Abstract: Despite the growing body of knowledge regarding software engineering and management of projects involving software development or integration, such projects frequently overrun cost and schedule estimates by a factor of two or more. In the first part of this two-part series, it was argued that conventional methods of estimating the effort involved in software development projects are flawed because they do not take rework into account, or at the very least are unable to accommodate reliably the need for rework effort. Rework impacts upon almost every aspect of software projects, from the earliest stage when requirements are being captured, through to final acceptance testing. How rework impacts upon each phase of the project, and the project overall, is identified through the use of a dynamic simulation coupled with scenario planning. Using the approach described in this article, managers of projects involving software development can identify where management and engineering efforts are best directed, before committing to delivering a project which subsequently proves unexpectedly costly or involves undue risk.