How do we control project contingency without hiding it?
Opaque contingency managementShow contingency separately with its purpose, authority, and remaining exposure. Track usage against approved responses so stakeholders can distinguish uncertainty protection from scope expansion.
What to do now
- Define the reserve's intended use
- Agree release authority
- Record each approved drawdown
- Reassess remaining exposure against the balance
When to escalate
Escalate when
Remaining reserve is insufficient for material known uncertainty.
Who decides
The budget owner and authorized finance representative
Example
A data-remediation reserve is released only for documented cleanup needs discovered during validation.
Mistake to avoid
Distributing hidden padding across every cost line.
Prevent a repeat
Review remaining cost and commitments, not only money already spent; reconcile with the authorized finance source.
Related cases
- A change request has no budget impact listed. Is zero credible?Incomplete change impact
- Our budget ignores internal staff time. Should we include it?Incomplete cost visibility
- Our contingency budget is being used for extra features. Is that acceptable?Contingency misuse
- The schedule has no buffer. Should we add one?Unmanaged schedule uncertainty