Integrated Knowledge Management Model and System For

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Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

Contents lists available at ScienceDirect

Engineering Applications of Artificial Intelligence


journal homepage: www.elsevier.com/locate/engappai

Integrated knowledge management model and system for


construction projects
L. Kanapeckiene a, A. Kaklauskas b,n, E.K. Zavadskas c, M. Seniut d
a
Department of Construction Economics and Property Management, Vilnius Gediminas Technical University, Sauletekio av. 11, Vilnius LT-10223, Lithuania
b
Institute of Internet and Intelligent Technologies, Vilnius Gediminas Technical University, Sauletekio av. 11, Vilnius LT-10223, Lithuania
c
Vilnius Gediminas Technical University, Sauletekio av. 11, Vilnius LT-10223, Lithuania
d
Institute of Internet and Intelligent Technologies, Sauletekio av. 11, Vilnius LT-10223, Lithuania

a r t i c l e in f o a b s t r a c t

Article history: In the past there has been no structured approach to learning from construction projects once they are
Received 13 July 2009 completed. Now, however, the construction industry is adapting concepts of tacit and explicit
Received in revised form knowledge management to improve the situation. Top managers generally assume that professionals in
9 December 2009
enterprises already possess tacit knowledge and experience for specific types of projects. Such
Accepted 4 January 2010
Available online 29 March 2010
knowledge is extremely important to organisations because, once a project is completed, professionals
tend to forget it and start something new. Therefore, knowledge multifold utilisation is a key factor in
Keywords: productively executing a construction project. This paper discusses the benefits of knowledge
Knowledge management management to construction industry organisations and projects and emphasises the significance of
Tacit and explicit knowledge
tacit knowledge. The main purpose of this paper is to present the integrated knowledge management
Construction projects management
model for the construction industry as well as system architecture and system of the Knowledge Based
Multiple criteria and multivariant analysis
COPRAS method Decision Support System for Construction Projects Management (KDSS-CPM) which the authors of this
paper have developed. Different knowledge management models that are presented in scientific
literature are discussed and compared, and the proposed new, KDSS-CPM model, as developed by this
paper’s authors, is introduced.
& 2010 Elsevier Ltd. All rights reserved.

1. Introduction there is no single strategy in place to handle the construction


management problems that arise. One of the most effective and
In recent decades, the scenario of construction projects has powerful tools for strengthening industrial and organisational
become more complicated, dynamic and interactive. Project competition is through systematic identification, as per the best
managers are constantly required to speed up reflective practice of knowledge utilisation and distribution (Bahra, 2001;
decision-makings on time. Knowledge, therefore, is noted to be Kamara et al., 2002).
one of the most important resources contributing to managerial Knowledge has been described as information which has been
decision-making and enhancing the competitive advantage of used and integrated with a person’s knowledge-based experience
organisations carrying out such projects (Carrillo, 2004; Nonaka and behavioural patterns (DeTienne, 2001). Individuals have
and Takeuchi, 1995). different knowledge-based capacities and experiences, and these
The construction industry is a workplace that is dominated by lead to different approaches for problem-solving and decision-
heuristics. Construction companies and their personnel prefer to making. Knowledge and experience are significant when choosing
carry out their project management tasks on the basis of their a construction project manager (Ogunlana et al., 2002). Therefore
past experiences rather than on a textbook approach or project managers must be capable of knowing how to use,
established analytical approaches (Maqsood, 2006). Indeed the manage and utilise such knowledge.
costs of attracting, recruiting and retaining talented employees A traditional practice in project management is to analyse
are expensive. This is further complicated by the fact that, in alternatives based on economic, legal/regulatory, technical,
coming years, the construction industry is expected to lose a large technological, organisational and managerial approaches. Social,
portion of its skilled and knowledgeable workforce. Conversely, cultural, ethical, psychological and educational aspects of project
management are less important. In order to make an integrated
analysis of a project management life cycle, such a cycle must
n
Corresponding author. Tel.: + 370 5 2745234; fax: + 370 5 2745235. be analysed in an integrated manner using the system of criteria
E-mail address: [email protected] (A. Kaklauskas). (see Fig. 1).

0952-1976/$ - see front matter & 2010 Elsevier Ltd. All rights reserved.
doi:10.1016/j.engappai.2010.01.030
L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215 1201

Economical Social

Institutional
Political Cultural

Legal/Regulatory Ethical
Construction
project
Technological Psychological
management
aspects
Technical Educational

Organisational Environmental

Emotional
Managerial Confidence

Fig. 1. Construction project management aspects.

Before specifying knowledge management (KM) models, first unified meaning of the concept. However, Egbu (2004) explains
the KM concept has to be defined. However, KM has been defined that knowledge is an important resource for construction
in different ways in scientific literature. According to Quintas et al. organisations due to its ability to provide market leverage and
(1997), KM means to manage all knowledge continuously to meet contributions to organisational innovations and project success.
various requirements in an organisation. Coleman (1999) defines The idea of knowledge as a competitive resource within project-
KM as an umbrella term referring to a wide variety of oriented industries is a concept shared by numerous authors such
interdependent and interlocking functions consisting of knowl- as Nonaka and Takeuchi (1995), Egbu (2004), Egbu et al. (2001),
edge creation, knowledge valuation and metrics, knowledge Oltra (2005) and others.
mapping and indexing, knowledge transport, storage and The potential benefits of effectively utilising their knowledge
distribution and knowledge sharing. Gurteen (1998) comprehen- has meant that an increasing number of construction companies
sively defined KM as an emerging set of organisational design and have identified the need to implement KM initiatives. However,
operational principles, processes, organisational structures, appli- the difficulties associated with understanding and managing
cations and technologies that helps knowledge employees organisational knowledge has meant that organisations experi-
dramatically leverage their creativity and ability to deliver ence numerous problems in successfully implementing and
business value. sustaining their initiatives (Egbu, 2004; Oltra, 2005). Egbu et al.
According to Robinson (2005), knowledge management relates (2001) state that, due to the project-oriented nature of construc-
to unlocking and leveraging different types of knowledge so that tion organisations, cultural considerations are important for
it becomes available as an organisational asset. Implementing KM successful KM. They continue by stating that short-term, task-
enables an organisation to learn from its corporate memory, share focused work can promote a culture which inhibits continuous
knowledge and identify competencies in order to become a learning.
forward thinking and learning organisation. It can be concluded that, though academics and industrial
Other authors mentioned additional KM benefits to project organisations have recognised the need for KM, there can be
management. Kamara et al. (2002) and Love et al. (2003) state confusion over specific definitions of knowledge and KM within
that the role of effective management of knowledge is evident in construction organisations. As a result there is the danger that KM
producing innovation, reducing project time and improving initiatives can become misguided and not serve their desired
quality and customer satisfaction. According to Siemieniuch and purpose. It is important for the entire organisation to understand
Sinclair (1999), through knowledge management, an organisa- what KM is and why it is important. The organisation should
tion’s intangible assets can be better exploited to create value, adopt a recognised and accepted generic definition, apply it to its
while both internal and external knowledge are being leveraged specific context and tailor it to accommodate specific business
to the benefit of the organisation. In projects knowledge manage- objectives. This will require support, agreement and communica-
ment can improve communications within teams and provide tions from the top. To ensure an alignment with its business
more informed knowledge by sharing best practice documents, objectives and strategies, an organisation should consider the
lessons learned, project management and system engineering type of work they carry out, their culture, dynamics and policies
methodologies, examples of review packages and rationales for and practices, as well as the added value that is required from the
strategic decisions. It is possible to distinguish KM benefits such KM initiative (Bishop et al., 2008).
as productive information use, activity improvement, intelligence Based on these assumptions, the authors of this paper are
enhancement, intellectual capital storage, strategic planning, aiming to develop a generalised and easily adaptive Integrated
flexibility acquisition, best practice gathering, success probability Knowledge Management model which is presented further.
enhancement and productive collaboration. The authors here Various scientific works describe knowledge management
used the systemised approach to KM definition (see Fig. 2). through structured models. Models introduced by various authors
The different definitions of KM in literature result from the and used in various activities have been analysed (see Table 1).
various perspectives and contexts that are specific to the authors Most of the presented models are usually activity oriented.
and their research fields. Within construction KM can be difficult Four major dimensions for the process of KM activities presented
to define precisely, as there is no general consensus on a single by Nonaka and Takeuchi (1995) and Davenport and Prusak (1998)
1202 L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

Knowledge Information Information


systematisation accumulation gathering

Knowledge
Knowledge Knowledge
Management
supply identification
systems

Knowledge Knowledge Knowledge


accessibility propagation storage

Fig. 2. Knowledge management system functions.

Table 1
Analysis of knowledge management models presented in scientific literature.

Author of the KM model Main elements of the KM model Area of activities

P. Gottschalk (1999), Norway The model illustrates interdependence of the main aspects: knowledge management, corporate Law
culture and IT use
P. H. J. Hendriks (2001), The model shows the significance of knowledge for an organisation and discusses the relations Construction, film studios, IT
Holland. between corporate culture and knowledge management projects and international
consulting services
S. Wang, G Ariguzo (2004), The model of the visual diagram of information repositories Suggested for academic
USA activities and for industry
A. Smith (2005), England The model illustrates the concept of knowledge management in the context of business Not specified
expansion
P. Jackson, J. Klobas (2008), Shows the process of knowledge creation and sharing Management of various
Australia projects
I.E. Diakoulakis, N. B. A holistic KM model proposing that ‘‘yeffective KM requires hybrid solutions of people and Not specified
Georgopoulos et al. (2004), technology’’
Greece
Wing S., Chan L.S. (2008), The model of factor analysis is for hypothesis proof that embraces three factors of social capital Not specified
China
Garcia M.A. (2005), Australia The model indicating how knowledge flow materialises into valuable products Construction projects
H. Li, S. Tang, E.D. Peter et al. The VHBuild model integrates project management, KM and AI technology Construction projects
(2002), China, Australia
A.S. Kazi (2005), Great Britain The activity-based KM (ABKM) model. Construction projects

are usually adopted for the general structure of KM models in framework was employed to test these relationships, and the
enterprises. These four dimensions are knowledge creation, empirical evidence supported the relationships. Findings from
knowledge diffusion, knowledge transfer and knowledge inven- this study confirmed that three selected factors (IT, incentive and
tory. In the proposed generic model, Korsvold and Ramstad (2004) individual competency) affected the overall knowledge creation
distinguish three necessary arenas for knowledge development process in Thai construction projects. From the research results, it
identified as ‘‘collective knowing’’, relational knowledge and can be assumed that KM in construction projects is impossible
knowing how. Consequently, the relationship between these without IT and human interaction.
three conditions or the knowledge content of the arenas for Tserng and Lin (2004) presented a more detailed framework of
knowledge creation in constituting a generic model for creating knowledge management used in construction projects. These
organisational innovation in the operative accomplishment of the authors distinguished three spheres of KM in construction
building process as a whole is intrinsically dynamic and inter- projects—content management, experience management and
dependent. This implies a continuous process of internalisation process management—and six management stages:
and externalisation between tacit (embedded knowledge: the
common frame of reference as a Web-based communicative and
 problem happening,
reflective device in the operative accomplishment of the building
 create knowledge,
process) and encultured knowledge (encultured: the common
 share knowledge,
frame of reference as shared collective understanding of the
 record knowledge,
building process as a whole).
 knowledge storage and
It should be noted, however, that not very many of the
 knowledge reused.
proposed models are adapted for the construction sector.
Research by Teerajetgul and Charoenngam (2006) addressed
the concerns of practicing knowledge management in construc- The significance of knowledge management in the construction
tion projects by examining the relationships between knowledge industry has been proved, as well as researched in academic
factors and the knowledge creation process composed of literature. Indeed different authors present diverse approaches
socialisation, externalisation, combination and internalisation. A to knowledge management, as well as different knowledge
L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215 1203

management models, theories (community of practice, social capital is the set of intangible assets that includes the internal
network analysis, intellectual capital, information theory, com- knowledge of employees have of information processes, external
plexity science and constructivism) and strategies the adjustment and internal experts, products, customers and competitors.
of which for the construction industry sometimes lacks an Intellectual capital includes internal proprietary reports, libraries,
integrated approach. patents, copyrights and licenses that record the company history
Construction organisations use various knowledge management and help it plan for tomorrow (Stuhlman, 2009). Bartholomew
strategies: experts databases; cross construction project learning; (2008) describes developing expertise, creativity and intellectual
active knowledge management (this knowledge management capital in the construction professions. He shows design practices
strategy is also referred to as the push strategy or codification and other construction professionals how to manage knowledge
approach); knowledge requests of experts (this knowledge successfully. Design is a knowledge-based activity, and project
management strategy is also referred to as the pull strategy or managers, contractors and clients, as well as architects and
personalization approach); knowledge mapping; rewards engineers, have always learned from experience and shared their
(to motivate experts to share their knowledge); communities of knowledge with immediate colleagues. Increasingly sophisticated
practice; best practice transfer; competence management (contin- construction technology and more demanding markets are
uous employee qualification improvement and assessment in making effective management of knowledge ever more important
organisations); expert-apprentice relationship; groupware technol- (Bartholomew, 2008).
ogies; knowledge databases and bookmarking engines; intellectual Information theory is based on the fact that we can represent
capital; knowledge brokers; social e-network; storytelling (transfer our experience by the use of symbols like the alphabet, pictures,
of tacit knowledge); after construction project reviews, etc. Some of etc. It is concerned with the problem of how to measure changes
these strategies (community of practice, social network and in information or knowledge content, that is, how to compile or
intellectual capital) are part of various knowledge management interpret a message (Skyttner, 1998). The main propositions of
models and theories. information theory are broadly applied in the development of
Above models and theories, as well as their application in knowledge management and intelligent systems for construction.
construction, are briefly analysed in next paragraphs. Real-world complex systems are almost always made up
Social network analysis is the mapping and measuring of links from a large number of interacting components. This leads to
and relationships between organisations and individuals engaged in complex behaviour that is difficult to understand, predict
Networking or collaborative activities. It may reveal: specific and manage. Research on complex systems is often undertaken by
expertise or influence; how people cooperate, and with whom; mathematicians, statisticians, engineers and information
who is overburdened with requests for assistance; and who fails to and computer scientists (Australian, 2009). Many large construction
collaborate at all. Since it provides both visual and mathematical projects are attributed to complex systems. Therefore, accumulation
analyses, it is a very powerful technique for evaluating mergers and of experience and knowledge, as well as its multiple reuse, in such
acquisitions, joint ventures, and inter-company relationships (Quan- large construction projects is of particular significance.
tum, 2009). Kurul (2007) analysed possibilities to evaluate knowl- Many knowledge management models and theories are, in one
edge creation capability and absorptive capacity in construction on way or another, based on various philosophical theories. The
the basis of the methodology of social network analysis. Kurul Constructivism Model is not an exception. Philosophy is dealing
(2007), in the project funded by EPSRC (EP/C530160/1), analysed the with knowledge since ancient times. The specified problems of the
concepts of absorptive capacity and social capital, while analytical traditional knowledge theory form the nucleus of classic epistemol-
techniques such as social network analysis were deployed to ogy. Epistemology is an area of philosophical study that focuses on
evaluate knowledge creation capacity of project teams in the our understanding of knowledge. Epistemology asks questions about
construction industry. what is true and false, and what constitutes valid ‘‘information’’. A
Community of Practice is a community or group with a key question of epistemology is whether information is absolute or
common interest. Community of Practice frequently uses the relative, reflecting a tension between the ‘‘scientific method’’ and
internet to facilitate their activities. This facilitation may include ‘‘social constructivism’’ (Epistemology, 2009). Cognitivism—one of
forums, libraries, chat rooms, calendars and such as working the younger branches of epistemology—deals with consistent
papers, links, and a contacts directory other goodies are shared patterns of scientific cognition. The idea of cognitivism (Macmillan,
here for all to use (Wason, 2009). Yu et al. (2009) present the 2009) is that learning is a conscious, rational process. People learn by
development of the knowledge value-adding model (KVAM) for making models, maps and frameworks in their mind.
quantitative performance measurement of the community of In cognitivism (Jean Piaget, 2009) knowledge is viewed as
practice of the knowledge management system in an A/E symbolic, mental constructions in the mind of individuals and as
consulting firm. The proposed KVAM combines several existing the outcome of learning. Learning is a process of recognition
KM theories including knowledge creation spiral, knowledge which occurs with associations through contiguity and repetition.
chain model and knowledge value added theory to form a Thus, learners perceive new relations among the parts of a
process-level model for measuring the performance of a generic problem, they acquire and reorganize information into under-
community of practice. Love (2009) uses the normative literature standable cognitive structures. Constructivist epistemology is an
to develop a proposal for using communities of practice in epistemological perspective in philosophy about the nature of
construction projects. An inter-organisational form of community scientific knowledge (Routledge, 2000). Constructivism is a
of practice, known as ‘‘champions of practice,’’ is propagated for philosophical perspective derived from the work of Immanuel
use in the construction industry. The ‘‘champions of practice’’ is Kant which views reality as existing mainly in the mind,
developed as an active know-how platform to provide advice constructed or interpreted in terms of one’s own perceptions.
pertaining to issues of ‘‘best practice’’ that have been accumulated Constructivism focuses on the process of how knowledge is built
from projects. The creation of such a form of community of rather than on its product or object (Constructivism, 2009).
practice can provide invaluable insights about best practice, Constructivism is a theory of knowledge which claims that
which can be formalised and shared in a meaningful and reflective knowledge is not passively received but actively constructed by
way (Love, 2009). the learner, and that the function of cognition is adaptive, serving
Intellectual Capital is the same as the knowledge asset of an to organise experience, rather than discover reality (Glosary,
organisation. Knowledge assets help achieve business goals. This 2009). Constructivism is a philosophy of learning used by the
1204 L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

leading construction organisations to master the best construc- a building’s life cycle. Section 3 provides a practical realisation of
tion practice. this model. Section 4 describes the testing of the developed
This paper covers a wide range of issues from basic definitions systems and model. Finally some concluding remarks appear in
and fundamental concepts to the role of information technology Section 5.
and different knowledge management models presented in
literature.
Noticeably above researchers from various countries engaged 2. Development of the integrated knowledge management
in analysing knowledge management for construction projects model for construction projects
but did not consider the object of research as analysed by the
authors of this investigation. The object of this research may be The analysis of works and published articles by various
described as follows: construction project stakeholders involved scientists shows the tendency to select a single, narrow KM area
in its design and realisation as well as its micro-, meso- and (e.g., personnel management, management of a single project
macro-environments which have a particular impact on it and in phase and such). Only a few scientists attempted an integrated
making an integral whole. A complex analysis of the research analysis of KM in construction. Thus there is a need to have an
object that was formulated and compiled with the help of integrated analysis of KM in the construction sector that takes
multiple criteria project analysis methods was especially devel- into account the entire life cycle and not only emphases explicit
oped by these authors for this purpose. but also tacit knowledge as well as considers all stakeholder
The main purpose of this research is to develop an integrated groups and the satisfaction of their needs.
knowledge management model for construction projects by The integrated KM model developed by the authors of this
presenting the systematic approach to tacit and explicit knowl- article is shown in Fig. 3.
edge management according to construction life cycle and micro-, The effectiveness of the IKM model which is under develop-
meso- and macro-environmental factors as a whole and using it ment depends on the combined effect of macro-level variable
for the Knowledge Based Decision Support System architecture. factors such as the level of economic, political and cultural
The structure of this paper is as follows. Section 2, following development of a country; governmental policies (regional
this introduction, explains the model for an integrated analysis of support programmes, control of competition, preferential loans,

Project
Information &
- Life Cycle Knowledge
- Design
- Construction
Preparation Interested Groups
- Construction Work - Customers
- Building Use - Designers
- Building - Contractors
Maintenance & Knowledge - Economists
Preservation Acquisition - Suppliers
- Building and Farm - Producers
Management - Authorities
- Destruction
- Utilisation

Explicit Knowledge Tacit knowledge

- Specifications Best Practice - Competence


- Contacts Knowledge - Individual Experience
- Reports Data Base - Historical Memory
- Drawings - Tolerance
- General Documents - Process Changes
- Articles Knowledge - Problems Related to
- Contracts Based Decision - Problem Solutions
- Manuals Support - Expert Tips
- Licences - Innovations
- Video Audio Software - Know-how
Multivariant
Design

Fig. 3. Integrated Knowledge Management Model for Construction Projects.


L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215 1205

tax exemptions, projects commissioned by the government); legal the surroundings and regulatory documents). Meso-economics
and normative documents; the tax system; the loan granting emphasises the influence of the institutional environment which
procedure; interest rates; insurance systems; the social policy; is reflected by various institutional participants (starting with
inflation; the market; unemployment level; workforce skills; international institutions and ending with trade unions and
salary scales; labour laws; environment protection; customs and tenant associations).
traditions; availability of local resources and others. Different microenvironment factors must be assessed during
The national economic environment has a direct influence on the development of the IKM model. These factors depend on
construction. It depends on the policies by national authorities on meso- and macro-level factors (various laws and normative
taxes and money, capital movement, the investment environ- documents regulate construction projects and so forth).
ment, loan granting and interest rates. Demand, supply, competi- The following main micro-level factors influence the effective-
tion, pricing and other economic factors determine the economic ness of the IKM model:
environment as well. The main economic indicators which define
economic development are the cyclical nature of development,
inflation and unemployment. These affect changes in other  prices of parcels and buildings,
indicators (GDP variation, consumer income, amount of savings,  local infrastructure,
prices of goods, possibilities to get loans).  information systems,
The social and cultural environment includes institutions and  Nanotechnology,
other factors which help to shape and perceive the main social  integrated design of a building’s life cycle,
values, views and behavioural standards. A human personality  improvement of the construction materials and products
matures in a certain society which determines his/her main supply process by use of internet technology,
values and beliefs.  life-long learning,
The political and legal environment has a direct influence on  funding of construction of intelligent housing,
the construction market. The political and legal environment  construction agreements,
consists of the political system, legal acts and ownership rights.  the process of goal-setting,
The political and legal environment is affected by national and  the process of designing,
public agencies and organisations, as well as by other stakeholder  the process of creating an intelligent, favourable residential
groups. Business is especially sensitive to the degree of bureau- environment,
cracy in the system. The complex process related to issuing  the process of use and
building permits may be taken as an example.  facilities management and others.
The technological environment relates to new technology
opening paths for new markets and new opportunities. The
technological environment changes rapidly. Companies which fail Numerous stakeholder groups take part in a building’s life cycle,
to foresee a technological change in advance and keep up with it are influence its effectiveness and try to achieve their goals (clients
forced out of the market. Life cycles of technologies are shrinking. and users, designers, contractors and subcontractors, suppliers,
The natural environment and energy saving involve a certain the state and its authorised institutions, municipalities, banks,
natural environment in which the construction and real estate organisations offering commissioning and maintenance services
sector functions thereby affecting it and being affected by it. The for buildings and the like). Their goals involve the following: a
natural environment supplies this sector with raw materials and desirable building price along with desirable operating fees, area
resources. The Lithuanian industry of construction materials and and height, requirements for a building’s architecture, aesthetic
products consumes most of the electricity and other types of properties, level of comfort, functional convenience, proportional
energy (except for the energy industry). layout of premises and sound insulation qualities of its enclosure
Low-energy technology use in construction not only will structures, taxes and their exemptions, interest rates and the like.
reduce emissions of pollutants which cause the greenhouse effect It is also important whether the residential environment is
but also the overall building life cycle costs. Transportation and ecologically clean and noiseless and whether the local infra-
management of debris demands additional expenses on the part structure is good.
of construction organisations and the state. The given view to KM in construction projects is generalised by
Meso-economic analysis is the systematic analysis of the distinguishing four of the most important knowledge management
construction and real estate sector in which both private and state stages—project information and knowledge gathering, knowledge
organisations operate. acquisition, best practice knowledge data base creation and knowl-
Three types of companies (service companies, construction edge based decision support for implementing other projects.
organisations and manufacturers of construction materials and Project information and knowledge gathering as well as the
products) and three types of economic activities (1. management of knowledge acquisition stages are strongly interconnected with all
real estate, facilities and transactions; 2. project management and construction project life cycle activities including conceptual
construction of buildings/structures and 3. manufacturing and planning, design, procurement, construction, operations and
supply of construction materials and products) are part of the maintenance. It should be noticed that information and knowl-
construction and real estate sector. Service companies embrace all edge must be gathered from all the different bodies and
three types of economic activities, whereas construction companies organisations participating in the project, e.g., clients, designers,
as well as manufacturers of construction materials and products are consultants, contractors and inspectors, because the inter- and
involved in only one respective type of activity. Based on the usually intra-discipline communications between these distinct profes-
assumed, traditional perspective, only construction organisations sionals are often problematic. The lack of integration and
operate in the construction sector; the perspective of the construc- co-ordination between the industry’s distinct professions can be
tion and real estate sector embraces activities by service companies, perceived as a major contributory factor to poor project
construction organisations and manufacturers of construction performance (Faniran et al., 2001).
materials and products. An effective knowledge strategy is required to acquire and
Whereas the construction and real estate sector is described as manage both explicit and tacit knowledge (Pathirage et al., 2007;
an open system, it is influenced by the external environment (i.e., Kazi, 2005).
1206 L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

Tacit knowledge is personal knowledge about a specific 219.145.33/loreta was developed based on the analysis of existing
context. Such knowledge is hard to formulate, record or express information, expert, intelligent, knowledge management and
clearly since it is stored in human brains. Tacit knowledge is decision support systems and existing decision making methods
mostly based on trial and error relevant to real life situations. (Adeli, 1988; Ginevicius et al., 2008; Hajdasz, 2008a, 2008b)
Such knowledge is personal; it is part of individual experience and (Fig. 4).
is shared and exchanged through direct, eye-to-eye contact KDSS-CPM consists of a database, database management
(Tiwana, 2000). Such knowledge can be transferred directly and system, model-base, model-base management system and a user
efficiently. On the other hand, explicit knowledge is learned and interface.
acquired indirectly. The knowledge must be decoded into the The KDSS-CPM database management system allows users to
individual mental models of each person and then named as analyse the scenarios of construction processes by taking into
explicit knowledge. Such knowledge can be encoded and account the system of criteria.
transferred through a medium of systematic or formal language. The analysis of database structures according to the type of
Precise awareness is formal knowledge which can be sorted like problem solved reveals their various utilities. There are three
information. Such knowledge may be found in organisational basic types of database structures: hierarchical, network and
documents, including reports, articles, agreements, manuals, relational. The KDSS-CPM system has a relational database
patents, drawings, video and audio materials, software and such. structure when information is stored in the form of tables. These
It may also be found in organisational documents such as a tables contain quantitative and conceptual information. Each
company’s diagrams, charts, tables, process plans, the wording of table is given a name and is saved in the computer’s external
a mission and its experience and the like. memory as a separate file. Logically linked parts of a table
The collection and management of explicit knowledge is easier comprise a relational model. The following tables form the KDSS-
during the construction phase of a project, because information CPM database:
and knowledge is accessible in documents. Document manage-
ment can include storage and management of information and  initial data tables,
knowledge without retrieval of explicit knowledge. Thus it is  tables assessing construction project solutions and
easier to manage explicit knowledge than tacit knowledge.  tables of a multivariant design.
However, the main problem behind tacit knowledge is related
to its effective translation into structured information and
A module base allows the KDSS-CPM’s user to select the most
unstructured information. After the tacit knowledge is trans-
suitable construction alternatives by comparing the measures
formed, both the structured and unstructured information can be
that promote the greatest value to all interested bodies and
supervised and managed by using document management tools
organisations.
(Kazi, 2005).
Since the efficiency of a construction project variant is often
Tserng and Lin (2004) distinguished the main problems indicated
determined by taking into account organisational, management,
in construction phases by acquiring and using tacit and explicit
technological, economic, technical, legal, social and other factors,
knowledge. According to those authors, problems regarding tacit
a model-base of a KDSS-CPM should include models enabling a
knowledge involve losses of experience, know-how, problem—solu-
decision maker to perform a comprehensive analysis of the
tion and innovation. Problems connected with explicit information
variants available and make a proper choice. The following
are mainly connected with information saving issues; information
models of model-base are aimed to perform this function:
can be recorded incompletely or only in part.
The above mentioned problems can be solved by use of
information technology and tacit data coding as well as other  a model for developing the alternative variants of a construc-
technology based measures like videos, interviews and others. tion project,
When the knowledge is collected, the next step is the best practice  a model for determining the initial weights of the criteria (with
data base creation avoiding insignificant or less worthy information. It the use of expert methods),
should be noticed that construction projects are usually not universal.  a model for criteria weight establishment,
Therefore the standardisation of all project life cycle phases is needed.  a model for the multivariant design of a construction project,
Furthermore the database must be periodically updated for new  a model for multiple criteria analysis and setting priorities,
information and knowledge acquisition.  a model for determining project utility degree and
When the best practice database is created, the second step is  a model for providing recommendations.
knowledge application and reuse in order to make knowledge
based decisions in construction projects. As example, two models (a model for multiple criteria analysis
The IKM model, proposed by the authors of this paper, integrates and setting priorities and a model for determining project utility
economic, political, legal/regulatory, technological, technical, orga- degree) are described further. A model for multiple criteria
nisational, managerial, institutional, social, cultural, ethical, psycho- analysis and setting priorities performs the multiple criteria
logical, educational, environmental, emotional and confidence- analysis of construction project alternatives and sets project
building needs of stakeholders and both the explicit and tacit priorities based on the weighted criteria and tacit and explicit
knowledge. It covers micro-, meso- and macro- environment knowledge. The model for determining the project utility degree
conditions as well as a building life cycle analysis. This model can sets the utility degree for each analysed project. The Complex
be used for the multivariant design and for the multiple criteria Proportional Assessment method (COPRAS) (Zavadskas and
analysis of construction projects. Kaklauskas, 1999; Kaklauskas, 1999) is used for these purposes.
The results of the comparative analysis of projects are
presented as a grouped decision-making matrix where the
3. Knowledge based decision support system for construction columns contain n alternative projects, while all the pertinent
projects management (KDSS-CPM) quantitative and conceptual information is found in Table 2. Any
alternative that has a poorer criterion value than that required
The Knowledge Based Decision Support System for Construc- is rejected. In order to perform a complete study of a project,
tion Projects Management (KDSS-CPM) in web page: http://193. a complex evaluation is needed of its economic, qualitative,
L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215 1207

Fig. 4. Components of the KDSS-CPM system.

Table 2 multivariant design is needed to make a more complete and


Sorted decision-making matrix for a multiple criteria analysis of construction accurate evaluation. Quantitative information is based on criteria
project management.
systems and subsystems, units of measure, values and initial
Analysed criteria a
Weights Units Analysed projects weights of the project alternatives. Conceptual information is a
more flexible and less accurate means for expressing estimates
1 2 y j y n than numbers are.
This method assumes direct and proportional dependence of
Quantitative project information
Quantitative criteria z1 q1 m1 x11 x12 y x1j y x1n
significance and priority by versions investigated on a system of
z2 q2 m2 x21 x22 y x2j y x2n criteria adequately describing the alternatives and on the values
y y y y y y y y y and weights of the criteria. A system of criteria is determined, and
zi qi mi xi1 xi2 y xij y xin experts calculate the values and initial weights of criteria. All this
y y y y y y y y y
information can be adjusted by interested parties (customers,
zt qt mt xt1 xt2 y xtj y xtn
zt + 1 qt + 1 mt + 1 xt + 11 xt + 12 y xt + 1j y xt + 1n users, etc.) considering their goal pursuits and existing capabil-
ities. Hence the results of the assessment of alternatives fully
Qualitative criteria zt + 2 qt + 2 mt + 2 xt + 21 xt + 22 y xt + 2j y xt + 2n reflect the initial construction project data that was jointly
y y y y y y y y y submitted by experts and interested parties.
zi qi mi xi1 xi2 y xij y xin
y y y y y y y y y
The determination of the significance and priority of alter-
zm qm mm xm1 xm2 y xmj y xmn natives is carried out in 5 stages.
Stage 1: The weighted, normalised decision-making matrix D is
Conceptual project information (texts, drawings, charts, video tapes) formed. The purpose of this stage is to receive dimensionless
Kk Kz Kq Km K1 K2 y Kj y Kn
weighted values from the comparative indexes. When the
a dimensionless values of the indexes are known, all criteria,
Sign zi (7) shows, respectively, the better/poorer value of the criterion of
requirements for better client satisfaction. originally having different dimensions, can be compared. The
following formula is used for this purpose:
xij qi
technical, technological, ecological, climatic and social conditions, dij ¼ Pn , i ¼ 1,m; j ¼ 1,n: ð1Þ
j¼1 xij
traditions and requirements for better customer satisfaction.
Quantitative and conceptual descriptions provide this where xij is the value of the ith criterion in the jth alternative of a
information. The diversity of aspects being assessed should solution, m the number of criteria; n the number of the
include a variety of data presented as needed for decision- alternatives compared and qi the weight of the ith criterion.
making. Therefore the necessary conceptual information may be The sum of the dimensionless weighted index value dij for each
presented in numerical, textual, graphical (schemes, graphs, criterion xi is always equal to the weight qi of this criterion:
diagrams and drawings) or equation formats and as audio or Xn
qi ¼ d , i ¼ 1,m; j ¼ 1,n:
j ¼ 1 ij
ð2Þ
videotapes. An analysis should include all—the criteria used for
conceptual descriptions, their definitions and the reasons for the In other words, the value of weight qi of the investigated
choice of a criteria system and their values and weights. criterion is proportionally distributed among all alternative
Conceptual information about the possible ways of performing a versions aj according to their values xij.
1208 L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

Stage 2: The sums of weighted, normalised indexes describing this means their utility degree is also the same. With an increase
the jth version are calculated. The versions are described by (decrease) in the significance of the project analysed, the project’s
minimising indexes S  j and maximising indexes S + j. The lower degree of utility also increases (decreases). The degree of project
value of minimised indexes is better and the greater value of utility is determined by comparing the project analysed with the
maximised indexes is better. The sums are calculated according to most efficient project. In this case, all the utility degree values
the formula: related to the project analysed will range from 0% to 100%. This
Xm Xm will facilitate a visual assessment of the project’s efficiency.
Sþj ¼ d , Sj ¼
i ¼ 1 þ ij
d , i ¼ 1,m, j ¼ 1,n:
i ¼ 1 ij
ð3Þ
The formula used for calculating alternative aj utility degree Nj
In this case, the values S + j (the greater this value [project is the following:
‘‘pluses’’], the more satisfied are the interested parties) and S  j Nj ¼ ðQj : Qmax Þ100% ð6Þ
(the lower this value [project ‘‘minuses’’], the better the goal
attainment by the interested parties) express the degree of goals
attained by the interested parties in each alternative project. In
4. Case study
any case, the sums of ‘‘pluses’’ S + j and ‘‘minuses’’ S  j of all
alternatives are always, respectively, equal to all sums of the
A client who wants to construct a detached house deals with
weights of maximised and minimised criteria:
P Pm Pn the following main tasks: he/she selects the best parcel for his/her
Sþ ¼ m j ¼ 1 Sþj ¼ i¼1 j ¼ 1 d þ ij , needs, a suitable design of a detached house and the contractor to
P P Pn ð4Þ be involved in the construction. All these procedures are based
S ¼ nj¼ 1 Sj ¼ m i¼1 j ¼ 1 dij : i ¼ 1,m; j ¼ 1,n:
both on explicit and tacit knowledge.
Stage 3: The significance (efficiency) of the compared versions Selection of a parcel using the Knowledge Based Decision Support
is determined by describing the characteristics of positive System for Construction Projects Management (KDSS-CPM) is
alternatives (‘‘pluses’’) and negative alternatives (‘‘minuses’’). analysed as an example. The client can select a parcel from the
The relative significance Qj of each alternative aj is found alternative variants available in the KDSS-CPM database (here 8
according to the formula: alternatives are taken). The database provides a textual description
P along with visual data of the alternative parcels (see Fig. 5).
Smin nj¼ 1 Sj
Qj ¼ S þ j þ P , j ¼ 1,n: ð5Þ A quantitative assessment of the parcels (see Fig. 5) is shown
Sj nj¼ 1 Sj
in Fig. 6. These parcels are analysed using a set of 13 quantitative
Stage 4: The priorities of the alternatives are determined. The and qualitative criteria: price, engineering systems, roads,
greater is the Qj the higher is the efficiency (priority) of the transportation system, size and such. Each criterion is assigned
construction project alternative. a measurement unit which is either minimising or maximising a
The analysis of the method presented makes it possible to state weight and values which describe specific analysed projects. Each
that it may be easily applied to evaluating projects and selecting analysed alternative has both positive and negative features. As
the most efficient of them while being fully aware of the physical an example, the most expensive parcel (priced at 650,000 LTL,
meaning of the process. Moreover it allows formulating a reduced located in Visoriai, Vilnius) is compared with a parcel of average
criterion Qj which is directly proportional to the relative effect of price (250,000 LTL, located in Pavilnys, Vilnius). The most
the compared criteria values xij and weights qi on the end result. expensive parcel has the following advantages: close to the city,
Significance Qj of project aj indicates the degree of satisfaction outside parcel, good access, near a forest, available geodetic
of demands and goals pursued by the interested parties—the measurements and electricity, public transport to Vilnius city,
greater is the Qj the higher is the efficiency of the project (see large green area in the neighbourhood and a paved road leading
Table 3). directly to the parcel. However, it has disadvantages as well:
Stage 5: The degree of project utility directly associates with its location within the city where the pollution level is greater than it
relevant quantitative and conceptual information. If one project is is in more remote areas, an outdated public transport system and
characterised as the best comfort, aesthetics and price indexes, a nearby road with heavy traffic. An ecologically clean residential
while another is shown with better maintenance and facilities environment is one of the most important factors when selecting
management characteristics, both will have obtained the same a place to live. Furthermore the underdeveloped infrastructure of
significance values as a result of the multiple criteria evaluation; the area also negatively impacts the attractiveness of this variant.

Table 3
Results of the multiple criteria analysis of construction project management.

a
Analysed criteria Weights Units Analysed projects

1 2 y j y n

Quantitative project information


X1 z1 q1 m1 d11 d12 y d1j y d1n
X2 z2 q2 m2 d21 d22 y d2j y d2n
X3 z3 q3 m3 d31 d32 y d3j y d3n
y y y y y y y y y y
Xi zi qi mi di1 di2 y dij y din
y y y y y y y y y y
Xm zm qm mm dm1 dm2 y dmj y dmn
Sum of maximising normalised rated indicators (project advantages) S+1 S+2 y S+j y S+n
Sum of minimising normalised rated indicators (project disadvantages) S1 S2 y Sj y Sn
Significance of the project alternative Q1 Q2 y Qj y Qn
Priority of the project alternative P1 P2 y Pj y Pn
Project’s utility degree N1 N2 y Nj y Nn

a
Sign zi (7 ) shows, respectively, the better/poorer value of the criterion of requirements for better client satisfaction.
L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215 1209

Fig. 5. Visual data of parcels.

Solutions considered
Please select solution under consideration
Parcels

Qualitative and quantitative description of the alternatives


Quantitative and qualitative information pertinent to alternatives
Criteria Compared alternatives
describing the Measuring
alternatives * units Weight 1 Variant 2 Variant 3 Variant 4 Variant 5 Variant 6 Variant 7 Variant 8 Variant
Price - Lt 0.8 190000 312500 160000 329000 220000 390000 250000 649999
Parcel size + a 0.6 10 12.5 10 7.5 12.5 20 15 9
Legal base + Points 0.5 8 9 6 9 9 7 7 10
Water supply + Points 0.5 8 9 8 6 6 6 9 8
Neiborhood + Points 0.9 8 9 7 9 8 7 7 8
Location, shape + Points 0.7 8 9 8 7 9 8 8 8
Living
environment + Points 0.8 9 9 7 8 9 7 8 8
District area
prestige - Points 0.9 8 9 8 10 8 8 10 9
District area
environment + Points 0.7 7 7 8 8 6 6 7 9
Recreations
zones + Points 0.7 7 7 8 8 7 8 9 8
Area
appurtenances + Points 0.7 7 7 8 8 7 8 9 8
Ecological
environment + Points 1 9 9 9 10 9 9 10 9
Area relief + Points 0.8 8 8 7 7 8 8 8 9
Parcel size
referred to needs + Points 0.7 8 8 8 6 8 10 8 7

Fig. 6. Initial data of the multiple criteria analysis of land parcels.

The parcel of average price is at a greater distance from the dust and noise caused by traffic makes this parcel less attractive
main urban areas; it is located at the outskirts of the Džiaugsmo for residential construction.
residential area on a main street. The parcel is on an elevation Upon completion of the quantitative assessment of the
with a stunning view of Pavilnys Valley. It is a rather large parcel alternatives, the elements of construction project management
and, according to the detailed plan, it is located at a distance of are analysed using the multiple criteria analysis. This particular
15 m from the main street of the area. The parcel is close to example deals with the assessment of multiple criteria of the
Pavilniai Reserve (100 m away). Gas and electricity are available; alternative parcels. Calculations reveal the best variant with a
geodetic measurements were performed. However, this parcel utility degree of 100%, i.e., Variant 7. Variant 2 at 98.47% takes
also has disadvantages. Although the parcel is within the territory second place in the utility degree line and the rest follow. This
of Vilnius, it is part of an area of gardening plots. It does not have way the priorities of alternative parcels are determined. The worst
urban engineering networks, and this fact has a negative impact variant will have the lowest utility degree; it is Variant 4 at
on the parcel’s market value. The uneven surface of the parcel 91.71%, in this particular case (see Fig. 7).
impedes construction work. A typically designed house would The system’s multiple criteria model for measuring the utility
hardly fit there; thus the design will cost more than usual. It will degree and market value shows what price of an evaluated alternative
be difficult to continue construction during off-seasons (autumn, would make it equally competitive in the market after a complex
winter). The parcel is close to the main street of the area; thus assessment of all the advantages and disadvantages of the analysed
1210 L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

Results of multiple criteria evaluation of the alternatives


Please select solution under consideration
Parcels

Quantitative and qualitative information pertinent to alternatives


Criteria
describing
the Measuring Compared alternatives
alternatives * units Weight 1 Variant 2 Variant 3 Variant 4 Variant 5 Variant 6 Variant 7 Variant 8 Variant
0.0608 0.0999 0.0512 0.1052 0.0704 0.1247 0.08 0.2079
Price - Lt 0.8 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
0.0622 0.0777 0.0622 0.0466 0.0777 0.1244 0.0933 0.056
Parcel size + a 0.6 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
0.0615 0.0692 0.0462 0.0692 0.0692 0.0538 0.0538 0.0769
Legal base + Points 0.5 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
0.0667 0.075 0.0667 0.05 0.05 0.05 0.075 0.0667
Water supply + Points 0.5 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
0.1143 0.1286 0.1 0.1286 0.1143 0.1 0.1 0.1143
Neiborhood + Points 0.9 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
Location, 0.0862 0.0969 0.0862 0.0754 0.0969 0.0862 0.0862 0.0862
shape + Points 0.7 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
Living 0.1108 0.1108 0.0862 0.0985 0.1108 0.0862 0.0985 0.0985
environment + Points 0.8 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN

District area 0.1029 0.1157 0.1029 0.1286 0.1029 0.1029 0.1286 0.1157
prestige - Points 0.9 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
District area 0.0845 0.0845 0.0966 0.0966 0.0724 0.0724 0.0845 0.1086
environment + Points 0.7 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
Recreations 0.079 0.079 0.0903 0.0903 0.079 0.0903 0.1016 0.0903
zones + Points 0.7 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN

Area 0.079 0.079 0.0903 0.0903 0.079 0.0903 0.1016 0.0903


appurtenances + Points 0.7 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
Ecological
environment + Points 1 0.1216 0.1216 0.1216 0.1351 0.1216 0.1216 0.1351 0.1216
0.1016 0.1016 0.0889 0.0889 0.1016 0.1016 0.1016 0.1143
Area relief + Points 0.8 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
Parcel size
referred to 0.0889 0.0889 0.0889 0.0667 0.0889 0.1111 0.0889 0.0778
needs + Points 0.7 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
0.0429 0.049 0.0306 0.0429 0.0245 0.0367 0.049 0.0245
Gas + Points 0.3 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
0.091 0.104 0.117 0.065 0.091 0.104 0.024 0.104
Sawerage + Points 0.7 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
Road,
transport 0.0556 0.0635 0.0556 0.0714 0.0635 0.0635 0.0714 0.0556
system + Points 0.5 AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN AVG MIN
The sums of weighted normalized
maximizing (projects 'pluses') indices of
the alternative 1.2458 1.3293 1.2273 1.2155 1.2404 1.2921 1.2645 1.2856
The sums of weighted normalized
minimizing (projects 'minuses') indices of
the alternative 0.1637 0.2156 0.1541 0.2338 0.1733 0.2276 0.2086 0.3236
Significance of the alternative 1.448 1.4651 1.4599 1.3814 1.4552 1.4606 1.5072 1.4184
Priority of the alternative 6 2 4 8 5 3 1 7
Utility degree of the alternative (%) 96.07% 98.47% 96.91% 91.71% 96.86% 97.21% 100% 94.11%
*- The sign "*" indicates that a greater (less) criterion value corresponds to a greater significance for a user (stakeholders)

Fig. 7. Fragment of the multiple criteria analysis of land parcels.

alternatives. For instance, at current market prices, if Variant 8 would After this, the received compatible and rational components of
cost 265,252 LTL instead of 649,999 LTL, it would become competitive a construction project are joined into the systemised projects.
in the market when compared to the most attractive variant: its Having performed a multiple criteria analysis of the projects in
utility degree would comprise 99.12% instead of 94.17%, and it would this way, the most efficient construction projects can be selected.
take second instead of seventh place in the priority queue (see Fig. 8). For example, multivariant designing helped to determine that the
In the same manner, the multiple criteria analysis is applied to client should select Parcel 7, House Design 5 and UAB Vilsta
other components for construction project management. By using Company as the contractor (see Fig. 10).
the collected information as basis, it is possible to perform a The proposed KDSS-CPM system can provide advantages such
multiple criteria analysis of the construction project’s compo- as the ability to:
nents (parcel selection, house project selection, contractors’
selection, etc.) and select the most efficient versions.
The presented system, which is based on both explicit and  save, use and transfer the best experience regarding construc-
tacit knowledge, can generate up to 100,000 alternative tion projects,
versions of construction projects, perform their multiple  derive efficient and environmentally friendly construction
criteria analyses, determine the utility degree and market value solutions,
and select the most beneficial alternative without human  flexibly adapt to a changing construction environment,
interference (Fig. 9).  reduce construction costs and
L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215 1211

It is determined whether the corrected value being valuated had been


Approximation cycle The corrected value calculated accurately enough
0 649999 51.89%
1 312687.375 13.48%
2 270523.4219 1.95%
3 265252.9277 0.25%

Significan
Criterions\Objects * ce 1 Variant 2 Variant 3 Variant 4 Variant 5 Variant 6 Variant 7 Variant 8 Variant
Price 0.8 - 0.0608 0.0999 0.0512 0.1052 0.0704 0.1247 0.08 0.2079
Parcel size 0.6 + 0.0622 0.0777 0.0622 0.0466 0.0777 0.1244 0.0933 0.056
Legal base 0.5 + 0.0615 0.0692 0.0462 0.0692 0.0692 0.0538 0.0538 0.0769
Water supply 0.5 + 0 .0 6 6 7 0.075 0.0667 0.05 0.05 0.05 0.075 0.0667
Neiborhood 0.9 + 0.1143 0.1286 0.1 0.1286 0.1143 0.1 0.1 0.1143
Location, shape 0.7 + 0.0862 0.0969 0.0862 0.0754 0.0969 0.0862 0.0862 0.0862
Living environment 0.8 + 0.1108 0.1108 0.0862 0.0985 0.1108 0.0862 0.0985 0.0985
District area prestige 0.9 - 0.1029 0.1157 0.1029 0.1286 0.1029 0.1029 0.1286 0.1157

Fig. 8. Fragment of a market value analysis of land parcels.

Computer-aided development of the feasible alternatives


Quantitative and qualitative information pertinent to alternatives
Compared alternatives

1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 7 Variant

1 Variant 1 Variant 1 Variant 2 Variant 2 Variant 2 Variant 3 Variant 3 Variant 3 Variant 5 Variant
UAB UAB UAB UAB UAB UAB UAB UAB UAB UAB
„VILSTA“ „VILSTA“ „VILSTA“ „ERDANA“ „ERDANA“ „ERDANA“ „Kaminta“ „Kaminta“ „Kaminta“ „VILSTA“
Criteria
UAB „AKS UAB UAB UAB „AKS UAB UAB UAB „AKS UAB UAB UAB
describing the Measuring
projektai“ „VEIKME“ „ALVORA“ projektai“ „VEIKME“ „ALVORA“ projektai“ „VEIKME“ „ALVORA“ „ALVORA“
alternatives * units Weight
Price - Lt 0.8 190000 190000 190000 190000 190000 190000 190000 190000 190000 190000
Parcel size + a 0.6 10 10 10 10 10 10 10 10 10 10
Legal base + Points 0.5 8 8 8 8 8 8 8 8 8 8
Water supply + Points 0.5 8 8 8 8 8 8 8 8 8 8
Neiborhood + Points 0.9 8 8 8 8 8 8 8 8 8 8
Location, shape + Points 0.7 8 8 8 8 8 8 8 8 8 8
Living
environment + Points 0.8 9 9 9 9 9 9 9 9 9 9
District area
prestige - Points 0.9 8 8 8 8 8 8 8 8 8 8

Fig. 9. Fragment of the computer-aided development of construction project alternatives.

 encourage construction throughout the entire building life Many parcels offered for sale are located in areas of gardening
cycle. plots. The fact that today gardening areas are becoming
residential areas of cities is an urgent issue in Lithuania. These
garden plot areas are not yet considered residential; thus persons
The following processes are automated: multi-criteria analysis who choose their garden plots for permanent residence have
of variant combinations, determination of utility degree and numerous infrastructure-related problems: water supply, sewage
priorities and selection of the most efficient variants. Moreover management, roads, electricity supply and other necessities of
the strengths and weaknesses of the analysed variants are daily life.
presented; i.e., it is possible to see why and to what extent one As an example, an analysis follows regarding the attractiveness
alternative is better than is another. to the client of Variant 7, which is located in a gardening area (see
The system helps to formulate recommendations. Fig. 9 Figs. 11 and 12, Variant 7).
explains in detail how the value is affected quantitatively by Calculations have shown that price is the most significant
parcel valuation criteria expressed through explicit and tacit criterion making this parcel more attractive. From a client’s
knowledge. The matrix informs how to make parcels more perspective, a lower market price makes an alternative more
attractive to stakeholders interested in a construction project. attractive (the price criterion must be minimised). However, the
1212 L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

Multiple criteria analysis of the developed feasible alternatives


Quantitative and qualitative information pertinent to alternatives
Compared alternatives
1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 1 Variant 7 Variant
1 Variant 1 Variant 1 Variant 2 Variant 2 Variant 2 Variant 3 Variant 3 Variant 3 Variant 5 Variant
UAB
UAB UAB UAB UAB UAB UAB UAB UAB UAB
„ERDANA
„VILSTA“ „VILSTA“ „VILSTA“ „ERDANA „ERDANA „Kaminta“ „Kaminta“ „Kaminta“ „VILSTA“
Criteria “ UAB
UAB „AKS UAB UAB “ UAB “ UAB UAB „AKS UAB UAB UAB
describing the Measuring „AKS
projektai“ „VEIKME“ „ALVORA“ „VEIKME“ „ALVORA“ projektai“ „VEIKME“ „ALVORA“ „ALVORA“
alternatives * units Weight projektai“
Price - Lt 0.8 0.001125 0.001125 0.001125 0.001125 0.001125 0.001125 0.001125 0.001125 0.001125 0.001125
Parcel size + a 0.6 0.001151 0.001151 0.001151 0.001151 0.001151 0.001151 0.001151 0.001151 0.001151 0.001151
Legal base + Points 0.5 0.00114 0.00114 0.00114 0.00114 0.00114 0.00114 0.00114 0.00114 0.00114 0.00114
Water suplly + Points 0.5 0.001235 0.001235 0.001235 0.001235 0.001235 0.001235 0.001235 0.001235 0.001235 0.001235
Neiborhood + Points 0.9 0.002116 0.002116 0.002116 0.002116 0.002116 0.002116 0.002116 0.002116 0.002116 0.002116

Location, shape + Points 0.7 0.001595 0.001595 0.001595 0.001595 0.001595 0.001595 0.001595 0.001595 0.001595 0.001595
Living
environment + Points 0.8 0.002051 0.002051 0.002051 0.002051 0.002051 0.002051 0.002051 0.002051 0.002051 0.002051
district area
prestige - Points 0.9 0.001905 0.001905 0.001905 0.001905 0.001905 0.001905 0.001905 0.001905 0.001905 0.001905
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Fig. 10. Fragments of the multiple criteria analysis of feasible alternatives for developed construction projects.

values of the parcels can increase by correcting some of the based on explicit and tacit knowledge) and sellers (help to
determining factors. determine which features should be improved to make their
The system recommends the following: offers more attractive).
Infrastructure and engineering systems considerably impact
the value of the parcels. Variant 7 can serve as an example
(see Fig. 12): 5. Conclusion remarks

 This parcel is in a gardening area, and its engineering systems The authors of this article started publishing their research
are not part of urban systems; thus the area is underdeveloped. articles on knowledge management in 2004 (Kaklauskas et al.,
 If urban engineering networks and gas were available, the 2004; Kaklauskas and Kanapeckiene, 2005). The articles described
parcel’s market value would increase by 23%. knowledge bases and knowledge systems of real estate valuation,
building refurbishment, innovations and best construction prac-
Legal regulations (legal basis) applicable to these parcels are tice developed by the authors (Kaklauskas and Zavadskas, 2007a,
taken as another example (Fig. 12): 2009, Kaklauskas et al., 2007b, Zavadskas et al., 2006, 2008a,
2008b). The original contribution of this article, compared to the
research results published earlier, is as follows:
 Calculations show that the legal regulations for activities can
be improved by about 43%.
 Should the legal regulations for activities in this parcel  The new original Knowledge Based Decision Support System
improve by 43%, the market value would increase by 2%. for Construction Projects Management (KDSS-CPM) has been
 Improved legislation and permission to change the land developed.
purpose would help to change the status of gardening  KDSS-CPM generates recommendations in an automated
areas into residential areas; thus the market value of such manner, i.e., it is a recommender system to some extent.
parcels would increase, and this parcel would become more  KDSS-CPM is able to develop tens of thousands of alternative
attractive. variants for project management and to select the most
rational of them in an automated manner.
 The Integrated Knowledge Management Model, proposed by
Next a look is taken at how the existing environment
the authors herein, considers the economical, political, legal/
of a specific area impacts a parcel’s attractiveness (Figs. 11
regulatory, technological, technical, organisational, manage-
and 12):
rial, institutional, social, cultural, ethical, psychological, educa-
tional, environmental, emotional and confidence needs of
 Experts assigned 6 points (one of the worst scores among the stakeholders in terms of both explicit and tacit knowledge and
alternatives) to the attractiveness of the neighbourhood of
covers micro-, meso- and macro- environmental conditions as
Parcel 6 (Alternative 6, see Figs. 11 and 12).
well as a building life cycle analysis.
 Calculations show that should the environment improve by
 As developed by the authors, the KDSS-CPM can be used to
50%, the parcel’s attractiveness would increase by 2%.
perform the multivariant design and multiple criteria analysis
for the management of construction projects. Using the
Lastly a look is taken at how the size of a parcel affects its accumulated information and the models, the Knowledge
attractiveness: Based Decision Support System for Construction Projects
Management can automatically generate up to 100,000
 The size of Variant 7 is 15 ares. combinations of construction project alternatives. Further-
more the system provides decision support and forms
Calculations show that an increase of 33% in size would make recommendations significant to all the stakeholders partici-
the parcel more attractive by 2%. pating in a project by helping to select the best alternatives
Such examples prove that the system’s recommendations are and improve their characteristics based on tacit and explicit
significant both to buyers (help to select the best alternatives knowledge.
L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215 1213

Fig. 11. Fragment of recommendations for users regarding land parcels.


1214 L. Kanapeckiene et al. / Engineering Applications of Artificial Intelligence 23 (2010) 1200–1215

6 variant
Criteria describing Possible improvement of Possible increase of the market value of the alternative in %
Position the alternative the analysed criterion in % through increased value of the aforementioned criterion
1 Price 59% 4%
District area
2 environment 50% 2%
3 Legal base 43% 2%

7 variant

Criteria describing Possible improvement of Possible increase of the market value of the alternative in %
Position the alternative the analysed criterion in % through increased value of the aforementioned criterion
1 Price 386% 28%
2 Infrastructure 36% 23%
3 Parcel size 33% 2%

8 variant

Criteria describing Possible improvement of Possible increase of the market value of the alternative in %
Position the alternative the analysed criterion in % through increased value of the aforementioned criterion
1 Parcel size 122% 6%
2 Price 75% 5%
Parcel size referred to
3 needs 43% 3%

Fig. 12. Display of key recommendations in the KDSS-CPM system.

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