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How do I phase out uncertainty as the project progresses?

Review the uncertainties every month. Reduce or delete them when the risk is over, and replace them with a contract, change order or expected addition when the cost becomes known. The final forecast then becomes more accurate towards the end.

Review the uncertainties every month. When a risk is over, you reduce or delete the uncertainty. When the cost becomes known, you replace the uncertainty with a contract, a change order or an expected addition. The provisions then go down towards zero at the end of the project, and the final forecast becomes more accurate.

Monthly review

  1. Go to the Uncertainty module. There you see all the uncertainties on the project.

  2. For each item, ask: Does the risk still apply? Has the work been carried out?

  3. The risk is over: Reduce the amount or delete the uncertainty. The final forecast goes down, and the gain shows in the contribution margin (%).

  4. The cost is coming, but the price is unknown: Replace the uncertainty with an expected addition.

  5. The price is known: Register a change order or a purchase, and delete the uncertainty.

Uncertainty. 1: an uncertainty item. 2: the amount you adjust. 3: Edit.

Good to know

  • Posted costs are deducted from the uncertainty only when they exceed the contract or budget on the production code. "Remaining uncertainty" shows what is left.

  • Uncertainty that remains until the project is finished gives a final forecast that is too high and a contribution margin (%) that is too low.

  • Compare with the previous report to see how much the uncertainty has been reduced.

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