The provision of contingency in an estimate (usually 3-5% of the estimated cost) is meant to cover:
Choose the correct answer
Contractor profit
Unforeseen items, minor miscellaneous work, and variations not anticipated during preparation of the estimate
Cost of materials only
Mobilization charges
Correct Answer
B. Unforeseen items, minor miscellaneous work, and variations not anticipated during preparation of the estimate
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Contingency: typically 3-5% of estimated cost. Covers: unforeseen site conditions, minor omissions, price escalations between estimate preparation and execution, small additions/changes during construction. Supervision charges (for departmental works): 2% additional. Contingency is NOT for scope changes - those require revised estimates.
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