Consistent, effective and efficient engineering approaches to uncertainty and risk assessment help businesses to better understand and quantify the range of possible consequences and the organisation’s overall risk exposure. This empowers organisations to proactively manage the treatment and response actions for risks and opportunities, while making informed decisions and optimising their investments.
While there are already a large number of publications on the subject of contingency, there were three main reasons for publication of this Guideline:
- 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
- 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
- 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.
The RES Contingency Guideline provides a reference document for different practical approaches and guidance for determining, allocating and managing the most appropriate contingency (time and cost allowances) at different stages of the project and program lifecycle. It excludes escalation and its interaction with other uncertainties.
Revision: 2.0; Release date: February 2019
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Cataloguing‐in‐Publication entry is available from the National Library of Australia at:
http://catalogue.nla.gov.au ISBN: 978‐1‐925627‐39‐8