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A METHOD FOR COSTS EVALUATION OF INVESTMENT PROJECTS FOR THE CONSTRUCTION OF UNDERGROUND STRUCTURES

Zhanna A. Frankevich

Abstract

Currently there is no uniform method for the economic evaluation of construction and exploitation costs of underground structures that would incorporate not only construction costs, but also costs associated with possible accidents and damage during exploitation. At the same time, we believe that in such cases costs should be evaluated in advance, because these situations often result in catastrophes with incredibly high liquidation costs. In this paper our method for evaluation of costs of underground construction is proposed. In the light of the high safety standards being set for construction and exploitation of underground structures a need for evaluation of exploitation costs is justified. We propose that investment decisions should be made based not only on possible economic income and costs, but also on probable economic losses during the underground structure expatiation. An economic mathematical model for calculating probable economic effect of investment decisions has been developed for this approach. Limitations for this model have been determined based on probable construction time, design work costs, underground construction costs, underground construction repair costs, and costs of maintaining a high security profile while the structure is in use. Applying this method to evaluation of underground construction investment project costs will allow for minimization of probable economic loss during the exploitation of that structure, and will raise overall quality of investment decisionmaking.

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DOI resolver: doi.org/10.5593/sgem2019/5.3/s21.001

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