I’ve mentioned it before, but it’s worth repeating. We do not pad work estimates.
Padding work estimates means adding more time or cost to project tasks than is needed to account for unforeseen issues, delays, or uncertainties. Padding is intended to create a buffer to ensure the project can be completed even if difficulties arise.
Let’s look at an example of padding. Say a task is estimated to take 2 weeks to complete. Padding occurs when the task is scheduled for 3 weeks providing extra time to recover from delays or fix any defects.
It is a deceptive practice because it inflates time and cost estimates.
So how do we add extra time to a project schedule without padding estimates?
We use a management reserve.
A management reserve is a portion of a project budget that is set aside to cover unforeseen risks or delays by unplanned events. It is a contingency for the unexpected.
Management Reserve
- Is a percentage of the total project hours or cost. Usually, 5 to 10% of the total project hours or schedule
- It is the last activity on the project
- Make it visible and manage it
Here is what it looks like:
