Abstract:
Construction Industry all over the world is prone to risk and variability. To cover risk and variability in an effective manner, contingencies are determined and released to overcome the adverse effect of risk and variability when materialized. Contingency management plays very important role in improving project risk management and project success. Reviewed literature show that companies carrying out construction projects usually determine and release contingencies with goal of protecting the objectives of the project. Literature review states that some of them determine and release using formal procedure while others defined them in a subjective and non-systematic manner. Since construction projects are mostly carried out for external clients; they are awarded to lowest bidder almost every time. Therefore, a sound characterization of contingencies defined in bidding and execution and impact on project success is required. The major goal of this research is to explore the relationship between contingencies and project success. A survey questionnaire was developed and was distributed to contractors registered with Pakistan Engineering council. This research aims to shape contingency management as a driver of process improvement as well as project success. Conclusions of this study will help the practitioners of construction industry to deal with contingency management more effectively.
