The case for contingency allowances

Schedule and cost contingency allowances are necessary because

• At the beginning of the project

  • We don't know all the details of the work
  • We're sure to have left something out
• The initial end date is typically optimistic

  • And doesn't allow for the inevitable project risks
• Unexpected technological problems may emerge
• Resources may not be available when needed

  • Especially if there are any delays
• The budget hasn't allowed for cost escalation

  • And/or other similar risks

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