Abstract :
In the contracting business simulation plays an increasingly important role in tendering and project execution in the evaluation of alternatives and assessing the risks associated with solutions. The benefits and financial savings generated by simulation come from direct labour, capital investment, productivity improvements (and savings in) overheads and materials. Once armed with the knowledge of the benefits that may be achieved, the managers next step should be in quantifying what it will cost to generate a model that will produce adequate results on which to base a decision; this is done together with the systems modeller. A spreadsheet is used to calculate the duration of such a modelling task. Other aspects of managing a simulation model for contracting businesses are also presented
