2019 CSCE Annual Conference - Laval (Greater Montreal) Conference
Dr. Hesham Osman, Cairo University
The residential real estate market in Egypt, especially the one for gated communities, has witnessed significant growth to meet the increasing demand for housing units. This demand has been driven by in-creasing population growth and relocation of residents to less crowded areas. Accordingly, many high-end residential communities, commonly known as compounds, have been developed in new suburbs in the outskirts of Cairo. In spite of the significant investment in this sector, the performance and the quality of the provided housing facilities in the majority of these compounds have rapidly deteriorated over time due to lack of maintenance. This is partly due to insufficiency of funds to cover the expenses associated with the facilities’ life cycle and misalignment between the financial resources and the costs incurred. This financial gap is due to missing pre-defined level of service (LOS) which subsequently lead to improper allocation of funds, high inflation rates, and incomprehensive study of the implications of the funding strategies on the facilities performance. Accordingly, this research paper presents a service-level based optimization model that determines the optimum level of service for each facility service to maximize the overall facilities’ performance under the limited funds available, considering the life cycle costs over a predefined time horizon. Moreover, the model allows conducting sensitivity analysis to examine the facilities’ performance under different funding strategies, and to determine the timing to introduce supporting financial resources. Using a real case study of a high-end residential compound, the proposed optimization model proved to be able to arrive at an optimum solution that determines the optimum combination of LOSs for each service without com-promising the overall performance of the residential community under the limited funds available. This model, therefore, is a potential tool that can help provide quality facility management in a cost-effective manner.