barcode reader sdk vb.net Adding contingencies to our schedule and budget in Software

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Adding contingencies to our schedule and budget
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We face a basic problem when we try to incorporate the risk plan into the project plan. We are planning for what might not happen. Any given risk event might not happen. But, life being what it is, some of the risk events are almost certain to occur. We just do not know which ones. The solution is a contingency. A contingency is an amount of time or money set aside to be used if and when risk events occur. For example, we might say to the customer: If our project goes exactly as planned, it will cost $100,000 and take ten weeks. But we ve made a list of what might cause trouble, and we d like to ask for an additional $20,000 and one extra week to use if we need them. We will only spend the extra money and take the extra time if something goes wrong, if one of the risk events occurs. In this
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example, we have asked for a 20% contingency fund for money, but only a 10% contingency for our time schedule. Some companies track two separate contingency funds for each project. One is for risk and the other is for change requests that come from the customer. If a risk event occurs, and it will increase cost or delay our schedule as we work to deliver on the original plan, we draw from the contingency for risk. On the other hand, if the customer makes change requests, not to x errors, but to add new features, we draw from the contingency for change requests. Basically, we are saying, If you want this, we ll do it. But you ll have to pay for it, and you ll have to give us time to do it right. Scope creep is a big risk for a project. If we allow too much change, the whole project can go over budget or simply fall apart under its own weight. We can avoid this by adding a contingency fund and time budget for customer change requests. To do this, we explain change control from the start. Then we tell the customers that, if they request a change later on, the money will be drawn from their contingency fund, and they may need to allow for later delivery. If this is done well, it helps customers take responsibility for the changes they request. It gives incentive for them to make an accurate assessment of the value of the change, and decide if they want to incur the costs of adding work to the project so that they can get the extra feature added to the product or service. However, we need to be careful. It would not be fair to use the contingency for customer change requests for xing a problem the customer nds in our work, or for solving a problem outside their control. For that, we use the contingency for risk events. How big should our contingencies be There is no easy answer to this question. Major corporations that use quantitative risk analysis can adapt statistical formulas to determine the size of contingencies. However, most of the time, we have to evaluate the project, the risk plan, and the customer.    Evaluating the project means asking how routine vs. how unique the work and the tools are for the team. We evaluate the risk plan by reading it through and thinking about what contingencies we will need to cover the amount of risk that is likely to occur overall, plus a bit more for bad luck. We evaluate the customer, based on past experience if we have any, on how quickly and clearly they respond to information we give them, on the degree to which they understand the 1:10:100 rule and the importance of stages, gates, and project management, on the
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