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Discussion

Contingency differs from escalation in covering

  • A.uncertainty within the defined scope
  • B.price movements over the spending period
  • C.changes in the project's scope
  • D.the contractor's profit margin

Answer: A

It is the allowance for the estimate being imperfect at its own date: quantities slightly out, conditions slightly worse, details not yet designed. Scope changes are handled by re-estimating rather than by drawing on contingency, though in practice they often are.

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