ASTM E2168-06
(Classification)Standard Classification for Allowance, Contingency and Reserve Sums in Building Construction Estimating
Standard Classification for Allowance, Contingency and Reserve Sums in Building Construction Estimating
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 E 1557. Rather, the classification items are cost components common to construction, project, and program estimates.
General Information
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Standards Content (Sample)
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Designation: E2168 – 06
Standard Classification for
Allowance, Contingency and Reserve Sums in Building
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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.Anumber 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
1.1 This classification establishes a classification for allow- 3.1 Definitions—For definitions of terms used in this clas-
ance, contingency, and reserve sums used in construction, sification, refer to Terminologies E631 and E883.
project, and program estimating.
4. Significance and Use
1.2 This classification applies to all construction work.
1.3 This classification is not based on permanent physical 4.1 When preparing construction, project, and program cost
estimates, it is often necessary to make monetary provision for
elements of construction (as defined and classified in Classifi-
cation E1557. Rather, the classification items are cost compo- change and/or risk or other exigencies where information is
incomplete.
nentscommontoconstruction,project,andprogramestimates.
4.2 Such allowance, contingency or reserve sums are em-
2. Referenced Documents
ployedbymanypersonsengagedintheplanning,delivery,and
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2.1 ASTM Standards: financing of construction work.
E631 Terminology of Building Constructions 4.3 These users include owners, developers, facilities pro-
E883 Guide for Reflected−Light Photomicrography grammers, cost planners, estimators, schedules, architects and
E1557 Classification for Building Elements and Related engineers, specification writers, operating and maintenance
Sitework—UNIFORMAT II staff, manufacturers, educators, financial managers, and comp-
E1804 PracticeforPerformingandReportingCostAnalysis trollers.
During the Design Phase of a Project 4.4 Usage:
E1946 Practice for Measuring Cost Risk of Buildings and 4.4.1 These sums are especially appropriate when perform-
Building Systems ing the following activities:
Cost budgeting,
Conceptual, design and construction cost estimating,
Preparing complete forecast cost for economic evaluation, invest-
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This classification is under the jurisdiction of ASTM Committee E06 on ment analysis and approval,
Controlling cost during planning, design and construction.
Performance of Buildings and is the direct responsibility of Subcommittee E06.81
on Building Economics.
4.4.2 In any of these activities a needed requirement, or
Current edition approved Sept. 1, 2006. Published September 2006. Originally
component, of the planned construction can be known while
approved in 2001. Last previous edition approved in 2001 as E2168–01. DOI:
10.1520/E2168-06.
the defined solution, design or specification, for providing this
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For referenced ASTM standards, visit the ASTM website, www.astm.org, or
may not. The usual, and appropriate, response in these situa-
contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
tions,istheinclusionofamonetarysum,withinanestimate,to
Standards volume information, refer to the standard’s Document Summary page on
the ASTM website. provide for this (these) requirement(s).
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
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E2168 – 06
4.4.3 Suchsumsmaybegeneralorspecificinscope,maybe ensure that a financial buffer is available within a budget.
planned to be spent or may only be included as possible Contingencies assist in mitigating the effects of unplanned
mitigation for unplanned events and requirements. events and other risks that are external to, and are not directly
4.4.4 To distinguish between these sums, and in recognition controllable within, a project plan.
of their differing purpose, they are described, and classified 5.2.3 Reserve—Asum,usuallyheldbymanagement(client)
here, using the terms allowance, contingency or reserve. to be disbursed only when project requirements are changed.
Used to provide insurance against a project or program failing
NOTE 1—Section 5 includes a generic statement of purpose for each of
tocompleteonbudgetorfortherevisionofabudgetinthecase
the three terms and provides a sub-classifi
...
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