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Feasibility Analysis Simulation Model for Managing Construction Risk Factors

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Abstract

The importance of architectural planning phase has been arisen because of the changing conditions of construction market in Korea. The existing feasibility cannot fulfill its purpose in construction development projects because they are based on intuitive approach rather than systematic approach. The purpose of this study is to make a prototype of feasibility model to be a good investment. To build the model, first, risk factors which can be occurred in project had to be selected. Second, risk factors were divided into several groups in basis of characteristic risk. Third, economical risk factors were input on financial analysis. Then, to catch the relevance and influence of all risk factors, influence diagram and decision tree was made. Finally, sensitivity analysis was activated, then what the critical factors were, and how those factors could be solved. Through these procedures, the feasibility model that was made in this study could include both quantitative and qualitative factors. This model is expected to be used as a guide of feasibility study and is to serve systematic frame in planning and feasibility stage.

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... A number of previous studies investigated the decision-making process in the construction sector [3][4][5][6][7]. Additionally, go/no-go decision models for decision-making concerning different sectors are also available [8][9][10][11][12][13][14]. ...
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