NAV Budgeting: Why Contingency Planning Should Be More Than a Formality
I've seen a few projects where customers said they didn't need a contingency plan, because they decided to adjust the budget as changes occurred.
While this may sound reasonable at first glance, it ignores the fact that there is an important distinction between adjusting the budget based on change requests and consuming the contingency reserve.
Let's start with the project budget. After most planning activities have been completed, after all project activities have been defined and estimated, and after the resources have been assigned to the activities, you create the project budget.