Project Penalty Cost Management, Based on Activity Sensitivity Analysis (BASA)

Document Type : Original Article


Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Najafabad, Iran


Existence of delays is always an inseparable part of projects and subject of fundamental disagreements among their stakeholders in all countries. As delay in projects is equal to increased costs, thus, by having delay and spending too much cost out of the pre-planned cash flow, a project can even reach a point that it will get out of profit. In the present study the researchers believes that, risk of delays should be managed, minimized, shared, transferred or accepted, but it cannot be ignored. Therefore, it must be predicted, covered, managed and optimized. Now, the fact that any delay and prolongation of project time results in significant qualitative and quantitative costs more than the initial estimates shows importance and necessity of research in this area. By providing an innovative method with the help of the Work breakdown Structure, Baseline, Hierarchical Technique and Data Envelopment Analysis (DEA), the researchers will control the risk of projects and even prevent them from occurring.


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