What range does CM typically use for design contingency in project budgets?

What range does CM typically use for design contingency in project budgets?

• A. 10 to 50 percent
• B. 10 to 25 percent
• C. 15 to 25 percent
• D. 15 to 50 percent

Answer: (C)

Design contingency is a budget cushion set aside during the design phase to absorb unknowns, changes, and surprises that often arise as the project scope and details are developed. In CMAA practice, the amount allocated for this cushion typically falls in the 15 to 25 percent range of the design budget. This level reflects the reality that early design work carries significant uncertainty—things like scope refinement, coordination between disciplines, constructability considerations, and potential client-driven changes can all surface as plans become more detailed. By budgeting within this range, the team guards against delays and cost overruns without locking in excessive funds that aren’t yet warranted. It’s important to distinguish design contingency from construction contingency. The design contingency helps cover design-phase risks, while the construction contingency addresses risks that appear during construction. Other ranges, such as 10–25 or up to 50 percent, either understate typical design risk on many projects or overestimate the cushion, respectively, which is why the 15 to 25 percent window is the preferred CMAA guidance.

Design contingency is a budget cushion set aside during the design phase to absorb unknowns, changes, and surprises that often arise as the project scope and details are developed. In CMAA practice, the amount allocated for this cushion typically falls in the 15 to 25 percent range of the design budget. This level reflects the reality that early design work carries significant uncertainty—things like scope refinement, coordination between disciplines, constructability considerations, and potential client-driven changes can all surface as plans become more detailed. By budgeting within this range, the team guards against delays and cost overruns without locking in excessive funds that aren’t yet warranted.

It’s important to distinguish design contingency from construction contingency. The design contingency helps cover design-phase risks, while the construction contingency addresses risks that appear during construction. Other ranges, such as 10–25 or up to 50 percent, either understate typical design risk on many projects or overestimate the cushion, respectively, which is why the 15 to 25 percent window is the preferred CMAA guidance.