ASTM E2168-10

Standard Classification for Allowance, Contingency and Reserve Sums in Building Construction Estimating

SIGNIFICANCE AND USE
When preparing construction, project, and program cost estimates, it is often necessary to make monetary provision for change or risk, or both, or other exigencies where information is incomplete.
Such allowance, contingency or reserve sums are employed by many persons engaged in the planning, delivery, and financing of construction work.
These users include owners, developers, facilities programmers, cost planners, estimators, schedules, architects and engineers, specification writers, operating and maintenance staff, manufacturers, educators, financial managers, and comptrollers.
SCOPE
1.1 This classification establishes a classification for allowance, contingency, and reserve sums used in construction, project, and program estimating.
1.2 This classification applies to all construction work.
1.3 This classification is not based on permanent physical elements of construction (as defined and classified in Classification E1557). Rather, the classification items are cost components common to construction, project, and program estimates.

General Information

• Status: Historical
• Publication Date: 30-Apr-2010
• ICS: 91.010.20 - Contractual aspects
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E2168-06 - Standard Classification for Allowance, Contingency and Reserve Sums in Building Construction Estimating
• Effective Date: 01-May-2010
• Referred By: ASTM E2620-15(2020) - Standard Classification for Program and Project Estimate Summaries
• Effective Date: 01-May-2010
• Referred By: ASTM E2514-15(2020) - Standard Practice for Presentation Format of Elemental Cost Estimates, Summaries, and Analyses
• Effective Date: 01-May-2010
• Referred By: ASTM E1557-09(2020)e1 - Standard Classification for Building Elements and Related Sitework—UNIFORMAT II
• Effective Date: 01-May-2010
• Referred By: ASTM E3008/E3008M-16(2023) - Standard Classification for Transportation Surface Elements—UNIFORMAT II
• Effective Date: 01-May-2010
• Referred By: ASTM E1946-18(2023) - Standard Practice for Measuring Cost Risk of Buildings and Building Systems and Other Constructed Projects
• Effective Date: 01-May-2010
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 01-May-2010
• Referred By: ASTM E2083-05(2016) - Standard Classification for Building Construction Field Requirements, and Office Overhead & Profit
• Effective Date: 01-May-2010

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation:E2168 −10
StandardClassification for
Allowance, Contingency, and Reserve Sums in Building
1
Construction Estimating
This standard is issued under the fixed designation E2168; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
In building construction estimating the terms allowance, contingency, and reserve are often used
almost interchangeably and are assumed to be universally understood, yet they often mean different
things to different people. Consequently they can be ambiguous in meaning and intent.
Applying these terms, as classified herein, adds a needed precision and rigor in their use as each
term is held to be specific in its meaning, intent, and use.
1. Scope 3. Terminology
3.1 Definitions—For definitions of terms used in this
1.1 This classification establishes a classification for
classification, refer to Terminologies E631 and E833.
allowance,contingency,andreservesumsusedinconstruction,
project, and program estimating.
4. Significance and Use
1.2 This classification applies to all construction work.
4.1 When preparing construction, project, and program cost
estimates, it is often necessary to make monetary provision for
1.3 This classification is not based on permanent physical
change or risk, or both, or other exigencies where information
elements of construction (as defined and classified in Classifi-
is incomplete.
cation E1557). Rather, the classification items are cost compo-
nents common to construction, project, and program estimates.
4.2 Such allowance, contingency or reserve sums are em-
ployed by many persons engaged in the planning, delivery, and
2. Referenced Documents
financing of construction work.
2
4.3 These users include owners, developers, facilities
2.1 ASTM Standards:
programmers, cost planners, estimators, schedules, architects
E631 Terminology of Building Constructions
andengineers,specificationwriters,operatingandmaintenance
E833 Terminology of Building Economics
staff, manufacturers, educators, financial managers, and comp-
E1557 Classification for Building Elements and Related
trollers.
Sitework—UNIFORMAT II
E1804 Practice for Performing and Reporting CostAnalysis
4.4 Usage:
During the Design Phase of a Project
4.4.1 These sums are especially appropriate when perform-
E1946 Practice for Measuring Cost Risk of Buildings and
ing the following activities:
Building Systems and Other Constructed Projects
Cost budgeting;
E2013 Practice for Constructing FAST Diagrams and Per- Conceptual, design, and construction cost estimating;
Preparing complete forecast cost for economic evaluation,
forming Function Analysis During Value Analysis Study
investment analysis, and approval; and
Controlling cost during planning, design, and construction.
4.4.2 In any of these activities a needed requirement, or
1
This classification is under the jurisdiction of ASTM Committee E06 on
component, of the planned construction can be known while
Performance of Buildings and is the direct responsibility of Subcommittee E06.81
the defined solution, design or specification, for providing this
on Building Economics.
may not. The usual, and appropriate, response in these
Current edition approved May 1, 2010. Published August 2010. Originally
situations, is the inclusion of a monetary sum, within an
approved in 2001. Last previous edition approved in 2006 as E2168 – 06. DOI:
10.1520/E2168-10.
estimate, to provide for this (these) requirement(s).
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
4.4.3 Suchsumsmaybegeneralorspecificinscope,maybe
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
planned to be spent or may only be included as possible
Standards volume information, refer to the standard’s Document Summary page on
the ASTM website. mitigation for unplanned events and requirements.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

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E2168−10
4.4.4 To distinguish between these sums, and in recognition events and other risks that are external to, and are not directly
of their differing purpose, they are described, and classified controllable within, a project plan.
here, using the terms allowance, contingency, or reserve.
5.2.3 Reserve—Asum, usually held by management (client)
to be disbursed only when project requirements are changed.
NOTE 1—Section 5 includes a generic statement of purpose for each of
Used to provide insurance against a project or program failing
the three terms and provides a sub-classification that dist
...

This document is not anASTM standard and is intended only to provide the user of anASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation:E2168–06 Designation: E2168 – 10
Standard Classification for
Allowance, Contingency, and Reserve Sums in Building
1
Construction Estimating
This standard is issued under the fixed designation E2168; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
In building construction estimating the terms allowance, contingency, and reserve are often used
almost interchangeably and are assumed to be universally understood, yet they often mean different
things to different people. Consequently they can be ambiguous in meaning and intent.
Applying these terms, as classified herein, adds a needed precision and rigor in their use as each
term is held to be specific in its meaning, intent, and use.
1. Scope
1.1 Thisclassificationestablishesaclassificationforallowance,contingency,andreservesumsusedinconstruction,project,and
program estimating.
1.2 This classification applies to all construction work.
1.3 This classification is not based on permanent physical elements of construction (as defined and classified in Classification
E1557). Rather, the classification items are cost components common to construction, project, and program estimates.
2. Referenced Documents
2
2.1 ASTM Standards:
E631 Terminology of Building Constructions
E883Guide for ReflectedLight Photomicrography 833 Terminology of Building Economics
E1557 Classification for Building Elements and Related SiteworkUNIFORMAT II
E1804 Practice for Performing and Reporting Cost Analysis During the Design Phase of a Project
E1946 Practice for Measuring Cost Risk of Buildings and Building Systems Practice for Measuring Cost Risk of Buildings and
Building Systems
E2013 Practice for Constructing FAST Diagrams and Performing Function Analysis During Value Analysis Study
3. Terminology
3.1 Definitions—For definitions of terms used in this classification, refer to Terminologies E631 and E883E833.
4. Significance and Use
4.1 When preparing construction, project, and program cost estimates, it is often necessary to make monetary provision for
change and/or riskor risk, or both, or other exigencies where information is incomplete.
4.2 Such allowance, contingency or reserve sums are employed by many persons engaged in the planning, delivery, and
financing of construction work.
4.3 These users include owners, developers, facilities programmers, cost planners, estimators, schedules, architects and
engineers, specification writers, operating and maintenance staff, manufacturers, educators, financial managers, and comptrollers.
4.4 Usage:
4.4.1 These sums are especially appropriate when performing the following activities:
Cost budgeting,
1
This classification is under the jurisdiction ofASTM Committee E06 on Performance of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
Current edition approved Sept.May 1, 2006.2010. Published September 2006.August 2010. Originally approved in 2001. Last previous edition approved in 20012006 as
E2168 – 016. DOI: 10.1520/E2168-106.
2
For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
E2168 – 10
Cost budgeting;
Conceptual,
design and
construction
cost estimating,
Conceptual,
design, and
construction
cost estimating;
Preparing com-
plete forecast
cost for eco-
nomic evalua-
tion, investment
analysis and
approval,
Preparing com-
plete forecast
cost for eco-
nomic evalua-
tion,
investment
analysis, and
approval; and
Controlling cost
during plan-
ning, design
and construc-
tion.
Controlling cost
during plan-
ning, design,
and construc-
tion.
4.4.2 Inanyoftheseactivitiesaneededrequirement,orcomponent,oftheplannedconstructioncanbeknownwhilethedefined
solution, design or specification, for providing this may not. The usual, and appropriate, response in these situations, is the
inclusion of a monetary sum, within an estimate, to provide for this (these) requirement(s).
4.4.3 Such sums may be general or specific in scope, may be planned to be spent or may only be included as possi
...