This paper is concerned with issues of model quality and model limitations in the context of applications involving the design and development of relatively complex engineering systems. Consideration is given to the role of simulation models throughout the whole life cycle of an engineering system from the initial specification stage through all stages of system procurement, including construction, testing, commissioning and approval. Issues of model quality, testing and validation are emphasised in the paper. The approaches considered stress the importance of physically-based models within engineering system design. Generic models and libraries of re-usable sub-models are considered, especially in the context of model testing, validation and approval. Practical issues concerning the management and maintenance of models throughout the life-cycle of the systems that they represent are also given prominence.