A Contingency Rate of 10% on a Building Project Budgeted

question 70

Multiple Choice

A contingency rate of 10% on a building project budgeted at $20 million means:

• A) the project organization is hoping to bring the project in for around $22 million.
• B) the project organization is hoping to bring the project in for around $2 million.
• C) the project organization is hoping to bring the project in for around $18 million.
• D) the project organization is hoping to bring the project in for around $200 million.

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Definitions:

Communication Means

Various methods or systems used to convey information or messages from one person or entity to another.

Binding Contract

An agreement legally recognized and enforceable by law.

Essential Terms

Key conditions or terms in a contract that are crucial to the agreement’s operation and must be clearly defined and agreed upon by all parties involved.

Date Of Completion

The specified date when the parties to a contract agree that a project or work must be finished.