Contingency plans are plans than could be enacted to mitigate project risks identified during risk assessment, if those risks increase or materialise. That is, they are alternative courses of action devised to cope with project risks.
Predictable risks that could be mitigated with forward planning might include:
- Non-delivery of materials. An alternative design might be prepared, or bulk or specific items could be pre-ordered before contractors are appointed
- Lack of available work force. This could be tackled by the provision of a site labour camp or by overseas recruitment.
- Lack of plant and equipment availability (or plant failure or access to spare parts). Plant such as piling rigs and spares could be ordered during the design stages prior to contractor involvement.
- Illness. This could be mitigated by insurance cover for key personnel.
- The risk of obtaining planning permission or other statutory approvals. This might be mitigated by early consultation with statutory authorities prior to design, or by employing ex-statutory authority employees, or consultants familiar with the statutory authority.
- Information and communications technology failure. This might be mitigated by duplicating facilities, establishing back-up procedures and providing uninterrupted power supplies.
- Failure of power or water supply. This might be mitigated by the duplication of supply, uninterrupted power supplies or the provision of standby generators.
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