Health Infrastructure manages contingency centrally under the Project's Executive Steering Committee (ESC). Allocation of contingency funds awarded to Project and Client levels is made through a formal submission process to the ESC, based on a nominated Risk Owner.
To be allocated contingency funds, formal requests for contingency are required to consider:
• Phase of the project
• Type of risk/level impacted by risk
• Allowance required for risk.
Project and Client contingencies are kept and maintained separately.
This approach allocates contingency to the governance level best placed to manage the risks, promoting efficiency and avoiding duplication of contingency funds. While contingency is set on a project-by-project basis, the overall management and control of the contingency is achieved at a portfolio level.