Monte Carlo Simulation for Cost Forecasting in the Green Building Project

Abstract

Monte Carlo Simulation is a mathematical technique that generates random variables for modelling risk. This technique is suitable and benefits to the various client such as public and private sector to evaluate the costing prepared by the Quantity Surveyor. The methodology used is a qualitative approach consisting of a case study and document analysis. The result shows through Monte Carlo simulation, can predict the worst return from the accuracy of the estimation and given absolute confidence for project development.