## Understanding Fixed Percentage Contingency

The second type of contingency profile – Fixed Percentage –
simply adds a proportional risk buffer to the schedule and effort/cost of an
existing estimation service solution. Unlike the Target Probability
method, this type of contingency profile doesn’t factor in input uncertainty or
use Monte Carlo simulation. **Adjusting the uncertainty slider bars has no
effect on contingency solutions calculated using a fixed percentage
profile.** Fixed percentage contingency is a straightforward
calculation. Applying a 10% schedule/20% cost profile to an estimate will
produce the following results:

•
If the current solution estimated schedule is 10 months, a 10% fixed
percentage schedule contingency adds 1 month (10% of 10 months) of schedule
buffer.

•
If the current solution estimated cost is $1 million, a 20% fixed
percentage cost contingency adds $200,000 dollars (20% of 1 million) of cost
buffer.

For more detailed guidance on working with fixed percentage
profiles, see the Creating
Fixed Percentage Solutions
and Creating a
Contingency Profile sections of this user guide.