A new method of cost contingency management

Controlling the progress and performance of a project is pivotal to achieve its planned goals. Schedule and cost are often used to make a baseline for managing projects´ progress, but there are always uncertainties in planning and estimating the schedule and cost of projects. Therefore, a contingency reserve is needed to manage uncertainties and risks. In this paper, we present a new cost contingency management method. To show the benefit of our new proposed method, it is applied to a real-life bridge maintenance project, and then it is compared with an existing cost contingency management method. The comparison shows that our new method can help the project manager obtain more detailed information about the financial status of the project.