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Contingencies-Develop Risk Response

Contingencies-Develop Risk Response:
A) What if the worst happens, or an unexpected event occurs?

B) Technical risks – problematic

C) Both schedule and cost risks need “trade-offs”

Schedule risks:

  • the use of slack (float time)
  • imposed duration times
  • compressing schedules

Cost risks:

  • include such things as time/cost dependency, cash flow decisions, price protection risks, etc.

D) Contingencies need funding:

  • whether from pre-budgeted reserves or from more general management reserves.

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