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Glossary

Sensitivity Analysis

Sensitivity Analysis is a method to examine how variations in project parameters can impact the overall outcome.

Topic: 
Construction Risk Management
Date posted: 
July 26, 2023
Date updated: 
June 23, 2025

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What is sensitivity analysis?

Sensitivity Analysis is a method to examine how variations in project parameters can impact the overall outcome. It aids project managers and owners to understand how feasible changes in project variables - either costs, schedules or resources - can affect the project, allowing for informed decision-making.

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Variation Register Template

Use our FREE Variation Register Template! Track and document changes or variations to the original project scope, timeline, budget, or other contractual terms.

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Take a construction infrastructure project, for instance. As project manager, you're considering labor cost savings by using automated equipment. Using Sensitivity Analysis, you can explore how this change might affect your project timeline, completion rate, and overall budget. Fine-tuning these variables provides a clearer view of the potential benefits or drawbacks, guiding you to make the best strategic decisions.

Our software integrates Sensitivity Analysis, granting you the power to:

  • Predict Outcomes: Understand the impact of altering individual project elements.
  • Prioritize Effort: Identify variables that have a significant influence on the project's success.
  • Informed Decision-Making: Design strategies with insights on how project variables interact.

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