initiatives at DBM Level 2 do not typically go according to the initially
programed plan, however, they do typically remain within the contingency established
for risk. The amount of contingency depends on the nature of the situation
the commodity, labor conditions and regulatory constraints. Unlike Level 1
where there is the benefit of repetition and adjustment, at Level 2 one can
anticipate the initial baseline to degrade by as much as the contingency. A reasonable
contingency in the order of 20% will entail a project efficiency of roughly 83%.
To enhance performance, at greater cost and risk, the Project Manager has the
prerogative to "crash" or "fast track" the project schedule in an attempt to bring
the end date forward.
It is important thus to get the contingency calculations as accurate as possible
as profitability of the job depends on it.