Contingency Plan Notes: Definitions & Explanations PDF | Download eBooks

Study Contingency Plan lecture notes PDF with project management definitions and explanation to study What is Contingency Plan?. Study contingency plan explanation with project management terms to review project management course for online MBA programs.

Contingency Plan Notes:

Sometimes a task or an activity fails in the first time while carrying out the project. Those activities must be performed again. Moreover, an emergency regarding material, equipment or labor can occur while performing the project. Also, the risks identified in the risk assessment process, even if monitored and reduced, can occur during the project. This can incur extra expense e.g. cost of the new material purchased because the actual material was faulty or less than the requirement, overtime of workers, price escalations etc. Due to the occurrence of an emergency in the project, a contingency plan must be added into the base line plan. A contractor adds contingency in the cost estimates to cover up the cost of the said situations and implements the contingency plan in case an emergency happens.

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