Ranking of Speculative Property Development Options Using Constrained Weighted Factor Scoring Model

Abstract

Investors in the property development business require reliable early-stage guide in order to make the best use of their scarce resources. One of the factors that influence the accuracy, reliability and long-term sustainability of such a guide is the type of model applied in evaluating factors likely to influence the selection of the investment. This study, therefore, aims at investigating the relative reliability of scoring models against traditional financial models in project selection and prioritization. The method of study was by critical exposition of existing related literature and evaluative study. The findings of the study showed the ability of constrained weighted scoring model in obtaining weighted measures for revealing the strengths and weaknesses of proposed development options in meeting predetermined project selection criteria. The study concluded that scoring models bridge the gap created by financial models especially with respect to their inability to cope with non-financial considerations and multi-projects with multi decision criteria. The study recommended that project selection must be on criteria that best support achievement of organizational goals.