Contingency plans increase the chance that the project can be completed on
time and within budget. Contingency plans can be simple “work-arounds” or
elaborate detailed plans. Responsibility for risks should be clearly identified and
documented. It is desirable and prudent to keep a reserve as a hedge against
project risks. Budget reserves are linked to the WBS and should be communicated
to the project team. Control of management reserves should remain with
the owner, project manager, and line person responsible. Use of contingency
reserves should be closely monitored, controlled, and reviewed throughout the
project life cycle