Applying Intelligent Portfolio Management to the Evaluation of Stalled Construction Projects

Abstract

Much research in the construction industry is based on the concept of a unique project; hence, such concepts (or philosophy) present the construction project as a unit of analysis for the entire completion process that is usually delivered independently. Most decision support tools in construction have been designed at the project level rather than for construction institutions that often implement many projects simultaneously. Typically, these projects have common objectives that create dependencies among them. Then, the success of one project depends on other projects and the existing interrelationships among them. Thus, construction institutions still need to deal with their projects from a portfolio perspective,which requires strategic management at a portfolio level. This paper employs resource management techniques to allocate resources to manage construction portfolios. A case study targeted strategic decision making about financing projects that have stalled. The final recommendation of this paper is to use development and planning software to serve and support strategic decisions in institutions with concurrent stalled projects.

Keywords

• intelligent portfolio management
• modern portfolio theory
• allocated budget projects
• unnamed budget projects
• intelligent management for construction portfolios