ABSTRACT
Construction and engineering projects are most times faced with complex and disturbing real-life problems during execution which threaten the achievement of project objectives. Attempts to solve existing problems gave rise to the maxim “necessity is the mother of invention” which describes the advent of the Monte Carlo Simulation method. This chapter aims at discussing the Monte Carlo Simulation method and its application in construction and engineering projects with the view to demonstrate its use in cost and schedule risk management. A critique review of literature and illustrative methodological approach was adopted to show the management of cost and schedule risks in construction projects using Primavera software. The outcome clearly indicates how risks associated with cost and schedule performance of construction projects are managed. The essence is to curb the lack of good understanding of the Monte Carlo Simulation method, the misconception about its complexity and to promote its diffuse uptake in the management of risks in construction and engineering projects.
