- When considering adding a contingency allowance to your budget:
- Avoid contingency.
- Based on the WBS input, make sure that the work package do not already have a contingency amount tacked onto the base estimate.
- Inform the project team.
- Let them know that the project will be managed against a point estimate without contingency.
- As project manager, you must release contingency funds only through closely controlled and well documented process, which is typically included in the cost management plan.
- Contingency is not to be used as a slush fund without controls.
Thursday, February 21, 2008
What is Contingency Allowances in Cost Budget?
For Contingency Allowances,
Suggested Study Materials
- PMP-Preparation Recommended Books
- PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
- A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
- The PMP Exam: How to Pass On Your First Try (Test Prep series)