A Contingency Plan in Project Management is a predetermined plan of action taken in case an unforeseeable event occurs that hinders or prevents the successful completion of a project. This type of plan provides alternative strategies and procedures to ensure that the project’s objectives are still achieved even when the primary strategy or procedure fails. The contingency plan also helps to avoid disruptions to operations, minimize downtime, protect resources, and reduce costs of any delays or additional labor arising from the unforeseen event. It’s the sharp-eyed project manager’s insurance policy against risk!