Main Menu
Home / Project Management / Saving for a Rainy Day

Saving for a Rainy Day

When having a business plan reviewed by senior management, you have to justify all expenditures. So how can you justify an expense under the heading ” contingency buffer”? Karl Wiegers makes the case for including a budget for surprises and errors, and why having such an expense in place can actually save money. According to Wiegers, you can explain the need for a contingency buffer based on historical data and by having a proven calculation for determine the amount of a buffer needed. He goes on to state that adding a buffer to every task is dangerous (citing Parkinson's law of work expansion to fit time allotted), and rather having a reserve that is removed from the task estimates reduces the possibility of resources to work longer simply because they have time to do so.

About Anne Grybowski

Anne is a former staff writer for CAI's Accelerating IT Success, with a degree in Media Studies from Penn State University.

Check Also

Avoid Ambiguity to Improve Performance

There are all sorts of factors that can plague a project that are outside of …

Leave a Reply

Your email address will not be published. Required fields are marked *

Sorry, but this content
is for our subscribers only!

But subscribing to ACCELERATING IT SUCCESS is FREE and only one click away!
Join more than 40,000 IT Professionals and get the best IT management articles to your mailbox with Accelerating IT Success!

Unsubscribe at any time