Which situation would typically justify the highest contingency percentage in a construction estimate?
Correct Answer
A) Renovation of a historic building with unknown conditions
Historic renovations involve the highest uncertainty due to unknown existing conditions, potential hazardous materials, structural issues, and code compliance requirements. This uncertainty justifies higher contingency percentages (15-25%).
Why This Is the Correct Answer
Historic building renovations present the highest level of uncertainty and risk in construction projects. These projects often involve unknown structural conditions, outdated building systems, potential asbestos or lead paint, and the challenge of bringing old structures up to current building codes. The unpredictable nature of what contractors will discover once work begins requires substantial financial protection through higher contingency percentages, typically ranging from 15-25% compared to 5-10% for standard new construction.
Why the Other Options Are Wrong
Option B: Construction during favorable weather seasons
Construction during favorable weather seasons reduces risk and uncertainty, allowing for lower contingency percentages due to predictable working conditions
Option C: Repeat construction of a previously built design
New construction on a clear, surveyed site represents low risk with predictable conditions, requiring only standard contingency percentages of 5-10%
Option D: New construction on a clear, surveyed site
Repeat construction of previously built designs involves minimal uncertainty since the scope, materials, and potential issues are already known from prior experience
Memory Technique
Think 'Historic = Hidden problems = Higher contingency' - the three H's help remember that historic renovations need the most financial protection
Reference Hint
Florida Building Code Chapter 1 - General Provisions, and construction estimating references covering contingency planning
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