Project Management Central

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Topics: Risk Management
What is your preferred way to calculate contingency?
Network:14714



Do you use EMV, expert judgement or just add a percentage as a buffer to calculate your contingency.
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Network:1154



EMV based on identified risks but sanity check the aggregated amount via expert judgment.

Kiron
Network:104549



I normally add percentages per item based on previous experience. Other time I use EMV.
Network:7050



I think it is a combination of SME, EMV, Risk and percentage.
Network:89



+1 on estimating value at risk of high-probability risks, and use that amount. Senior leaders who question project budgets' contingency will find it hard to argue with that.
Network:2038



I use percentage, EMV, & predetermined guideline from AACE International
(Association of Advancement for Cost Engineering)
Network:1561



I normally use expert judgement and take a percentage of the cost of the project to calculate the contingency amount.
Network:215



I use EMV and expert judgement.
Network:857



On my side, it's an aggregate of previous experience, expert jugement and risk estimating. It depends of the project.
Network:274



Integrated Cost Schedule Risk Analysis as per AACE Recommended Practices and risk tolerance of project owner

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