How Cost Contingency is Calculated?
Imagine that you are asked to estimate the total cost of a project. You have measured the quantities, and estimated the cost and price of each resource required for executing the scope of the project. After all the hard work that you have put into developing the cost estimate, you are asked how confident you […]
What is Contingency Reserve in a Cost Estimate?
Summary: Have you ever reviewed a Cost Estimate of a project? Have you ever wondered what “Contingency” is in a Cost Estimate? Do you know why a contingency reserve/ fund is allocated to a cost estimate? Cost contingency is a reserved fund that is added to a base cost estimate to account for cost uncertainty. […]