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Portfolio Value Optimization Model for Sustainable Construction Projects
Anjamrooz, Taha
Anjamrooz, Taha
Date
2021-05
Author
Advisor
Type
Dissertation
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Description
A Doctor of Philosophy Dissertation in Engineering Systems Management by Taha Anjamrooz entitled, “Portfolio Value Optimization Model for Sustainable Construction Projects”, submitted in May 2021. Dissertation advisor is Dr. Sameh El-Sayegh. Soft copy is available (Thesis, Completion Certificate, and AUS Archives Consent Form).
Abstract
The continuous growth and development threaten the world’s natural resources and lead to several adverse effects. The construction industry is widely blamed for its negative impact on the environment. Yet, developers/clients do not consider sustainability criteria when selecting their portfolio of projects. Instead, they rely on traditional criteria that maximize their profit. Based on the review of related literature, there is a lack of portfolio selection methods that incorporate sustainability as key criteria. This research aims at developing a new portfolio value optimization model that integrates sustainability, organization benefit realization, and project success criteria. Twenty-six selection criteria were identified based on the literature review. These criteria were classified into two groups: sustainability group and organization benefit realization, and project success group. The sustainability group consists of three pillars: environmental, social, and economical. The second group consists of two subgroups: organization benefit realization and project success. A questionnaire was then developed and distributed to key developers/clients in the United Arab Emirates (UAE) construction industry. The Analytic Hierarchy Process (AHP) was used to determine the weight of the identified selection criteria based on 34 responses. The results show that the sustainability group is more important with a weight of 0.537 compared to the organization benefits and project success criteria with a weight of 0.463. The top six selection criteria include energy use, material use, health and safety, strategic fit, profitability and organizational risk. Three portfolio value optimization models are then developed. Model A combines Project Screening Matrix (PSM) with AHP. Model B is an integrated AHP and Linear Programming (LP) model, while Model C uses Genetic Algorithms (GA). The proposed models can be used to determine the optimum solution based on the organization’s constraints. A real case study is presented to demonstrate the application of the proposed models. The research is valuable as it encourages developers to consider sustainability as key criteria in their portfolio selection, and that, in turn, results in more sustainable construction industry. The research fills an identified gap in the literature and proposes new selection criteria and models.