A key project function is cost management. A major challenge is how much to allow for contingency (the cost of carrying risks). This video explains how any project manager can easily manage this critical aspect of cost management.
There are three areas of uncertain costs in all projects. Managing cost variables may now be easily modelled by any project team rather than using expensive consultants. This video outlines how.
What does “the effect of uncertainty on objectives” (ISO 31000 definition) mean in a project environment? Standard risk management processes are focussed on identifying and managing risks that MAY happen. That applies to both a project and non-project environment. Where projects differ is that management practice also introduces (correctly!) two other areas of uncertainty – cost...
Clients are often concerned about the accuracy of estimates and the derivation of contingency. The only 100% certainty is that the estimate and actual outturn costs will not be the same! The nature of an estimate often comprises items where the amount of information known is very good through to a complete guess. Similarly, contingency...
