Contingency Definition
A contingency is an uncertain event or condition that, if it occurs, will have a positive or negative effect on a project. A contingency can be internal or external to the project. Internal contingencies are under the control of the project manager, while external contingencies are not.
There are four common types of contingencies:
1. Schedule Contingency: This is an allowance of time added to the project schedule in anticipation of possible delays.
2. Cost Contingency: This is an allowance of money added to the project budget in anticipation of possible cost overruns.
3. Performance Contingency: This is an allowance for extra resources added to the project in anticipation of possible performance problems.
4. Resource Contingency: This is an allowance for additional resources added to the project in anticipation of possible resource shortages.
