Contingency Drawdown is to possible conversion of the project budget category from the contingency cost (the amount added to an estimate to allow for items, conditions, or events that are uncertain but will likely result in cost increase) to the risk management that is decreased as the project moves along toward completion. A Contingency Drawdown plan can be defined by assigning relative risk values to project categories, and then releasing contingency against as each category progresses, and its inherent risk diminishes. Risk analysis and management techniques are used to be sure that the appropriate amount of contingency is maintained through project completion.
Related Definitions in the Project: The Project Cost; Risk Management
