Contingencies-Develop Risk Response:
A) What if the worst happens, or an unexpected event occurs?
B) Technical risks – problematic
C) Both schedule and cost risks need “trade-offs”
Schedule risks:
- the use of slack (float time)
- imposed duration times
- compressing schedules
Cost risks:
- include such things as time/cost dependency, cash flow decisions, price protection risks, etc.
D) Contingencies need funding:
- whether from pre-budgeted reserves or from more general management reserves.