The best practice approach applies regular and consistently timed reporting of contingency management performance throughout the investment lifecycle to enable effective decision-making.
Reviewing performance of contingency management against initial baseline estimates is a means for early identification of potential and/or realised risks and issues, enabling effective responses and optimising contingency performance across the portfolio.
Responsibilities for monitoring and reporting contingency performance against baseline estimates should be aligned with delegations of authority, such that monitoring and reporting activities are undertaken by the governance authority allocated contingency ownership.