PPD Form 3 Q13

The question asks to find the percentage represented by hard cost contingency over total hard costs. As I understand it, the hard cost contingency is part of the hard costs, so first you must add it to the total, then divide the hard cost contingency by the total number. I appreciate any feedback you all have on this one! Thanks, Han

Hi @ruedibear -

The key here is to understand the difference between project hard costs vs. total hard costs. The project hard cost does not include the contingency, while the total hard cost does. The question here asks for the hard cost contingency expressed as a percentage of the project’s hard costs. Therefore you would not add in the contingency to the total (denominator) but instead calculate the % using the following:

Hard Cost Contingency/ Project Hard Costs (In this case : Construction + FFE) = %

Chapter 9 of the AHPP (Edition 15) is a good additional resource to review on this.

Hope that was helpful. Tag me (@coachpriyaiyer) for any follow ups or additional PPD questions.

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