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Topic History of : Cost Gain from execution

Max. showing the last 6 posts - (Last post first)
2 years 1 month ago #22795

Devin

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The PMBOK (pg. 265), "...when opportunities are captured and resulting in cost savings, funds may be added to the contingency amount, or taken from the project as margin/profit."

Again, the PMBOK is not prescriptive (telling you what to do), but rather descriptive (what could happen). The other option is to simply run a budget surplus and depending upon how large the delta is this might be a fine way to go (if the savings is 5% or so). If it's a small project and the delta is large as a percentage of the project, you would probably add it as a catch-all contingency because running 40% under-budget is just not a meaningful way to run a project IMHO.

Hope this helps.
2 years 1 month ago #22741

Gbemi

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If a project makes a cost gain from execution, where does the gain go to?

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