Schedule Compression and Time-Cost Trade-Off - Construction Project Scheduling and Control - page 240

do this, he may sell the project as is (perhaps by auction) and use the proceeds to
pay off his debts. All of these options come with some negative consequences, but
the developer/owner may have to choose the lesser of several evils. Unfortunately,
many investors stretch themselves too much—mostly motivated by greed in a situation
exacerbated by miscalculations—and these options may be unfeasible or insufficient
for them. Their only option then is to declare bankruptcy, which does not help in the
long run. In other types of projects, where the project is one entity that cannot be
partially built (e.g., a high-rise building, factory, or shopping center), completing a
portion of the project may not be a viable option.
To minimize the risks of such a situation, there are several recommended mea-
sures. Since this is not a book on economics or risk management, we will focus only on
scheduling issues. In brief, when the economy is booming, the response to the market
demand must be quick. This can be achieved by having a ready plan and accelerated/
optimum project schedule. When the economy is slumping, it may be a good idea to
slow down the pace of the project or even “hibernate” until conditions improve.
In this context, we will discuss the selection of the starting point of the project
and its activities' durations and timing, which that determine the optimum duration of
the project, coupled with the optimum (least) cost. Such a discussion applies not only
to recessions and slow economic times but also to all conditions. However, the appli-
cation of the principle must be adjusted to suit the market and the owner's conditions.
Project Scheduling in Extreme Weather Regions
In regions where there are harsh weather conditions (extreme cold/heat, excessive
rain, sand storms, hurricanes and floods), it is desirable to have the construction—or
at least the first portion of it (that is performed under no roof, for building projects)
—occur during the preferred season. This can be achieved by applying the idea of opti-
mum scheduling: choosing the starting point of the project and activities' durations
and timing that result in optimum schedule and/or cost.
Optimum Scheduling
Optimum scheduling is defined as selecting the project's starting point and the com-
position of the durations and timing of its activities, within logic constraints, which
results in an optimum schedule and least cost while maintaining the project's scope
and quality.
Optimum scheduling is explained here just as a concept. The concept is open to
more research, in terms of both theory and application.
Any activity needs resources, mainly labor, materials, and equipment. Each type
of resource is subject to a group of influencing factors:
1. Supply and demand : All resources are subject to the supply and demand
rule, which usually has both predictable and unpredictable consequences.
For example, many locales have a high season for construction (usually when
the weather is mild), and demand is heavy at that time. Also, demand may
become unexpectedly high following a disaster (war, earthquake, flood, etc.)
or economic boom, or as the result of other factors. Demand for special trades
may spike following a governmental regulation, such as the American with