Understanding project cost contingency estimation: a holistic risk perspective

Purpose Cost contingency is widely employed to address project risks. This systematic literature review aims to develop a framework for understanding risks in project cost contingency estimation. Design/methodology/approach A systematic literature review of 859 abstracts and 67 full articles was conducted using a framework synthesis method. Findings The study establishes a six-element risk framework for project cost contingency estimation, encompassing event, consequence, uncertainty, probability, knowledge, and mitigation. Twelve risk dimensions in the project cost contingency estimation are further developed. Originality/value This study contributes to the project management literature by constructing a framework for understanding risks in project cost contingency estimation. This framework provides guidance for enhancing the accuracy of project cost contingency estimation.