Planning for Unknowns Essay Example | Topics and Well Written Essays - 250 words

Planning for Unknowns - Essay Example In this case where a major hurricane hit the work site, then it is a good case of unknown â€Å"unknowns† which nobody may have foreseen (or complete uncertainty) and the best way to be able to deal with this type of risk is setting up a contingency budget (Futrell, Shafer, & Shafer, 2002, p. 591). So if this contingency fund is available, then the strategy would be different. A contingency reserve budget will allow for greater flexibility. The plan will be to hire additional workers to beef up the manpower and allow continuously working even at nights so as to make up for the lost time of ten days. This allows for project completion on the original due date but there will be cost overruns because of added manpower but the target date will be met. The reserve budget can pay for the additional workers to accomplish more work output and also pay for extended working time by effectively doubling it by working even at night