1. S.N PATEL INSTITUE OF TECHNOLOGY AND
REASEARCH CENTER
CONSTRUCTION ENGINEERING AND MANAGEMENT
CONSTRUCTION RESOURCE MANAGEMENT
TIME-COST TRADEOFF
PREPARED BY
ZELALEM MOLLA ASSEFA
2. TIME-COST TRADEOFF
• What is tradeoff
It is a situational decision that involves diminishing or losing one quality, quantity or property of a set or
design in return for gains in other aspect
From this point we can initiate a simple idea about time-and cost, to minimize the duration of a project we
have to sacrifice un scheduled costs in return to gain minimum duration
.
3. CONTINUED
• Time cost trade off involves accelerated activity duration that are obtained by allocating more
resources, and lead to shorter project duration and lower indirect cost at the expense of higher
direct cost
4. OBJECTIVE OF TIME-COST TRADEOFF
• Reduce original project duration
• Recover early delays
• Avoid liquidated damage
• Free key resource early for other project
• Improve project cash flow
5. DIRECT AND INDIRECT COST RELATION WITH TIME
• Some types of costs the relationship is indirect proportion; for other types, there is a
direct trade-off. Because of this two types of cost there is an optimal project pace for
minimal cost.
• For direct cost such as material and equipment cost ,the pace of activities in increased in
order to decrease project completion time, the direct cost generally increase since more
resources must be allocated to accelerate the pace
• For indirect cost such administrative cost taxes tend to be relatively steady per unit time
over the life of the project as such total indirect cost decrease as the project duration
decrease
9. HOW TO REDUCE ACTIVITY DURATION
• Applying multiple shift work
• Working extended hours
• Offering incentive payments to increase the productivity
• Working on week ends and holidays
• Using additional resources
• Using materials with faster installation method
• Using. Alternate construction methods or sequence
10. IMPORTANCE OF TIME-COST TRADE OFF
• For the simultaneous management of cost and time in a project
• To reduce completion period of the project
• Reduce the indirect cost
• Crash critical activity duration