METHODOLOGY FOR COMPARATIVE ECONOMIC-ANALYSIS OF CONSTRUCTION AND TSM ALTERNATIVES

In order to assess the difference in economic effects between construction projects and non-construction TSM investments, an economic analysis was conducted using the traditional 'benefit-cost ratio' (B/C) method. The TSM investments consist of costs required to fund a staggered work hours (SWH) program, increasing the vehicle occupancy rate (VOR), and increasing the transit mode split. This method determines the ratio of benefits to cost after each project/alternative has been discounted with respect to its expected life at a minimal attractive rate of return (i. e. , all projects/alternatives were discounted to an equivalent uniform annual cost based on an expected life of 20 years and a minimal attractive rate of return of 10%). Projects with B/C ratios greater than one ( greater than 1. 0) are considered economically attractive while those with B/C ratios less than one ( less than 1. 0) are considered not to be economically efficient.