Contractors’ financial budgeting using computer simulation

Contractors’ budgets are often performed on an overall basis. Changes in strategies and mix of contracts are very difficult to evaluate on such a basis. Thus, the accuracy of current budgets is in question. A new approach has been developed to perform contractor's budgeting, by generating and integrating individual current and future projects. The principle of simulation was introduced to generate possible scenarios according to the specified strategies and the expected environment. The model was tested using various verification techniques and was confirmed to be a reliable simulation tool.