Simulating Optimization of Time-Cost in Construction Project Based on Nash Equilibrium

Abstract

A construction project composed of a series unique events is a group of given goals set which should be achieved by the limited resources during a certain period. These characteristics of the construction project put forward a number of requirements to project managers, especially in the control of construction time and cost. Fortunately, the network graph provides a reasonable method of project plan to managers. It can display the project activities graphically and describe the priority relationships between activities, which put a great effort for project managers to pay more attentions to the most critical activities. But, there are many uncertain factors affecting the cost and the construction time of the project, which will destroy the normal execution of the original network planning. Therefore, during the actual construction managers have to revise the original network graph repeatedly. Even in some medium scale projects, the production and rapid renewal of project network graph are also very complex, at the same time the time-cost equilibrium has been the most important problem for managers to solve during renewing. To make a rational decision fast, modern computer simulation technology and Nash equilibrium principle are used for analysis and a example demonstrates that this method is feasible.