Project Risk Analysis and Contingency Determination

CCG is very experienced in the use of risk analysis techniques to facilitate solutions to problems where uncertainty is a major factor. The most important factor causing estimating uncertainty is typically the level of process and project definition when the estimate is prepared. A low level of project definition causes a high degree of uncertainty in the cost estimate and expected schedule durations.

The use of estimate risk analysis provides a structured, analytical approach for evaluating the uncertainty involved with all elements of the estimate, and can be used to establish a recommended contingency amount for any given project.

Our experience at developing risk analysis models that are used with advanced simulation techniques provides a basis to determine the probability associated with overrunning or underrunning an estimate. This allows the client to understand the cost risks associated with a given contingency amount. It also helps to identify the key elements that may affect the sensitivity of any particular project estimate.

CCG has developed unique proprietary cost estimate risk analysis and contingency estimating models that provide focus on project-specific risk drivers, in addition to the systemic cost risk inherent in every project. These models both improve the process of contingency determination; as well as providing an enhanced methodology for managing contingency.

Risk Analysis is an important tool in today's cost-sensitive project environment. CCG can help you maximize its potential!