INTEGRATING NET PRESENT VALUE AND BENEFIT COST RATIO METHODS IN CONSTRUCTION PROJECT PLANNING AND MANAGEMENT: A LITERATURE REVIEW

Abstract

Effective planning and management of construction projects require precise financial feasibility analysis to ensure successful investment outcomes and optimal resource utilization. Net Present Value (NPV) and Benefit Cost Ratio (BCR) are widely used economic evaluation tools, yet their integration is still rarely applied in a systematic manner. This study employs a Systematic Literature Review (SLR) to examine the benefits and applications of integrating NPV and BCR within the context of construction projects. The findings reveal that combining these methods offers a more comprehensive assessment of project feasibility by accounting for both absolute project value and investment efficiency. This integration enhances financial risk management associated with cost fluctuations and project scheduling through optimized payment systems and adaptive float time management. Moreover, the inclusion of supporting indicators such as the Internal Rate of Return (IRR) strengthens investment decision-making. Therefore, the integration of NPV and BCR provides a holistic and practical analytical framework to support more accurate, efficient, and sustainable investment decisions in construction project planning.