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8.2.3 Contingency Costs
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8.2.3 Contingency Costs

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Contingency costs are assigned to cover any unanticipated or unplanned expenses that may arise during the project planning and implementation periods. For example, unforeseen site conditions, such as difficult terrain or soil conditions may require alternative construction methods and change orders to construct the project as designed. Another example may be the modification of the engineering plans to incorporate mistakenly omitted components. Such cases may increase the final construction costs of the project. Typically, a contingency fund/reserve of approximately 10% to 15% of the project costs should be set aside to draw on, as necessary, to cover unforeseen expenses.

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