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.