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What is the primary risk with including reserves or contingency allowances in your cost estimate?

What is the primary risk with including reserves or contingency allowances in your cost estimate?<br/>

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Asked by Agilep, Last updated: Dec 23, 2024

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agilep3

agilep

agilep3
Agilep

Answered Mar 08, 2018

C. Overstating the cost estimate

C- Contingency funds are used to handle cost uncertainty due to unknown purchases that may be needed during a project. These funds are generally used for items that are likely to occur, but not certain to occur. [PMBOK page 173] [Project Cost Management]
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