Abstract
Contractors frequently encounter various problems during project construction, even when properly employing traditional project management techniques and tools. These problems result in low project performance and poor project outcome. A dynamic simulation model is proposed to capture the dynamics of construction projects in the construction phase. Eight key feedback structures from previous models of project dynamics and the unique characteristics of construction projects are identified as dynamic hypotheses. They include the structures of labor, equipment, material, labor and equipment interaction, schedule, rework, safety, and quality. Subsequently, a formal simulation model is mathematically formulated in terms of stock and flow diagrams. The model is then calibrated into a real project under construction. Part of testing indicates that the simulated behavior of the model and the actual behavior of the project are similar. This implies that the model is able to simulate the dynamics of the project and, consequently, to enhance project monitoring and control.