Project Management

Project Management Central

Please login or join to subscribe to this thread

Topics: Risk Management
Project contingency definition
Which are the types of cost to be included into the project contingency during the tendering phase?
Can anyone tell me categories needed to be considered?
Sort By:
Teresa -

Using higher priority/severity risks you can identify the points of cost impact across your project cost accounts and include the ones which are most susceptible to realization of those risks.

For example, if you are assessing a software project where there are hardware, software license and staff costs and most of the risks would result in needing more of people's time, then you'd include the staff costs category.

Kiron
For every risk, you should have a risk contingency plan. This plan will identify activities, tools and resources you will need should your risk happen. Calculate the cost of your risk contingency plan and multiply that by your post-mitigation risk probability. Add these up for all your risks and you have your contingency reserve.

Please login or join to reply

Content ID:
ADVERTISEMENTS

I'm lactose intolerent. I have no patience for lactose and I won't stand for it.

- Jerry Seinfeld

ADVERTISEMENT

Sponsors