Project contingencies

Contingency This is a provision for unforeseen events that experience has demonstrated are hkely to occur. Contingencies are of Rvo types process and project contingency. In the former, there are uncertainties in... 

For preliminary estimates, a 15 to 20 percent project contingency should be applied if the process information is firm. As the quality of the estimate moves to definitive and detailed, the contingency value may be lowered to 10 to 15 percent and 5 to 10 percent, respectively. Ejq)erience has shown that the smaller the dollar value of the project, the higher the contingency should be. 

Contingency can vary from 5 to 25%, depending on project status. " Reference 2. 

Regardless of the estimating method, a process contingency should be added to the total plant cost for feasibility studies. As discussed earlier, this contingency depends on the status of the project. For most factored estimates, on a first of a kind process that is fairly well defined, the process contingency should be 30%. 

Successful installation, or roll-out, of your PSM systems requires sound planning and effective execution. No matter how diligent you have been, or how receptive and well-managed your company may be, no system as complex as PSM can work perfectly the first time. As every project manager knows, it s impossible to anticipate every outcome or contingency—especially when human behavior is involved. Pilot testing a new system provides the opportunity to identify weaknesses under controlled conditions this in turn enables you to fix problems before the system becomes fully operational. Once these problems are corrected, the pilot test produces a template for installation that can be replicated elsewhere. 

At the beginning of the contract, it will be known to the client and his consulting engineer how much money is budgeted for the project. The contractor will be aware of the contract value, of course, and he will know of any contingency sums that have not yet been allocated. 

Eigenvector projections are those in which the projection vectors u and v are eigenvectors (or singular vectors) of the data matrix. They play an important role in multivariate data analysis, especially in the search for meaningful structures in patterns in low-dimensional space, as will be explained further in Chapters 31 and 32 on the analysis of measurement tables and general contingency tables. 

For the purpose of comparison, we also discuss briefly the biplot constructed from the CFA using the exponents a = 0.5 and P = 0.5 (Fig. 32.10). Such a display is meant to reconstruct the values in the transformed contingency table Z by projections of points representing rows upon axes representing columns (or vice versa) ... 

Thermoeconomics of the LHS system involves fixed capital investment, operational and maintenance cost, and exergy costs (Domanski and Fellah, 1998). Total fixed capital investment consists of (i) direct expenses that are equipment cost, materials, and labor, (ii) indirect project expenses that are freight, insurance, taxes, construction, overhead, (iii) contingency and contractor fee, and (iv) auxiliary facilities, such as site development, auxiliary buildings. 

From the management point of view, it is important to outline all the steps and devise various contingency plans for the entire product development project. For this purpose, the RAT2IO module and the objective-time chart can be of use [9]. RAT2IO stands for resources, activity, time, tools, input/output information, and objective (Table 16.2-2). 

Q takes into account, where appropriate, fhe inclusion in the study design of sufficient animals to study recovery and pharmacokinetics, the projected mean body weight of the animals over the study and a 20% contingency for unexpected losses, etc. 

Total capital required (TCR) includes TCC, design, inspection, project management, construction management, management reserve, and contingency. 

The foregoing options, and what follows, relate only to the development aspects of a project. You should not allow concern for your own development to cause you to neglect such essential matters as orgeinizational purposes or how the project will impact on others. You also need to be prepared for contingencies. Unexpected events, people s reactions and views, changing circumstances, will need to be accommodated as the project unfolds. 

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