Michael CantoniPMO Manager| AM General LLCOsceola, In, United States
I recently was told that according to the PMP standard that Project Budget Contingency reserved is no longer considered an important aspect of project management. I have not read anything that supports this claim. Does anyone have insight to support or deny this statement. Saving Changes...
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Eric SimmsSenior Program ManagerBaltimore, Maryland, United States
I don't know PMI's stance on this, but I always incorporate a budget contingency when possible. The more complex or riskier the project, the more likely you'll need a contingency. Saving Changes...
PMI (PMBOK 6th Ed) still defining the "Contingency Reserves" as "Known Unknown"
This "Contingency Reserves" might used by PM for any risky project(s).
However "Management Reserves" is "Unknown Unknown" is might be used but NOT by PM. this can be determined by percentage (for example 2%-5% by management at early life cycle of project. Saving Changes...
Mahabubur RahmanProject Manager Structures-Bridges| Department of Infrastructure, Government of Nothwest TerritoriesYellowknife, Northwest Territories, Canada
Contingency reserve is included in the cost baseline for risks already been identified early in the project. It is still in the latest version of the PMBOK (6th ed) and has been a common practice in managing projects depending on the availability of funds. But have no idea whether it is no longer been considered an important aspect or not. Saving Changes...
Al TaylorI.T. Contractor| IndependentWaterloo, Ontario, Canada
also with Eric but just wondering...is contingency perhaps less relevant in Agile than it is in Waterfall ?
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1 reply by Eric Simms
Jul 11, 2018 2:52 PM
Eric Simms
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I think you're right - contingencies aren't as crucial in Agile due to the ability to adjust sprint velocities. I think less need for a contingency only applies to a mature team; a team implementing Agile for the first time should have a contingency.
Saving Changes...
Deepa KalangiManager, Program Management, Author, Trainer| CVS HealthCharlotte, NC, United States
I don't think so. Contingencies are the important aspect of project management, without which project's success is not smooth. Known unknowns, unknown unknowns need to be evaluated and need to have a risk analysis and contingency allocated for every project. Saving Changes...
Reserve analysis is still an important tool (under Data Analysis) for time and cost estimation in the Sixth Edition of the PMBOK Guide. I've also provided feedback on the draft of the upcoming rewrite to the Risk Management Standard and it also places a lot of emphasis on reserves and reserve analysis.
Kiron Saving Changes...
Eric SimmsSenior Program ManagerBaltimore, Maryland, United States
Jul 11, 2018 11:51 AM
Replying to Al Taylor
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also with Eric but just wondering...is contingency perhaps less relevant in Agile than it is in Waterfall ?
I think you're right - contingencies aren't as crucial in Agile due to the ability to adjust sprint velocities. I think less need for a contingency only applies to a mature team; a team implementing Agile for the first time should have a contingency. Saving Changes...
RAJESH K LProject Manager, PMP| Bharat Electronics, Bengaluru, IndiaBengaluru, Karnataka, India
Agree with Kiron & Eric Saving Changes...
Tamer Zeyad SadiqAssistant Cost Manager| Turner & TownsendRiyadh, Ar Riyad, Saudi Arabia
Already mentioned in PMBOK as our collegues!! Saving Changes...
