to be determined on a cost-effective and value-adding basis. However, although some research studies have indicated that increasing resource allocations to construction planning activities will lead to improved project performance, other research studies have indicated that investing in construction planning beyond an optimum point will lead to a deterioration in project performance. This study explored the concept of optimal planning of construction projects by examining 52 building projects undertaken in Australia. The relationships between planning input (ratio of planning costs to total project costs) and the probabilities of achieving poor performance and good performance were modeled using logistic, linear, and curvilinear regression analyzes. A probable optimum planning input based on the sample studied was derived. It is suggested that any additional planning efforts beyond this optimum point would be essentially wasted because the additional planning costs would not achieve any savings in project cost but merely add to the overhead costs and therefore increase the overall project cost. A model for optimal planning is presented and discussed.
Original languageEnglish
Pages (from-to)311-319
Number of pages9
JournalJournal of Construction Engineering and Management
Volume125
Issue number5
DOIs
Publication statusPublished - 1 Sep 1999

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Industrial and Manufacturing Engineering
  • Building and Construction

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