Javid, M and Seneviratne, P N (2000) Investment risk analysis in airport parking facility development. Journal of Construction Engineering and Management, 126(4), pp. 298-305. ISSN 0733-9364
Abstract
Although parking revenue is a principal source of income, supply of parking infrastructure at airports is based largely on expected needs. Although that is a rational basis, high investment costs and management fees are requiring developers and financiers to carefully analyze investment risks. This paper focuses on sources of investment risk in airport parking infrastructure development and discusses the application of Monte Carlo simulation to estimate and understand the impacts of cash flow uncertainties on project feasibility. It is shown that cost overruns, which are common in construction project development, have the most significant impact on return risk.
| Item Type: | Article |
|---|---|
| Index terms: | construction project, cost overrun, risk analysis, estimate, project feasibility, Monte Carlo simulation, income, cash flow, revenue, infrastructure development |
| Subjects: | value management, modelling and simulation, financial and cost management, financial management, infrastructure engineering, environmental hazards, economic analysis, production management |
| Topics: | Project Management, Cost Management, Research Practice, Business Strategy, Engineering Principles, Sustainability |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here