Davood Fathollahi - Department of Industrial Engineering of Payamnoor University, Tehran, Iran
Ramin sadeghian - Department of Industrial Engineering of Payamnoor University, Tehran, Iran

A construction project involves a wide diverse range of professionals that work together for a relatively short period of time on the design and construction of a project. Due to the lack of principled relationships and communication among different sub-contractors involved in projects, many beneficial opportunities cannot be recognized during the construction time. In this study, we discuss how subcontractors can benefit considerably from cooperation to complete faster and to manage joint resource in projects. We present a numerical example which subcontractors agree to put their resources in a joint pool to allocate the resources using a more cost-effective plan. The Shapley value concept is used for allocating of the benefits of cooperation among the cooperating sub-contractors. Results show that significant cost savings can result from full cooperation among sub-contractors based on group rationality as opposed to individual rationality.

Project management; Negotiation; Joint resource; faster completion; Cooperative Game Theory