Portfolio Value Optimization Model for Sustainable Construction Projects

Taha Anjamrooz’s thesis provides valuable research for the construction industry, encouraging developers to consider sustainability as a key criterion in their portfolio selection. If adopted, his research has the potential of positively transforming the construction industry’s sustainability impact. 

Conducted under the supervision of Dr. Sameh El-Sayegh, Taha’s research aims at developing a new portfolio value optimization model that integrates sustainability, organization benefit realization, and project success criteria in order to shift decision-making towards sustainable outcomes. His research identifies 26 selection criteria classified into two groups: the first, the sustainability group, consisting of three pillars—environmental, social and economic—and the second, with two subgroups—organization benefit realization and project success. 

Through engaging with key developers and clients in the UAE construction industry, Taha was able to determine the weight of these new criteria should they be used in the decision-making process. He found that, when presented with these criteria, developers do indeed consider sustainability as more important than organizational benefits and project success. Specifically, the top six selection criteria for developers were revealed to be energy use, material use, health and safety, strategic fit, profitability and organizational risk. 

Based on these findings, Taha developed three portfolio value optimization models, including a project screening matrix, a linear programming model and genetic algorithms, and presented a real case study to demonstrate their application. 

Taha proposes these models as a valuable tool for developers to ultimately impact decision-making toward sustainable construction.