Concern #571 - Contingency Recommendations Misaligned With Current Cost Exposure

Project:
269 - Water Industry Development Project

Description:
Cost contingency advice and drawdown/protection recommendations are not aligned with current exposure due to the cost-risk view not being refreshed with live risk data, estimate changes, and delivery performance. This misalignment occurs when QCRA becomes a periodic specialist activity rather than part of the operating rhythm, or when cost movements are tracked without causal linkage to risk drivers and mitigations.

Desired Outcome:
Ensure cost contingency advice and recommendations are consistently aligned with current exposure by integrating live risk data and performance metrics into routine decision-making processes.

What Could Go Wrong:
Under-protection could lead to funding shocks, while over-protection might create artificial constraints and poor decision-making.

Current Situation:
The cost-risk view is not being refreshed regularly, leading to potential misalignment between contingency advice and actual cost exposure.

Action Strategy:
Implement a routine reconciliation process between current exposure, contingency position, and leadership decisions to ensure alignment.

Concern Category:
Project Management

Keywords:
risk management, cost exposure, QCRA, contingency, decision-making, risk data, project delivery

Analysis: Not available

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