What is Contingency Allowances in Cost Budget?

For Contingency Allowances,

• 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.