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What Is Contingency?

Contingency in Dash360 is an additional cost reserve, calculated separately from the base estimate, to account for the probability and impact of identified risks. Rather than padding individual resource assignment costs, Dash360 tracks contingency as a transparent, auditable layer on top of the base estimate — so you can see both the base cost and the risk-adjusted total at any level of the WBS. Contingency is configured per project and controlled by registry settings. Some projects track it; others do not. When active, it flows through to budget reports, the CPR section, and cost summary views.

The Sanders Methodology

Dash360 uses the Sanders methodology to calculate contingency. This approach breaks risk into three independent dimensions — Technical, Cost, and Schedule — and combines them into a single contingency percentage using risk factors and multipliers.

The Three Risk Dimensions

DimensionWhat It Captures
TechnicalRisk from design uncertainty, technology maturity, or requirements instability
CostRisk from estimating uncertainty, historical cost growth, or rate volatility
ScheduleRisk from schedule uncertainty, dependencies, or resource availability

Factors and Multipliers

Each risk dimension has two inputs:
  • Risk Factor — the probability or likelihood level (selected from a predefined dropdown, e.g., Low / Medium / High, mapped to a numeric value)
  • Multiplier — the severity or cost growth potential if the risk materializes (selected from a predefined dropdown, mapped to a numeric value)
The Contingency % for each dimension is derived from the Factor and Multiplier values. The three dimension percentages are combined (using the Sanders formula, not a simple sum) to produce a single Total Contingency %.

Override

If the calculated contingency percentage does not reflect the true risk judgment, an Override Contingency % can be entered manually. An Override Basis text field captures the narrative justification for the override.

Basis Text

Each dimension has a Basis text field for narrative justification — explaining why that probability and severity level was chosen. These entries are part of the basis of estimate and appear in the Contingency Assignment Report.

The Four Configuration Modes

Contingency behavior is set per project via Registry settings. There are four modes:

Mode 1: None

Contingency is not tracked for this project. The Risk Factors section and contingency columns do not appear anywhere on the Budget Form. The base estimate is the total estimate.

Mode 2: Work Package Level

A single set of risk factors (Technical, Cost, Schedule) is entered once at the work package level in the Risk Factors section of the Budget Form. The calculated contingency applies to the work package total. This is the simplest mode — one contingency entry per work package, regardless of how many resource assignments exist.

Mode 3: Resource Assignment Level

Contingency is entered separately on each resource assignment inside the Add/Edit RA modal. Each RA gets its own Technical, Cost, and Schedule risk factors, producing its own contingency % and $. Contingency columns (Contingency % and Contingency $) appear directly in the Labor, Non-Labor, and Travel grids so you can see RA-level contingency at a glance.

Mode 4: Both (Work Package + Resource Assignment)

Both the Work Package-level Risk Factors section and the RA-level contingency fields are active simultaneously. Key behavior in Both mode: When you save the Risk Factors at the work package level, Dash360 bulk-updates all resource assignments on that work package with the WP-level factor values. This gives you a fast way to set a uniform contingency across all RAs, while still allowing individual RAs to be fine-tuned afterward if specific resources carry different risk profiles.

Where Contingency Appears in the UI

LocationWhat It Shows
Budget Form — Risk Factors sectionWP-level Technical/Cost/Schedule factors (Mode 2 and 4)
Budget Form — RA modal, Contingency sectionRA-level factors, calculated %, override (Mode 3 and 4)
Labor / Non-Labor / Travel gridsContingency % and Contingency $ columns (conditional, Mode 3 and 4)
Budget Reports — Contingency Assignment ReportAll contingency assignments across WPs and RAs for a project
CPR sectionContingency is included in the total cost used for EV calculations when applicable

Registry Settings That Control Contingency

These settings are configured by your administrator in the Registry:
Registry KeyWhat It Controls
Contingency-at-Resource-Assignment-LevelEnables RA-level contingency (Modes 3 and 4)
CostEstimatingFormHideRiskFactorsHides the WP-level Risk Factors section entirely
CostEstimatingFormHideOverrideContingencyHides the Override % field in the Risk Factors and RA contingency sections
The contingency source file (the lookup table for Factor and Multiplier values) is assigned per project in Edit a Project.