At the ________ estimate stage, the design contingency is generally the ________.

At the ________ estimate stage, the design contingency is generally the ________.

• A. Conceptual, Highest
• B. Design Development, High
• C. Preliminary, Low
• D. Detailed, Very High

Answer: (A)

The main idea is that early estimates carry the most uncertainty, so the design contingency is the largest when the design is still in its conceptual stage. At this point, the project scope, methods, and costs aren’t well defined, and many unknowns can drive cost changes. As the design progresses through preliminary and design development, more details are resolved, reducing uncertainty, so contingency can be lowered. By the time you reach detailed design, the estimate is more precise and the need for a large design contingency diminishes. That’s why the conceptual stage paired with the highest contingency is the best choice.

The main idea is that early estimates carry the most uncertainty, so the design contingency is the largest when the design is still in its conceptual stage. At this point, the project scope, methods, and costs aren’t well defined, and many unknowns can drive cost changes. As the design progresses through preliminary and design development, more details are resolved, reducing uncertainty, so contingency can be lowered. By the time you reach detailed design, the estimate is more precise and the need for a large design contingency diminishes. That’s why the conceptual stage paired with the highest contingency is the best choice.