A contingency rate of 10% on a building project budgeted at $20 million means the project organization is hoping to bring the project in for around:
A) $22 million.
B) $2 million.
C) $18 million.
D) $200 million.

Question

Quizplus · Accepted Answer

A contingency rate of 10% means that the project organization is hoping to bring the project in for 10% less than the budgeted amount. 10% of $20 million is $2 million, so the project organization is hoping to bring the project in for around $20 million - $2 million = $18 million.

A Contingency Rate of 10% on a Building Project Budgeted