Thing

Cost contingency

When estimating the cost for a project, product or other item or investment, there is always uncertainty as to the precise content of all items in the estimate, how work will be performed, what work conditions will be like when the project is executed and so on. These uncertainties are risks to the project. Some refer to these risks as “known-unknowns” because the estimator is aware of them, and based on past experience, can even estimate their probable costs.

About the author

Gleb Tsipursky

Gleb Tsipursky

CEO of consulting, coaching, training firm Disaster Avoidance Experts and bestselling author of Never Go With Your Gut: How Pioneering Leaders Make the Best Decisions and Avoid Business Disasters.