TOTAL PROJECT COST

GROUP 9
C
O
M
P
O
N
E
N
T
S
C
O
M
P PROFFESIONAL
O
N ENGINEERING
E COST
N
T
S
C
O
M
P
O CONSTRUCTION
N COST
E
N
T
S
C
O
M LEGAL, LAND,
P
O ADMINISTRATION
N , STAFFING AND
E FINANCIAL COSTS
N
T
S
C
O
M
P
O CONTINGENCY
N ALLOWANCE
E
N
T
S
C LEGAL, LAND, ADMINISTRATION,
O STAFFING AND FINANCIAL COSTS

M
P
O
 Part of the probable total cost
N  Estimated in coordination with
E the client
N
T
S
C LEGAL, LAND, ADMINISTRATION,
O STAFFING AND FINANCIAL COSTS

M
P
EXAMPLE:
O  Legal fees
N  Real estate and land acquisition fees

E  Building permit review fees

 Printing (construction documents and spec books)
N
T
S
C CONTINGENCY ALLOWANCE
O
M
P
 vital part of construction project
O planning and budgeting
N  Amount of money that is set aside in
the project budget or plan to cover
E unexpected events or costs that may
N occur during the project.
T
S
C CONTINGENCY ALLOWANCE
O
M
P
 Intended to help account for inherent
O uncertainty and risks that are
N associated with any project or
undertaking.
E
N
T
S
C CONTINGENCY ALLOWANCE
O
M
PURPOSE:
P i. Mitigate the risk of unexpected costs
O ii. To provide safety net in case of
unforeseen events (weather,
N unexpected site conditions, cost
E overruns on material and labor)
N iii. Help ensure that your project is
completed successfully without
T budget overruns
S
C CONTINGENCY ALLOWANCE
O
M Common method to calculate is to allocate
percentage of the total budget or estimated
P costs.
O Example:
5-10% for low-risk project
N 20% or more for high-risk project
E Estimated cost Contingency allowance

N
P100,000 x 10% = P10,000
T P100,000 + P10,000 = P110,000 (total budget)
S
C CONTINGENCY ALLOWANCE
O
M  helps manage the risk of unexpected
P costs and keep the project moving
O forward, even when things don't go
N exactly as planned.
 if not consumed, it can be used for
E other parts of the project or give it back
N to the project owner.
T
S
QUIZ
QUIZ:

1. It is part of the probable total cost.

2. It is estimated in coordination with the client
3-6 give four examples of legal, land, administration,
staffing and financial costs.
7. It is vital part of construction project planning and
budgeting.
QUIZ:

8. It is the amount of money that is set aside in the project

budget or plan.
9. It help ensure that your project is completed
successfully without budget runouts.
10. It helps manage the risk of unexpected costs and keep
the project moving forward, even when things don't go
exactly as planned.