- Contingency Allowance
-
  Specific provision to cover variations which may occur in the expected values of elements of cost or schedule, but not scope or quality.
Editor's Note: Contingency Allowance is not the same as Contingency Reserve. [D00308]
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RMH |
- See Reserve. [D00307]
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|
- Specific provision for unforeseen elements of cost within the defined project scope: particularly important where previous experience relating estimates and actual costs has shown that unforeseen events which will increase costs are likely to occur. If an allowance for escalation is included in the contingency it should be as a separate item, determined to fit expected escalation conditions of the project. [D00309]
|
PMK87 |
- Contingency Budget
- The amount of money required to implement a contingency plan. If the project board approves a contingency plan, it would normally set aside a contingency budget, which would only be called upon if the contingency plan had to be implemented. [D05297]
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PRNC2 2002 |
- Contingency Budget Procedure
- A formal approval process by which sums identified as budget contingency may be applied where needed.
Editor's Note: There is much controversy over the management of contingency sums, ranging from dipping into the "big pot" approach to the incremental allocation of money to activities based on their relative risks. Moreover, the reallocation of contingency money is frequently a bone of contention between management and accounting departments. [D02536]
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RMW |
- Contingency Plan
- If a particular risk event occurs, a plan to be executed in order to minimize the impact after that event. [D05949]
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MoR-UK |
- A plan that identifies key assumptions beyond the project manager's control, and their probability of occurrence. The plan identifies alternative strategies for achieving project success. [D00310]
|
PMK87 |
- A fallback position, or workaround in the event of an adverse occurrence, or risk event, on the project. [D02537]
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RMW |
- An alternative for action if things don't go as planned or if an expected result fails to materialize. [D00311]
|
OTOB p271-4 |
- Mitigation plan. Alternative course(s) of action devised to cope with project risks. See also Risk Plan. [D04576]
|
APM
BS |
- A plan that provides an outline of decisions and measures to be taken if defined circumstances, outside the control of a PRINCE2 project, should occur. [D05298]
|
PRNC2 2002 |
- Contingency Planning
- The development of a management plan that uses alternative strategies to ensure project success if specified risk events occur. [D00313]
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WST |
- The development of management plans to be invoked in the event of specified risk events. Examples include the provision and prudent management of a Contingency Allowance in the budget, the preparation of alternative schedule activity sequences, workarounds and emergency responses to reduce the impacts of particular risk events, and the evaluation of liabilities in the event of complete project shut down. [D00312]
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RMH |
- Contingency Reserve
- A provision held by the project sponsor for possible changes in project scope or quality. Scope and quality changes constitute changes in the project manager's mandate and will affect the project's cost and schedule.
Editor's Note: Note the distinction from Contingency Allowance. [D00315]
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RMH |
- See Reserve. [D00314]
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- Schedule and/or financial resources set aside to be used for unforeseen but reasonably anticipated surprises. [D05299]
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MFC |
- Continuous
- Happening without a break, non-stop. [D02538]
|
RMW |
- Continuous Improvement
- Constantly striving to make things better, which is a particular aim of a Quality Assurance Program [D02539]
|
RMW |
- Continuous Reporting
- Reports available on-line from data that is entered in real time. [D02540]
|
RMW |
- Contract
- A binding agreement to acquire goods and/or services in support of a project. [D00320]
|
PMK87 |
- A contract is a mutually binding agreement which obligates the seller to provide the specified product and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories:
[D00316]
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PMK96 |
- A document containing the terms of an agreement. [D00317]
|
NPMT |
- A mutually binding agreement in which the contractor is obligated to provide services or products and the buyer is obligated to provide payment for them. Contracts fall into three categories: fixed price, cost reimbursable or unit price. [D00318]
|
WST |
- An agreement in law between the organization as owner, and a consultant (See Agreement) or a construction contractor. It is a commitment document. The term contract is used to refer to the document itself. Construction contracts are often classified and described by the terms of payment they contain: Stipulated Price or Lump Sum, Unit Price, Cost Plus, etc. [D00319]
|
CCCP |
- An agreement between two or more legally competent parties, in the proper form, on a legal subject matter or purposes, for a legal consideration. [D02291]
|
DSMC |
- A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. [D03476]
|
GAT |
- An agreement between two or more persons, which creates an obligation to do or not to do a particular thing. Its essentials are competent parties, subject matter, legal consideration, mutuality of agreement, and mutuality of obligation. [D05770]
|
087 |
- Contract Administration
- Monitoring and control of performance, reviewing progress, making payments, recommending modifications and approving contractor's actions to ensure compliance with contractual terms during contract execution. [D00321]
|
PMK87 |
- Contract Administrator
- An official who has the authority to negotiate, enter into, modify, and administer contracts. [D04044]
|
CSM |
- Contract Award
- The signing and issuing of contract documents to a contractor. [D02292]
|
RMW |
- The final outcome of the acquisition process in which generally the contract is awarded to one prospective supplier, through acceptance of a final offer generally either by issuing a purchase order or the signing of a legally binding contract formalizing the terms under which the goods/services are to be supplied. [D00322]
|
PMK87 |
- Contract Award Ranking
- Qualitative and/or quantitative determinations of prospective suppliers' bid/tender/ proposal/quotation relative to each other measured against a common base. [D00323]
|
PMK87 |
- Contract Breakdown
- The breakdown of a contract into measurable packages, measurable activities such as units of work performed, or milestones verifiable by corresponding checklists. [D02541]
|
RMW |
- Contract Budget Base
- The negotiated contract cost value plus the estimated value of authorized but unpriced work. [D00324]
|
WST |
- Contract Change
- An authorized modification to some terms of the contract. This may involved any of the following: A change in the volume or conditions of the work involved, the number of units to be produced, the quality of the work or units, the time for delivery, and/or the consequent cost involved. [D02542]
|
RMW |
- Any written change in the terms of a contract. [D03478]
|
GAT |
- Contract Change Notice
- A written buyer notice, directing the contractor to make specific changes to the contractual effort. Cost and schedule impacts of the change must be negotiated. Also called Contract Change Order (CCO). [D04045]
|
CSM |
- Contract Change Order
- See Contract Change Notice. [D04046]
|
|
- Contract Closeout
- Activities that assure that the contractor has fulfilled all contractual obligations and has released all claims and liens in connection with work performed. [D00325]
|
PMK87 |
- Settlement of a contract. [D00326]
|
WST |
- Final contract settlement including resolution of all outstanding items and payments. [D05300]
|
MFC |
- Contract Completion Date
- The date established in the contract documents for the completion of all or specified portions of the work. This date may be expressed as a calendar date or a number of work days from the issuance of the Notice To Proceed. When time extensions are issued by the owner, this revised contract completion date is referred to as the Adjusted Contract Completion date. [D04951]
|
PDG |
- Contract Dates
- The dates specified in the contract that impact the project plan. [D00327]
|
PMK87 |
- Contract Dispute
- Disagreement between the parties. This may occur during contract execution or at completion and may include misinterpretation of technical requirements and any terms and conditions or due to changes not anticipated at the time of contract award. [D00328]
|
PMK87 |
- Contract Document System
- The system in place to store, retrieve, reference and update contract documentation. [D02543]
|
RMW |
- Contract Documentation
- All formal documents directly associated with a contract such as the signed agreement and its terms; general conditions, specifications, special conditions and specifications, etc.; all illustrative materials such as explanatory drawings, sketches schematics, flow diagrams, production schedule, etc.; the records of any modifying terms as a result of contract negotiations; and any other documentation that serves to clarify the intent between the parties at the time of contract signing.
Editor's Note: Contract documents should NOT include the original invitation to bid, tender conditions, and similar instructions which are of historic interest only once the contract is let and may serve to be in conflict with the final negotiated contract. [D02544]
|
RMW |
- Contract Documents
- The set of documents which form the contract. [D00329]
|
PMK87 |
- Contract Elements
- To be legally enforceable, a contract must include the following: an offer, an acceptance, consideration, execution by competent parties, legality of purpose, and clear terms and conditions. [D03477]
|
GAT |
- Contract Financial Control
- Exercise of control over contract costs. [D00330]
|
PMK87 |
- Contract Form
- The formal legal cover sheet that is signed by the parties that gives effect to the contract. [D02545]
|
RMW |
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Definitions for page C09: 50
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