How is a contingency allowance in an estimate generally intended to be used?
Correct answer: A. For identified or possible uncertain costs
- A. For identified or possible uncertain costs
- B. For the contractor's guaranteed personal income
- C. For replacing all measured quantities
- D. For paying only permanent site labour
Explanation
A contingency allowance provides for reasonable uncertainty, such as minor unforeseen work or cost variation, depending on the contract and estimating practice. It is not a substitute for measuring the work or a guaranteed payment to the contractor.
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About Construction Management and Estimation
Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
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