A highway construction contractor has developed a base $($or deterministic$)$ estimate for a project of $$18,500,000.$ The deterministic schedule is $320$ calendar days and the cost for each day of delay is $$5,000.$ The contractor has completed a qualitative risk analysis in addition to their bid as follows.

Risk Register

$\backslash$table$[[$Risk Description,$\backslash$table$[[$Probability of$],[$Occurrence$]],$Cost Impact,$\backslash$table$[[$Schedule$],[$Impact$]]],[$Delay due to extreme weather,Medium,None,Medium$],[$Delay due to environmental violation,Low,None,High$],[$Subcontractor default,Very Low,High,Medium$],[$Delay in material delivery,Medium,Very Low,Low$]]$

Probability of Occurrence

$\backslash$table$[[$Description$,$Probability$],[$Very Low,$0-2\%$