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Contingency resource curves (P3e)

4 replies [Last post]
Neil Branigan
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Dear fellow planners,

I’m curious as to how to select the best resource profile
for a contingency level of effort within P3e.

There is a default profile called ’Contingency’.
However, some Project managers wish to forecast all their contingenct at the very end i.e. (last 20% of the level of effort duration).

The obvious reason is that the PMs wish to use this conting. budget once all other project budgets have dried up i.e. at the later stages of the project.

Any guidance on the best profile to select and why??

Cheers
Neil.

Replies

A D
User offline. Last seen 1 year 11 weeks ago. Offline
Joined: 20 May 2007
Posts: 1027
There are two types of contingencies for:

Known Unknowns - Risk events that u were aware of but cant be predicted. (Mostly environmental risks)

UNKNOWN UNKNOWNS - Which we never thought of

CONTINGENCY RESERVE for the Known Unknows are in-built into the activties or work packages, while MANAGEMENT RESERVES are planned for unknown unknowns.

Management reserves cannot be used by the project Manager.

Cheers,
Oliver Melling
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Joined: 24 Apr 2007
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Sorry,

I meant unregistered risk event!
Oliver Melling
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I agree, contingency is money you keep under the matress for when a registered risk happens.
Steven Oliver
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(IMHO) You should never plan to spend contingency, and it should therefore always be at the end of a plan.

Monies which are identified to specific Risks (as opposed to Contingency) should be allocated to the time period during which the risk is likely to occur.