Contingency Notes: Definitions & Explanations PDF | Download eBooks
Study Contingency lecture notes PDF with project management definitions and explanation to study “What is Contingency?”. Study contingency explanation with project management terms to review project management course for online MBA programs.
Contingency Definitions:
Contingency is an amount the contractor may want to include to cover the unexpected.
Successful Project Management by Jack Gido and James P. Clements
Contingency is defined as an event or occurrence that could affect the execution of the project that may be accounted for with a reserve.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Contingency Notes:
Contingency is also termed as management reserve. The costs of all the activities are estimated by the contractor in a proposal. Also the cost of the needed resources i.e. material, labor, equipment etc. are roughly calculated. However, sometimes a task or an activity fails in the first time. Those activities must be performed again. In addition, some of the tasks may get overlooked when the estimations were made. Moreover, an emergency regarding material, equipment or labor can occur while performing the project. Based on these fact, a contractor adds contingency in the cost estimates to cover up the cost of the said situations.
Keep Learning with Project Management Notes
What is Crashing?
Uncertainties can happen in the project. Due to these uncertainties, the project schedule must be adjusted. The process by which ...
What is Cost Baseline?
Cost baseline is basically a detailed budget of the project. The cost estimates of all the associated activities are included ...
What is Strategic Impact?
Different characteristics are associated with project related risks. A project manager usually identifies the probability of a risk to occur ...
What is Statistical Sampling?
Sometimes, the number of products produced are very high and not all of them can be inspected. In this case, ...
What is Responsibility?
No single organizational structure is good for all organizations. Organizations tend to take on diferent structures based on their size, ...
What are Time Management Skills?
A project manager must possess time management skills. A project is time specific. It involves a lot of tasks and ...