Marzouk, M and Hamdala, D (2025) Phasing real estate projects considering profitability and customer satisfaction. Engineering, Construction and Architectural Management, 32(5), pp. 2942-2970. ISSN 0969-9988
Abstract
Purpose: The aggressive competition in the real estate market forces real estate developers to tackle the challenge of selecting the best project construction phasing alternative. The real estate industry is characterized by high costs, high profit and high risks. The schedules of real estate projects are also characterized by having large number of repetitive activities that are executed over a long duration. The repetitiveness, long duration of execution, the high amounts of money involved and the high risk made it desirable to leverage the impact of changes in phasing plans on net present value of amounts incurred and received over the long execution and selling duration. This also changes the project progress, and delivery time as well as their respective impact on customer degree of satisfaction. This research addresses the problem of selecting the best phasing alternative for real estate development projects while maximizing customer satisfaction and project profit. Design/methodology/approach: The research proposes a model that generates all construction phasing alternatives and performs decision-making to rank all possible phasing alternatives. The proposed model consists of five modules: (1) Phasing Sequencing module, (2) Customer Satisfaction module, (3) Cash-In calculation module, (4) Cost Estimation module and (5) Decision-making module. A case study was presented to demonstrate the practicality of the model. Findings: The proposed model satisfies the real estate market's need for proper construction phasing plans evaluation and selection against the project's main success criteria, customer satisfaction and project profit. The proposed model generates all construction phasing alternatives and performs multi-criteria decision making to rank all possible phasing alternatives. It quantifies the score of the two previously mentioned criteria and ranks all solutions according to their overall score. Research limitations/implications: The research proposes a model that assist real estate market's need for proper construction phasing plans evaluation and selection against the project's main success criteria, customer satisfaction and project profit. The proposed model can be used to conclude general guidelines and common successful practices to be used by real estate developers when deciding the construction phasing plan. In this study the model is based on business models where all the project units are sold, rental cases are not considered. Also, the budget limitations that might exist when phasing is not considered in the model computations. Originality/value: The model can be used as a complete platform that can hold all real estate project data, process revenues and cost information for estimating profit, plotting cash flow profiles, quantifying the degree of customer satisfaction attributable to each phasing alternative and providing recommendation showing the best one. The model can be used to conclude general guidelines and common successful practices to be used by real estate developers when tackling the challenge of selecting construction phasing plans.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | customer satisfaction; decision-making; phasing; profitability; real estate projects; sensitivity analysis |
| Index terms: | estimating, real estate development, methodology, decision-making, competition, computation, project data, profit, revenue, success criteria, cash flow, construction phasing, cost estimating, sensitivity analysis, duration, real estate, delivery time, profitability, customer satisfaction, module, business model, net present value, cost information, satisfaction, platform, case study |
| Subjects: | economic analysis, assessment methods, market analysis, environmental hazards, time analysis, research methods, accounting and finance, architectural elements, economic development, digital design, real estate economics, financial and cost management, project delivery, business, computational methods, data collection methods, decision analysis, project controls, financial management, service delivery |
| Topics: | Project Management, Risk Management, Sustainability, Design Practice, Urban Studies, Digital Applications, Time Control, Cost Management, Business Strategy, Research Practice, Stakeholder Management |
| Descriptive scope: | 4 PCTE |
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