Can someone please explain why for question 71 of CE practice test 1, we divide the contigency by the construction Bid amount and not total project cost? coachgarricbaker
@charmigajjar62 We divide by construction cost (not total project cost) because contingency is evaluated as a percentage of construction cost, not as a percentage of soft costs or overall project budget. Contingency is meant to cover unexpected conditions during construction, so the baseline it’s compared against is the construction contract value.
Note that the prompt asks, “What percentage of the construction cost is available for contingency…”
Hope this helps!
Kiara Galicinao, AIA, NCARB
Product Coordinator
Black Spectacles