Parametric analysis of the financing cost in a building project

Warszawski, A (2003) Parametric analysis of the financing cost in a building project. Construction Management and Economics, 21(5), pp. 447-459. ISSN 01446193

Abstract

A parametric model is presented for the evaluation of financing cost in a construction project. The cost can be assessed at a very early stage of the project's design. The main parameters that are examined are the duration of the project, its pattern of cost and sales distribution, the cost of owner's equity capital and of external debt. Three financing options are examined and their effect on the financing cost is evaluated. The influence on the cost of financing of the main decision variables, such as the construction duration or the profit margin, is also examined.

Item Type: Article
Uncontrolled Keywords: construction; construction loan; construction project; credit line; financing; loan
Index terms: financing, construction project, profit, duration, option, parametric analysis, owner
Subjects: project controls, decision analysis, sociology, production management, data analysis and analytics, economic analysis
Topics: Time Control, Project Management, Research Practice, Business Strategy, Stakeholder Management, Risk Management
Descriptive scope: 3 PCA

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