Multi-Criteria Analysis of the Efficiency of Construction Investments

Abstract

The analysis of the functions of the Lithuanian cities and town's shows that there occur quite a number of incidental and false steps both when constructing new building and using old ones to meet the existing needs. One of the most complicated problems of today is the technical, economical and social criteria-based estimation of the construction of new buildings or comprehensive renovation of old buildings, such estimation being closely connected with the social requirements and the prospects of the development of a town or city in question. An optimisation system of constructing new buildings and renovating old ones, which would look into different variants of using a building and help to state the most suitable variant, could speed up renovation and increase the new buildings construction volume as well as raise the efficiency of the activity of construction companies and investors. The use of the methods of multi-criteria estimation of the efficiency of construction investments increases the possibilities of planning the city development and renovation as well as the possibilities of marketing and enables to speed up reconstruction of the old town. The article gives the algorithm as well as the key principles of the multi-criteria estimation of the efficiency of construction investments. It considers the principles of formation of efficiency showings and determination of their significance based on experimental estimates. The efficiency of variants is determined based on the use of a combination of multi-criteria optimisation methods. The final conclusion on the efficiency of investment variants is made based on the method of repeated multi-criteria optimisation offered by the author. There was developed a program package enabling to make all necessary calculations and to analyse the obtained results.