As a result of risk analysis sums of money or amounts of time may be set aside as contingency which may be used in the event of risks occurring. Editor’s Note: Contingency should be shown in the plan as a separate item and not hidden in activities as “an extra 10%” on duration or cost .
Contingency – A Contingency is the planned allotment of time and cost for unforeseeable elements with a project . Including contingencies will increase the confidence of the overall project .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )
Contingency – An amount of design margin ,time , or money inserted into the corresponding plan as a safety factor to accommodate unexpected and presently unknown occurrences that judgment suggests will occur during the project .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )
Contingency – A component of the authorized appropriation or estimated cost at completion for the project is scope of work or a particular cost class . Contingency is an estimator’s allowance for the cost of unknowns, change s to make things work or estimating error . The anticipated award price of a cost class may also contain allowance for escalation . However, a reserve for scope changes is not a contingency in the same sense. A Scope Change Reserve is an allowance from which transfers can be made into specific cost classes when the scope of work in the class is amended by the owner . The appropriation for that class should be amended accordingly following the transfer. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )
Contingency – Time ,effort or money added to the project plan to compensate for uncertainty .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )
Contingency – A risk premium factor or amount that is added to the project budget and/or the schedule, by any party to the contract, to allow/compensate for uncertainty or risk in project implementation. (Probabilistic Risk Analysis for Turnkey Construction: A Case Study: Glossary)