Mashayekhi, Ali Naghi, "Dynamics of Development Cost Structure", 1991
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A cost structure is presented for the development projects based on two kinds of cost: base cost and progress cost. The base cost is necessary to keep a project alive and ready for real progress. The progress cost is to make physical progress in the project. A dynamic model is made and simulated to show the behavior of this cost structure. The model shows that when development budget is not sufficient to pay for all the required expenses of an ongoing development projects, total cost of development projects would increase and completion time of the projects would rise. Insufficiency of development budget occurs either by decline of government revenues or by start of too many new projects. In the face of insufficient budget, it becomes very crucial to decrease the starting rates of new projects. By decreasing the number of starting projects, the behavior of the model in terms of completion time and unit cost of the projects improves considerably when budget insufficiency appears.