In Table 18.1 we stated that not all of the contingencies were additive. Why not? Add together the high-end range of each type of contingency.

Table 18.1

What is the total percentage? What would happen to a project’s pro forma (look ahead to Chapter 23) if an owner includes this cumulative amount?

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Table 18.1 Contingency values Contingency types Estimate type Budget GMP Owner contingencies: Design contingency 10-20% 5-10% Document contingency (1) NA 10% Permit contingency ΝΑ 1% Scope contingency 5-10% 5% Unforeseen conditions (1) ΝΑ 10% Contractor contingencies: Totals: Lump sum ΝΑ 5-10% 1-3% 0-2% 5-10% Escalation contingency ΝΑ 2-3% included in cost Estimating contingency 5% 1/2-1% included in profit Construction contingency ΝΑ 2% included in profit | NET NET KAN MAN (2) (2) (2)