Project Scenarios, Budgeting, and Contingency Planning

Abstract

This chapter focuses on a number of project management techniques that have been developed to address the project constraints, in terms of functionality, deadlines, and quality levels, can be reasonably expected to remain constant over the project life cycle. It introduces a number of business-related issues in an estimation context such as Project scenarios for estimation purposes the probability of underestimation and the need for contingency funds, an example of contingency funds at the project level, managing contingency funds at the project portfolio level and the managerial prerogatives. The selection of a single number as the project budget is the result of a business and management decision and consists of the allocation to the project of an amount of money or effort within the estimated range. The obvious avenue to the effective and efficient management of contingency funds is to maintain them at portfolio level.