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Select a company that would benefit from valuing cost estimations and contingency reserves.

Select a company that would benefit from valuing cost estimations and contingency reserves.

Instructions

It is important to understand how contingency reserves can impact risk evaluation and cost estimation.

If you were the project manager it is critical to understand how contingency reserves impact all areas of cost estimation and ultimately the project. Consider that the company has had some difficulty setting up a method for cost estimations so this is a critical area for understanding how stakeholders will continue to support the organization.

Select a company that would benefit from valuing cost estimations and contingency reserves. Prepare a paper of 4 pages (not including the first page and APA references) explaining the development of a method for cost estimation that will include contingency reserves. Be sure to include 2 outside references in APA format.

Determine how to evaluate a company’s contingency reserves.

Recommend strategies on how companies need to apply risk techniques in order to have contingency reserves.

Objectives

  • Define project risk and contingency reserves
  • Differentiate between schedule and cost estimation to project risk
  • Evaluate how risk management affects project outcomes
  • Determine how cost estimates impacts project risks

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