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 are Internal Failure Costs?
Everything comes with a cost. When an organization tries to reduce the costs associated with non-conforming products, still costs related ...
What is Stakeholder Cube?
The decisions about stakeholders' engagement and involvement and their influence on the project can be made using the stakeholders' information ...
What is Quality Leadership?
Project management and total quality management are closely related when it comes to leadership. The elements of good leadership in ...
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 ...
What is Storyboarding?
Prototyping is a method that is used to experiment on the design or a model of the actual product/deliverable. This ...
What is To-Completion Performance Index?
It is important to monitor if the actual work performed is according to the plan/schedule and within the planned budget. ...