SIMBASE: An Economic Justification Tool Using Project-Based Simulation

Abstract

This research endeavor is focused on the development of SIMBASE to support the construction contractors decision-making process regarding the implementation of automation technology into a construction process. SIMBASE is a project-based simulation model integrated with database system. It was developed in order to incorporate the Total Expected Profit (TEP) method. The TEP method, modified from the net present value method, is adopted to justify the automation technology from an economical perspective. SIMBASE simulates cash flows over the life cycle period by calculating total expected profit based on expected income from project bids and expected costs of the technology. Project-based simulation, when compared to activity-based simulation, means that all events in the simulation are generated at the project level, rather than simulating microscopic activities. Since construction activities are mainly comprised of discrete projects, TEP can be calculated on the basis of project bid income versus project cost. SIMBASE was applied to the drilled shaft foundation process for highway bridge construction in the Texas Gulf Coast region. Two cases of drilled shaft foundation processes were simulated in order to represent the characteristics of alternative technologies. The TEP for the selected alternative technology varied, depending on a geological conditions and assumed project bid winning ratio.