What is a budget contingency and what are three reasons to have such a "safety net" in place? Have you been involved in projects where it was necessary to use contingency funds? What circumstance necessitated it? How could have the situation been avoided?
Budget contingencies are treated as a "fail safe" within projects and are usually associated with risk planning. Since some risks are unknown, the contingencies assist to cover those unknown risks that result during the project. The main reasons to have contingency and reserve funds are to cover the ...
A discussion regarding budget contingencies and projects where contingency funds were used. 204 words.