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Assessment of the Feasibility of Implementing a Construction Project at the Pre-investment Stage
Author
Kyiv National University of Construction and Architecture, Department of Organization and Business of Construction, Kyiv, Ukraine
Oleksii Molodko
Kyiv National University of Construction and Architecture, Department of Organization and Business of Construction, Kyiv, Ukraine
Viktor Pylypchuk
Kyiv National University of Construction and Architecture, Department of Organization and Business of Construction, Kyiv, Ukraine
Aleksiy Tugay
Kyiv National University of Construction and Architecture, Department of Organization and Business of Construction, Kyiv, Ukraine
Oleksandr Dubynka
Kyiv National University of Construction and Architecture, Department of Organization and Business of Construction, Kyiv, Ukraine
Abstract
The purpose of this study is to determine the feasibility of implementing a construction project at the stage of re-investment based on the principles of development in Ukraine. The methodology of this study was based on a survey that helped identify the key factors of investment budget overruns, as well as economic modelling of construction projects, which helped identify the relationship between risks and financial performance. The data obtained were analysed using correlation analysis to assess the impact of development principles on the effectiveness of management decisions. The findings of this study revealed that a significant number of construction projects face risks that exceed the originally planned budget. The main factors affecting budget overruns were changes in the regulatory environment, underestimation of materials and labour costs, and unpredictable external economic factors. Economic modelling has shown that companies that implement development principles can reduce the risk of budget overruns compared to those that do not. This indicates a significant positive impact of development on management decisions. The correlation analysis revealed a strong correlation between the implementation of development principles and the growth of return on investment.