A conservative pressure-based finite-volume numerical method has been developed for computing flow and heat transfer by using an unstructured grid system. The method admits arbitrary convex polyhedra. Care is taken in the discretization and solution procedures to avoid formulations that are cell-shape-specific. A collocated variable arrangement formulation is developed, i.e. all dependent variables such as pressure and velocity are stored at cell centers. Gradients required for the evaluation of diffusion fluxes and for second-order-accurate convective operators are found by a novel second-order accurate spatial discretization. Momentum interpolation is used to prevent pressure checkerboarding and the SIMPLE algorithm is used for pressure-velocity coupling. The resulting set of coupled nonlinear algebraic equations is solved by employing a segregated approach, leading to a decoupled set of linear algebraic equations fer each dependent variable, with a sparse diagonally dominant coefficient matrix. These equations are solved by an iterative preconditioned conjugate gradient solver which retains the sparsity of the coefficient matrix, thus achieving a very efficient use of computer resources.