1. Preliminary business case stage • Estimate contingency requirements for preliminary financial assessment of the project. • Identify roles and responsibilities for managing contingency based on the risk profile. • Submit proposal for endorsement. |
|
2. Final business case stage • Revise and quantify contingency funds for accurate financial appraisal of the project. • Assign roles and responsibilities for management of contingency based on the risk profile. • Propose monitoring and reporting arrangements for use of contingency. |
|
3. Project development stage (Pre-tender) • Finalise contingency provision. • Assign ownership for all contingent risks according to identified roles and responsibilities. • Establish monitoring and reporting arrangements for use of contingency. |
|
4. Project delivery stage • Approve release of contingency as risks materialise according to governance framework. • Monitor and transparently report on contingency utilisation against forecast. • Return surplus contingency funds to be invested elsewhere in the portfolio. |