IRM endorsement of the Engineers Australia RES Contingency Guideline 2nd Ed
Contributed by Gareth Byatt (IRM APAC Ambassador)
The IRM, through our Infrastructure Risk Special Interest Group (SiG), is pleased to endorse the Engineers Australia Risk Engineering Society (RES) Contingency Guideline 2nd Edition, which has been just released in March 2019 and is now available on the RES website here.
The efficient assessment and proactive management of contingency, both schedule and cost allowances, is vital to ensuring the success of projects, and we support this body of work.
This Guideline document, which also includes one of our SiG Committee members as a contributor, provides valuable information for professionals involved in project/program/portfolio management.
The Guideline document also provides:
- A detailed review of the methods available for ensuring reasonable and accurate cost and schedule contingency allocations on projects, and guidance on how to apply these methods;
- How to use risk-based decision making techniques such as risk workshop facilitation, Quantitative Risk Analysis (QRA) and Risk Registers to help calculate appropriate contingency amounts which are appropriate for a project’s risk level;
- How to take into account and combat cognitive bias when determining project cost and schedule contingency;
- How to address contingency management from the project to portfolio level;
- How to allocate contingency amounts (in project contingency and management reserve) and how to control contingency draw-down through change control (including a return of contingency to project budget holders if appropriate).
Our Infrastructure Risk SiG has liaised with the RES since early 2018. Our joint activities include holding joint webinars to connect Risk and Project practitioners in Infrastructure from across the world. We are delighted to continue this dynamic relationship for the mutual benefit of the members of both associations as well as our risk engineering and management profession globally.