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.
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