Revolutionizing construction investments by managing technological risks for economic efficiency.
The article suggests a new way to manage risks in construction investments to improve economic efficiency. Instead of adjusting discount rates, the researchers propose adjusting cash flow values directly using statistical data from projects. By focusing on "technorisks" related to construction works, they recommend monitoring contractor activities, determining risky factors, and adjusting net present value. This approach aims to help accurately assess and control construction risks, ultimately enhancing the economic efficiency of construction investments.
