For a $500,000 renovation project in an occupied building, what contingency percentage is most appropriate?
Correct Answer
C) 12-18%
Renovation projects in occupied buildings typically require higher contingencies (12-18%) due to unknown conditions, coordination challenges, and potential discoveries during demolition.
Why This Is the Correct Answer
Renovation projects in occupied buildings require 12-18% contingency due to multiple risk factors that don't exist in new construction. Unknown conditions behind walls, coordination with ongoing operations, and potential discoveries during selective demolition create significant cost uncertainties. The occupied nature adds complexity for scheduling, noise restrictions, and safety protocols that can drive unexpected costs.
Why the Other Options Are Wrong
Option A: 5-8%
5-8% contingency is too low for renovation work and is more appropriate for straightforward new construction projects where conditions are predictable and there are fewer unknowns.
Option B: 8-12%
8-12% contingency might be suitable for simple renovation projects in unoccupied buildings, but doesn't account for the additional complexities of working around occupants and their operations.
Option D: 18-25%
18-25% contingency is excessive for most renovation projects and would typically only be justified for highly complex projects with extreme unknowns or historic buildings with significant structural uncertainties.
Memory Technique
Remember 'RENO = 12-18' - RENOvation projects need 12-18% contingency, especially when people are still living or working in the space
Reference Hint
Look up contingency percentages in construction estimating chapters or project management sections of your reference materials
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