Comparative study of time-cost optimization

Construction planning is the most important phase in project lifecycle. Manpower, Materials, Machinery etc., should be planned during planning phase. Ideal tool used by construction planners are CPM& PERT methods to analyze and reduce the project duration. As the duration is reduced the direct cost of the project increases, this leads to the trade-off between the time and cost wherein the indirect cost of the project will decrease as the duration of the project reduces. There will be a particular point at which the minimum total cost of the project can be obtained at an optimum duration. Construction managers can explore this point at the planning stage to reduce the time and cost of the project. In this paper two techniques are used to achieve the time-cost relationship. The two techniques used are CPM (Critical Path Method) and Linear Programming Method. The CPM is done manually by reducing the duration of the critical path. The Linear Programming Method is solved by using two software which are M.S excel solver and Linear Program Solver (LiPS). The comparative analysis between the CPM and Linear programming method is done by using an example.