(b)

1. (1) It is recommended that all cost estimates for construction, all projected building costs, and all methods of finance include a contingency fund.
2. (2) Contingency funds should be used to offset inflation, unforeseen expenses, and/or cost overruns on construction projects.
3. (3) Items that may be covered by a contingency fund are unexpected utility work or relocation, damaged roof decking replacement, rock excavation, and the like.
4. (4) Contingency funding normally should not exceed ten percent (10%) and should depend on the cost and complexity of the project, with a proportionately smaller amount as project budgets increase.
5. (5) While five percent to ten percent (5% – 10%) may be necessary on low-cost projects, this percentage may be excessive on higher cost projects (one and one-half percent to two and one-half percent (1 1/2% – 2 1/2%) may be sufficient).
6. (6) Overall building budgets should be reviewed with the Design Review Section and the design professional chosen to perform the work.
7. (7) Contingency funds are not set up to cover the cost of errors in design and construction by the design professional or for lack of coordination on their part, which requires remedial work during completion of construction.