Contract Amount and Profit
Step 1 - Generative Design Framework
- Design Decision 1: Contract Amount and Profit
- Design Variables
- Number of floors in the building
- Building floor area (or one Length of the floor)
- Evaluators
- GC Project Contract Amount
- GC profit rate
- Most Important Tradeoffs to Consider
- After a certain switch point, the profit rate for GC tends to decrease as the contract amount increases. (Office mid-high rise, steel)
- Design 2: GC and Sub team size and productivity
- Design Variables: Building structure, Building use, contract amount range, Operating Income, Gross floor area, Steel amount
- Evaluators: GC worker avg team size, Sub worker avg team size, GC profit rate, Sub Profit Rate, GC worker productivity (contract amount/person), Sub worker productivity (contract amount/person)
- Most Important Tradeoffs: A bigger worker team size increases productivity but decreases profit rate.
- Design 3: Steel construction crane
- Design Variables: Steel column weight, Beam weight in capacity borther, Number of steel pieces, Base floor demention
- Evaluators: Crane cost, Crane preferred type, Steel work duration
- Most Important Tradeoffs: Cost of crane and schedule
Step 2 - Generative Design Study
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.
Step 3 - Generative Design Study Results
- Contract Amount and Profit Rate Tradeoff
- Provide a brief explanation: Contract Amount and Profit rate show a linear relationship. The trade-off illustrated would impact the design decision about which metric to focus on from a business perspective. Moreover, certain achievement points, such as gross revenue rank, affect ENR. Maximizing profit while maintaining rank would help.
- An image of your Dynamo Study Graph is as below.
