Bala S DuvvuriProject Manager| ShellBangalore, Karnataka, India
Hello All,
Has anybody come across a team member trying to justify padding as contingency reserve or as a project manager you are trying to justify padding as a contingency reserve with the client
I am basically trying to understand the pointers to differentiate between padding and contingency reserves
Eric LamySenior Project Manager| Keurig Green MountainNewbury, Ma, United States
If you feel the need for padding, you should call it out by declaring the unknowns and securing a contingency reserve to accommodate. When you pad estimates directly, you are obfuscating the uncertainty and thereby increasing the associated risk. Padding is just a way to justify charging more for a task without being able to provide rationale for doing so. One can understand the appeal, as it helps to make the individual who provides the estimate look better should they come under the eventual estimate, but this doesn't help produce better estimates over time and is ultimately a dishonest practice. Saving Changes...
Bala S DuvvuriProject Manager| ShellBangalore, Karnataka, India
Thanks Eric.
Basically i am trying to understand from your experiences if you have come across any team member who tried to justify padding and how did you tackle that . Saving Changes...
At times one may come across known unknowns- that is one was not in a position to estimate exactly. In such situations, a reasonable padding with a note such that a review is possible at later stage as a risk review. Saving Changes...
Anonymous
Padding - the way it is commonly understood is adding time or money without proper justification; basically hiding it in the details so management do not see it.
Contingency is to cover risks - known unknowns
other than that people either do not understand the concept or are playing a game. Saving Changes...
Anonymous
Jan 26, 2016 3:46 AM
Replying to Suhail Iqbal
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Nobody can justify PADDING as it is not allowed. If there is a justification available, it is no more a padding but a reserve.
Suhail - you made me laugh - who does not allow it? what police is controlling this. It is up to company policies to consider whether they allow it or not.
Further, if padding is in the open - then it is just another form of contingency that is being applied at the lower level and again if management wants to allow this - it is their call.
The issue with Padding is that usually people do not try to justify it - they hide it. Hiding "money or time" is not a recommended practice in mature organizations. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
If I can, I always try to move padding into contingency reserves or, at least, path buffers.
Once you make it visible, it is not unusual for management to cut back your contingency and buffers. Those who fear these cuts might leave it in the tasks to obfuscate.
That's because they are more interested in the project looking good than they are in delivering the project as quickly and cheaply as possible. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Some people name it padding. Some other people name it buffer. But the only way I found to justifify it to internal or external client is because uncertainty (I know there are other justifications about that). And uncertainty must be recorded as risk. As project manager, no matter you are those visible or not, you have to have them visible. Padding is not contingency reserve. Saving Changes...
In my mind, padding is another word for buffer or contingency. Of those 3 words, "padding" has the worst connotation, then "buffer", then "contingency". Padding may have a bad connotation due to its use sometimes in the past to boost company reputation (or profits) by finishing early and under budget.
If possible, for transparency, associate a cost amount and schedule timeframe with each assumption and (known) risk. That makes it very clear to all involved that the estimating is done with diligence. Obviously, the amount to associate with "unknown unknowns" is probably not quantifiable, but maybe should be some percentage of the budget adjusted for complexity, and the preponderance or sparsity of other risks.
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2 replies by John Herman and Rami Kaibni
Jan 27, 2016 8:14 PM
Rami Kaibni
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Hi John,
IMHO, Padding - Buffer - Contingency are totally three different concepts.
Padding is just assuming without justification based on best guess.
Buffers are used in CCM to avoid target date slippage and are non-schedule work activities.
Contingency: The cost of Known-Unknowns and is part of the cost baseline.
Of all the above, Padding should not be used at all.
Feb 02, 2016 9:13 AM
John Herman
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Hi Rami, While I understand that you recognize that the 3 words have 3 different meanings, it's the rest of the world that needs clarification. So, we need to be careful about our choice of words and to properly explain them when used.
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