Project estimating requires predicting the future. Like ancient prophets and soothsayers, today's project managers are experts in telling people what is going to happen. The key to success, then, is to ensure that what actually happens is the same as the estimate. This might seem like magic sometimes, but it requires strong project cost estimation techniques. Project … [Read more...]
Contingencies vs. Management Reserves
One of the most confusing aspects of Project Management is the concept of Contingencies and Management Reserves. When are they used? What are they used for? And how are they applied? In this article I will lift the veil. Contingencies Contingencies are amounts placed in the project estimate to account for "known unknowns." That is, the … [Read more...]