Excess resource idling can result in cost overruns, while low resource coverage or long lead-time in resource acquisition can delay the project schedule. Therefore, systematically managing this tradeoff is critical to ensure project delivery in time and within budget. In addition, to provide practically useful guidelines and tools, the dynamic construction process needs to be realistically represented. As an effort to address these issues, a model-based dynamic approach is proposed for construction resource management. The dynamics of construction progress and the tradeoff with resource coverage are identified. Then, the dynamic resource management model that has been developed using system dynamics is described. By simulating the model with heuristic and industry data, the effect of resource coverage on project performance is quantified and policy implications are obtained for dynamic resource management. Finally, the use of the model as an automated tool is demonstrated.