No abstract

Privatized infrastructure projects have to demonstrate their financial and technical viability before they are undertaken. Although it is relatively easy to demonstrate the technical viability of an infrastructure project, the evaluation of the financial viability of a privatized infrastructure project is complex and challenging, mainly because of the uncertainties involved due to the project's scale, long concession period and complexity. Traditional methods, such as net present value (NPV) analysis, fall short in reflecting the characteristics of privatized infrastructure projects and the risks involved. This paper presents an option pricing based model, the BOT option valuation (BOT-OV) model, for evaluating the financial viability of a privatized infrastructure project. This quantitative model considers the project characteristics explicitly and evaluates the project from the perspectives of the project promoter and of the government when the project is under bankruptcy risk. Moreover, the model can evaluate the impact of the government guarantee and the developer negotiation option on the project financial viability.Privatized Infrastructure, Option Pricing Theory, Financial Decision-MAKING, Investment Evaluation,

Construction claims are considered by many project participants to be one of the most disruptive and unpleasant events of a project. Construction claims occur for various reasons. There is a need to understand the dynamic nature between construction claims and opportunistic bidding. An analytical model, the Claims Decision Model ͑CDM͒, based on ''game theory,'' was developed to study opportunistic bidding and construction claims. This model explains ͑1͒ how people behave during a potential or existing claiming situation, ͑2͒ how different claiming situations are related to opportunistic bidding behavior, and ͑3͒ what situations encourage or discourage opportunistic behavior. The results of this pilot study indicate that the equilibrium solution of a construction claim is to negotiate and settle, which concurs with most of the claim cases in the industry. The possible range of a negotiation settlement is obtained in this paper. The model provides the rationale for recent innovations to manage disputes. The model can also help project owners identify the possibility of opportunistic bidding, and can assist the project participants in analyzing construction claims.

No abstract

Construction knowledge can be communicated and reused among project managers and jobsite engineers to alleviate problems on a construction jobsite and reduce the time and cost of solving problems related to constructability. This paper proposes a new methodology for the sharing of construction knowledge by using Building Information Modeling (BIM) technology. The main characteristics of BIM include illustrating 3D CAD-based presentations and keeping information in a digital format and facilitation of easy updating and transfer of information in the BIM environment. Using the BIM technology, project managers and engineers can gain knowledge related to BIM and obtain feedback provided by jobsite engineers for future reference. This study addresses the application of knowledge sharing management using BIM technology and proposes a BIM-based Knowledge Sharing Management (BIMKSM) system for project managers and engineers. The BIMKSM system is then applied in a selected case study of a construction project in Taiwan to demonstrate the effectiveness of sharing knowledge in the BIM environment. The results demonstrate that the BIMKSM system can be used as a visual BIM-based knowledge sharing management platform by utilizing the BIM technology.