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: 15-25%
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 B: 3-8%
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 D: 1-3%
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.
More Contract Admin Questions
A project experiences a 30-day delay due to unusually severe weather. The contract includes a liquidated damages clause of $1,000 per day for delays. If the weather delay is excusable but not compensable, what liquidated damages apply?
A commercial project requires a total of 12 inspections. The building department charges $85 per inspection for the first 5 inspections, $65 for inspections 6-10, and $45 for any additional inspections. What is the total inspection fee?
What document must be posted at the job site before a Certificate of Occupancy can be issued for a commercial building?
A mixed-use development requires a variance for reduced setbacks. The property is located within 500 feet of a hospital. What additional consideration must be addressed?
A LEED project requires tracking of regional materials. Materials are considered regional if they are extracted, harvested, or recovered, as well as manufactured within what distance of the project site?
An indemnification clause in a construction contract typically requires the contractor to:
A property owner wants to convert a single-family home into a duplex in an area zoned for single-family residential use. The conversion meets all building codes but violates density requirements. What approval is needed?
As-built drawings are typically required to be submitted:
AIA Document A401 is primarily used for:
A general contractor is building a 12,000 square foot commercial warehouse. The building permit fee is calculated at $8.50 per $1,000 of construction value. If the project value is $2,400,000, what is the building permit fee?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass