Price tag of project delays

How to calculate the cost of project delays? This article describes an approach, which shows the cost of delays in the percentage of net present value  (NPV) of projects. The theory is not prepared to use on a single project. The target is to show the cost of delays generally for a given organisation, which runs several project in parallel, since the method uses generalities. The result is usable to help avoid or eliminate the bottlenecks in the company or organisation.

The calculation prescinds from the every day’s business but still focuses to the real problem, which is the accurate delivery of project targets, by effective resource allocation.