Abstract:
This thesis presents a payment scheduling problem with bonus and penalty where both the client and the contractor are considered. In the study, an equitable solution is sought to determine the amount and timing of the payments. The equitable solution is defined as one where both the contractor and the client deviate from their respective ideal solutions by an equal percentage. The unit bonus and penalty are taken as constant percentages of the total payment with respect to the completion of the project under a given deadline. The bonus earned by the early completion is shared between two parties. However, the whole penalty is incurred by the contractor. Since the bonus and the penalty have an effect in the same direction on the project schedule, the bonus and the penalty cases are considered separately. In this thesis, a double genetic algorithm is employed, where the outer loop reveals a payment distribution, and the inner loop determines the timing of the activities and the payments so as to achieve maximum NPV for the contractor under a given payment distribution. The proposed GA is evaluated using a set
