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INSTRUCTOR: 
Nils J. Gransberg, ​Ph.D., DBIA, A.M.ASCE

Purpose and Background

This is a two-hour course that introduces attendees to the theory and application for developing rational contingencies using risk-based estimating and other tools in the context of infrastructure design and construction projects. Attendees will learn how to integrate contingency estimating techniques into existing risk management tools, replacing fixed percentages and lump sum contingencies with rationally developed line-item contingencies enabling active management through all project phases.

Projects need the right amount of contingency to weather the realization of “known-unknowns” that occur in every project, with the goal of finishing on-time and on-budget. Professional judgement-based, policy-based, or statutory percentages generally applied tend to be insufficiently capable of accurately forecasting the realization of actual risks, and even more so the larger and more complex the project is. Excessive contingencies needlessly tie up capital that could be used on scope betterments or other projects; insufficient contingencies lead to budget busts, schedule growth, claims, and disputes. Realistic, effective risk-based contingency development and active management is a critical function in the successful delivery of infrastructure and other projects, allowing the Project Manager to actively manage risk, avoiding the twin pitfalls of insufficient or excessive contingencies.

Benefits and Learning Outcomes

Upon completion of this course, you will be able to:

1. Explain the development and utilization of the project risk profile using a hybrid model incorporating historical data, parametric estimating factors, and professional judgement.
2. Apply statistical measures of central tendency to analyze parametric quantity and cost estimating data.
3. Explain the methodology of active contingency management, including development, exposure, retirement, and release.

Assessment of Learning Outcomes

Students' achievement of the learning outcomes will be assessed via a short post-assessment (true-false, multiple choice and/or fill in the blank questions).

Who Should Attend?

• Civil Engineers
• Project Managers
• Owner’s Representatives
• Architects and Design Professionals
• Construction Professionals

Outline

1. Module 1: Introduction to Risk-Based Rational Contingency
2. Module 2: Developing Rational Contingencies
3. Module 3: Contingency Management in Design and Construction

How to Earn your CEUs/PDHs

This course is worth .2 CEUs /2 PDHs. To receive your certificate of completion, you will need to complete a short on-line post-test and receive a passing score of 70% or higher within 30 days of the course.

How do I convert CEUs to PDHs?

1.0 CEU = 10 PDHs [Example: 0.1 CEU = 1 PDH]