The results of the financial analysis of an engineering project close out can be influenced by some elements that lead to an increase of the actual investment of the project with respect to the budgeted one. Among the additional costs are those connected to the payment of penalties or to overtime work as a consequence of delays caused by unfavourable weather conditions. To face these situations, appropriate funds in management reserve are used.
The authors propose a model that takes in consideration the influence of “waiting on weather” on financial analysis of a project and its application to a case study regarding offshore projects.
