Authors : Abdollah Sepahi, Safiye Bakhshani and Nasser Dehani
Abstract: Successful implementation of a civil construction project is highly affected by time and cost framework of a project. Delay in completion of civil projects will cause significant cost for all beneficiaries of the project. Furthermore, completion of the project will not be economically reasonable if the delay continues. Therefore, presentation of a model for evaluating these expenses is essential. The research methods used in this study are modeling and analysis method (based on Fundamentals of Engineering Economics), case study method and field study method. In this study, 3 models for economical evaluation of delay costs in civil projects are presented. Using these models which are based on engineering economics, a case study of IRI railway construction has been discussed. The outputs indicate that in a civil project, the rate of return and net present worth are reduced according with delay period. The results also indicate the maximum tolerable delay period for a project.
Abdollah Sepahi, Safiye Bakhshani and Nasser Dehani, 2016. Presentation of the Economical Evaluation Model of Delay Cost in Civil Projects: An Iran Railway Case Study. International Business Management, 10: 1058-1063.