Appropriate budget contingency determination for construction projects: State-of-the-art
Contingency is a critical component in the cost estimation process for any construction project. The contingency reserve considers potential costs related to risks and uncertainties associated with construction projects. It is usually assumed to damp any resulting uncertain monetary impact and to pr...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-09-01
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| Series: | Alexandria Engineering Journal |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1110016823006178 |
| _version_ | 1797736894019141632 |
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| author | Taher Ammar Mohamed Abdel-Monem Karim El-Dash |
| author_facet | Taher Ammar Mohamed Abdel-Monem Karim El-Dash |
| author_sort | Taher Ammar |
| collection | DOAJ |
| description | Contingency is a critical component in the cost estimation process for any construction project. The contingency reserve considers potential costs related to risks and uncertainties associated with construction projects. It is usually assumed to damp any resulting uncertain monetary impact and to prevent project cost overrun. Many contingency calculation methods for construction projects proposed in literature ranged from simple percentage to complex mathematical methods. Deciding the optimum contingency method for a given project at a given phase represents the main challenge in cost estimation process. This study presents a comprehensive compilation of all contingency calculation methods and divided them into three main groups: deterministic, probabilistic, and modern mathematical methods which have been discussed in details. Appropriate method for estimating contingency amount depends on many criteria such as project peculiarity, complexity, ease of method used, and the accuracy level of the estimates. This study proposed a practical guidance approach for construction agencies to choose their appropriate cost contingency method.This research is expected to help agencies/owners in the budget development stage to allocate a contingency budget for their construction projects. |
| first_indexed | 2024-03-12T13:19:58Z |
| format | Article |
| id | doaj.art-fc93dde3b9364432abea33c7110b92f7 |
| institution | Directory Open Access Journal |
| issn | 1110-0168 |
| language | English |
| last_indexed | 2024-03-12T13:19:58Z |
| publishDate | 2023-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Alexandria Engineering Journal |
| spelling | doaj.art-fc93dde3b9364432abea33c7110b92f72023-08-26T04:42:54ZengElsevierAlexandria Engineering Journal1110-01682023-09-017888103Appropriate budget contingency determination for construction projects: State-of-the-artTaher Ammar0Mohamed Abdel-Monem1Karim El-Dash2Corresponding author.; Faculty of Engineering at Shoubra, Benha University, Postcode 11629, EgyptFaculty of Engineering at Shoubra, Benha University, Postcode 11629, EgyptFaculty of Engineering at Shoubra, Benha University, Postcode 11629, EgyptContingency is a critical component in the cost estimation process for any construction project. The contingency reserve considers potential costs related to risks and uncertainties associated with construction projects. It is usually assumed to damp any resulting uncertain monetary impact and to prevent project cost overrun. Many contingency calculation methods for construction projects proposed in literature ranged from simple percentage to complex mathematical methods. Deciding the optimum contingency method for a given project at a given phase represents the main challenge in cost estimation process. This study presents a comprehensive compilation of all contingency calculation methods and divided them into three main groups: deterministic, probabilistic, and modern mathematical methods which have been discussed in details. Appropriate method for estimating contingency amount depends on many criteria such as project peculiarity, complexity, ease of method used, and the accuracy level of the estimates. This study proposed a practical guidance approach for construction agencies to choose their appropriate cost contingency method.This research is expected to help agencies/owners in the budget development stage to allocate a contingency budget for their construction projects.http://www.sciencedirect.com/science/article/pii/S1110016823006178Construction projectCost estimationCost contingencyEstimation method |
| spellingShingle | Taher Ammar Mohamed Abdel-Monem Karim El-Dash Appropriate budget contingency determination for construction projects: State-of-the-art Alexandria Engineering Journal Construction project Cost estimation Cost contingency Estimation method |
| title | Appropriate budget contingency determination for construction projects: State-of-the-art |
| title_full | Appropriate budget contingency determination for construction projects: State-of-the-art |
| title_fullStr | Appropriate budget contingency determination for construction projects: State-of-the-art |
| title_full_unstemmed | Appropriate budget contingency determination for construction projects: State-of-the-art |
| title_short | Appropriate budget contingency determination for construction projects: State-of-the-art |
| title_sort | appropriate budget contingency determination for construction projects state of the art |
| topic | Construction project Cost estimation Cost contingency Estimation method |
| url | http://www.sciencedirect.com/science/article/pii/S1110016823006178 |
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