CONTINGENCIES
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Those future events which is possible (in future) but can not be predicted with certainty. A certain amount of money is provided for this indefinite and un-predicted expenditure.
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| EXTRA MONEY FOR CONTINGENCIES |
- During estimation, the amount is provided to cover the unpredicted expenditures by an extra cost on account of delay in delivery, minor accidents and unpredicted variations from the estimating department.
- The amount to be provided is too variable and depends upon the exactness of the specifications.
- The looser the specification the more doubtful the conditions in which it will be carried out and greater the risk of delays and difficulties and of the need of exceptional measures such as overtime, the greater obviously must be the allowances to cover them.
- The contingencies, fully compensate additional material cost, labour cost and other aligned expensive which could not counted for. Such expensives may be natural calamities ( hail storm, flood, earthquake, storm) pr may be artificial ( gas tragedy).
keywords:- CONTINGENCIES, contingencies, main components of estimating, determine the cost of labour, electrical estimating.
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