Optimization of Investment Costs in Construction by Planning the Time for Implementing Activities
Dragomir Stefanov, PhD

Abstract
Investment projects for construction or reconstruction of buildings and facilities are often characterized by a high volume of investment costs, numerous different construction and erection activities and tasks, as well as long periods of implementation. Observations show that, in general, in Bulgaria insufficient attention is paid to the timing of implementation of the activities as well as to the necessary financial, material and human resources. This leads to a number of negative effects for investors and end-users, such as delays in implementation, increased investment costs, and more. This article describes an author's model for optimizing investment costs in construction projects by deploying non-critical activities in the process with a certain time advance before the latest possible time for the implementation thereof. Thus the low risk of delay project implementation and optimization of the present value of the investment cost are combined. The goal of the model is to accurately determine the duration of this time advance depending on the size of the risk of delay in executing the individual activity, the investment spending for its performance, and the additional cost per unit time delay of the investment process as a whole.

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