Page 216 - Untitled-1

SOME CLOSING THOUGHTS 195

workscope and to be proactive in evaluating options and alternatives. In this re-
gard, it can be considered to be contingency management.

Tip The life cycle of a project consists of a series of closing
doors. Early in the project, there are usually numerous alterna-
tives for satisfying the project objectives. As we move along
further in the project, constraints in time, cost, and technology
tend to reduce the number of available options. As a basic
part of project management, and specifically a component of
contingency management, the prudent project manager iden-
tifies the critical decision points and notes the deadline for
making such decisions. Evaluations of alternatives should be
scheduled sometime prior to the closing of critical doors.

Some Closing Thoughts on Contingency

In this chapter, we have discussed the concepts of schedule contingency, cost
contingency, resource contingency, and workscope contingency, and have pro-
vided some examples of practices that can be applied to these concepts. We justi-
fied the need for contingency planning and management based on the following
realities of the typical project environment:

1. At the initiation of the project, we often don’t know the details of the entire
workscope.

2. At the initiation of the project, there is a good chance that we left some-
thing out of the defined workscope, by mistake.

3. The initial calculated project end date is usually too optimistic. We tend to
bow to sales pressures or promise anything to get the job. Also, the calcu-
lated end date often does not consider project risks.

4. The initial project budget may not allow for escalation, accidental scope
omissions, repeating failed elements of the job, and project delays.

5. The defined project workscope may have to be modified due to technical
problems, schedule deadlines, or budget limitations.

6. Resources may not be available when needed, or in the right mix of skills.

Being flexible is not a sign of weak management. On the contrary, excessive
rigidity could more easily be faulted. However, prudent flexibility should be part
of a structured, proactive process.