This paper puts forward a simulation model specifically designed for holistic evaluation of project functionality within a life cycle project management framework. The authors describe a methodology for development of the aforementioned tool, referred to as a dynamic simulation modeling system (DSMS). The DSMS is geared toward modeling of service and manufacturing processes with hierarchical and modular modeling methodology; however, the underlying philosophy can be adopted for modeling any generic system. The enhanced modeling features and logical division of large systems into small process components and their internal linkage are the key contributions of this work. The aim of this development is to apply the simulation technique in order to evaluate the overall project functionalities from the dynamic business perspective. A set of business objective functions (i.e., life cycle objective function [LCOF]) has been employed as a basis for decision making throughout the project’s life. Object-oriented programming language with the object-oriented database technology facilitates the necessary model capability. A brief case study has been used to demonstrate and discuss the model capability.