What is the most appropriate contingency percentage for a renovation project in an existing building where unknown conditions are likely?
Correct Answer
A) 10-15%
Renovation projects typically require higher contingencies (10-15%) due to unknown conditions like hidden structural issues, outdated systems, and unforeseen complications that are common in existing buildings.
Why This Is the Correct Answer
Renovation projects in existing buildings require 10-15% contingency because they involve significant unknowns that cannot be fully assessed until work begins. Hidden structural damage, outdated electrical/plumbing systems, asbestos, lead paint, and code compliance issues are common discoveries that can substantially increase project costs. This higher contingency percentage accounts for the inherent risks and uncertainties present in older buildings that new construction projects don't face.
Why the Other Options Are Wrong
Option C: 3-5%
20-25% contingency is excessively high and would make most renovation projects financially unfeasible, though it might be considered for extremely complex historic renovations or disaster recovery projects.
Option D: 20-25%
5-8% contingency is still insufficient for renovation projects, as this range is better suited for minor remodeling or projects with minimal structural involvement.
Memory Technique
Use 'RENO = 10+' - RENoVation projects need 10% or more contingency due to the unknown conditions lurking behind walls and under floors.
Reference Hint
Florida Building Code Chapter 1 - General Provisions, and construction estimating references covering contingency planning for renovation work
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