Choice: Decision 1 Contract Amount and Profit
Objective: Based on historical project data, we found that, at a certain threshold, the profit rate for GC tends to decrease with increasing contract amount. (Office mid-high rise, steel) This will be used to get a rough sense of the preferred job to pursue when we want to go after the profit rate or revenue tier.
Model: Building floor area and Number of floors, which is a simple way to calculate gross floor area, is the primary metric to calculate the amount of work. There are numerous factors to model when going deep, but this time, I incorporated high-profit jobs (roof and facade) to raise the profit rate and make it more realistic.
Design Variables: Building floor area and Number of floors matter because construction costs increase with floor height.
Constants: Building cost per sqft, base profit rate, and profit rate reduction coefficient are locked in this case. Also, assume the same floor area applies to all floors.
Evaluators: GC Project Contract Amount and GC profit rate directly hit business performance, as well as the benefit of the development of construction ahead.