What is the typical range for contingency allowances on new commercial construction projects in Florida?
Correct Answer
C) 5-15%
Contingency allowances for new commercial construction typically range from 5-15%, depending on project complexity, site conditions, and design completeness. Lower percentages apply to well-defined projects, while higher percentages are used for complex or preliminary designs.
Why This Is the Correct Answer
The 5-15% range for contingency allowances on new commercial construction is the industry standard that accounts for varying project complexities and risk factors. This range allows for lower percentages (5-8%) on well-defined, straightforward projects with complete designs and favorable site conditions, while higher percentages (10-15%) are appropriate for complex projects with preliminary designs, challenging site conditions, or significant unknowns. This range balances the need to protect against unforeseen costs while remaining competitive in bidding. Florida's specific conditions, including hurricane risks and varying soil conditions, support this higher range compared to residential projects.
Why the Other Options Are Wrong
Option A: 1-3%
1-3% is too low for commercial construction projects and would be more appropriate for very simple residential projects or change orders to existing contracts where scope is extremely well-defined.
Option B: 3-8%
3-8% is on the lower end and would only be appropriate for the most straightforward commercial projects with complete designs, but doesn't account for the typical complexities found in most commercial construction.
Option D: 15-25%
15-25% is excessive for typical commercial construction and would be more appropriate for highly complex projects like hospitals, laboratories, or projects in very early design phases with significant unknowns.
Memory Technique
Remember 'Commercial 5-15' - Commercial projects need 5-15% contingency, with 5% for simple and 15% for complex projects. The range covers the 'FIVE to FIFteen' spectrum.
Reference Hint
Look up contingency allowances in the project management or estimating sections of construction management references, or Florida Building Code administrative sections dealing with project costs.
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