KSF-CA Correlation Matrix for Probabilistic Cashflow Model on Construction Project Financing in South Korea

Jin-hyuk Yoo, Dong-gun Lee, Hee-sung Cha

Abstract

In the construction industry, the main obstacle in successfully completing a project is a failure in identifying and responding the project risk factors. Especially for construction project financing (PF), many project practitioners are struggling in developing a cash-flow model by integrating the key risk factors for the subject project. This study has identified key success factors (KSFs) of construction project financing (PF) throughout an extensive literature review in collaboration with an industry survey. They have been further derived from Factor Analysis technique and qualified using Fuzzy-AHP method. Throughout the evaluation of the derived success factors in real building construction projects, a strong correlation has been identified between the score of each PF success factor and the level of success and/or expected rate of return (ROR). Using the result of this investigation, this study has been developing a correlation matrix for inter-relating each KSF and its corresponding cash account in order to effectively measure the financial viability of PF projects. With the help of this mechanism, the project stakeholders can reach more objective and transparent decision-making process. The contribution of this study will help decision makers of the PF project make a better decision and give a meaningful guidance in achieving more successful PF projects.

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Paper Citation


in Harvard Style

Yoo J., Lee D. and Cha H. (2015). KSF-CA Correlation Matrix for Probabilistic Cashflow Model on Construction Project Financing in South Korea . In Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-075-8, pages 383-388. DOI: 10.5220/0005253903830388


in Bibtex Style

@conference{icores15,
author={Jin-hyuk Yoo and Dong-gun Lee and Hee-sung Cha},
title={KSF-CA Correlation Matrix for Probabilistic Cashflow Model on Construction Project Financing in South Korea },
booktitle={Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2015},
pages={383-388},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0005253903830388},
isbn={978-989-758-075-8},
}


in EndNote Style

TY - CONF
JO - Proceedings of the International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - KSF-CA Correlation Matrix for Probabilistic Cashflow Model on Construction Project Financing in South Korea
SN - 978-989-758-075-8
AU - Yoo J.
AU - Lee D.
AU - Cha H.
PY - 2015
SP - 383
EP - 388
DO - 10.5220/0005253903830388