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Economic evaluation of the construction

Economic effectivness analysis of the road and motorway constructions is solved by cost-revenue analysis which is based on the comparisson and evaluation of the positive and negative impact of the construction work on traffic, surrounding, required sources in monetary terms. The cost and revenue is observed during the construction and management of the road. The output reflects social impact, e.g. use of time, casualty, losses due to noise and exhalation. The investment cost of the complete construction as well as the amount of the investment per year shall be defined. Basic indicators are traffic intensity and development trends.

Two evaluation methods of the construction effectivity:

1. socio-economic revenue method: defines time in years when the investment costs will be compensated by savings
2. grade of profitability – dynamic method reflecting value of money changeable in time and observes the flow of money after
   the investment is repayed. The result is the percentage of interest expressing the interest rate as a condition for cost revenue.

 

Updated: 17.5.2016

Published: 27.11.2008

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