Contingency Guideline (2nd edition)

Contingency Guideline, Edition 2

While there are already a large number of publications on the subject of contingency, there were three
main reasons for publication of this Guideline:

1. The Guideline is mainly designed to help reach consensus in the methods used for contingency
determination across industry and government, by providing comprehensive information on
principles and practical methods. It also details when methods are applicable, their reliability, and
how they vary at different stages in the project lifecycle

2. Most current recommended practices and guide notes only focus on ‘contingency determination’,
mainly for cost estimation purposes. However, this Guideline also provides practical details about
other key aspects of contingency process, e.g. ‘allocation’, ‘control’, and ‘program contingency’,
not only for cost estimation but also project planning

3. Application of contingency determination methods can be expensive and time‐consuming, so it is
important to select the most practical option. This Guideline will help practitioners to discuss and
select the optimum method of balancing their requirements and constraints. It highlights that
there is no one method to suit all situations, and provides a framework to assist practitioners and
organisations in discussing and selecting the best method for their requirements.