Designation:E2168−10StandardClassificationforAllowance,Contingency,andReserveSumsinBuildingConstructionEstimating1ThisstandardisissuedunderthefixeddesignationE2168;thenumberimmediatelyfollowingthedesignationindicatestheyearoforiginaladoptionor,inthecaseofrevision,theyearoflastrevision.Anumberinparenthesesindicatestheyearoflastreapproval.Asuperscriptepsilon(´)indicatesaneditorialchangesincethelastrevisionorreapproval.INTRODUCTIONInbuildingconstructionestimatingthetermsallowance,contingency,andreserveareoftenusedalmostinterchangeablyandareassumedtobeuniversallyunderstood,yettheyoftenmeandifferentthingstodifferentpeople.Consequentlytheycanbeambiguousinmeaningandintent.Applyingtheseterms,asclassifiedherein,addsaneededprecisionandrigorintheiruseaseachtermisheldtobespecificinitsmeaning,intent,anduse.1.Scope1.1Thisclassificationestablishesaclassificationforallowance,contingency,andreservesumsusedinconstruction,project,andprogramestimating.1.2Thisclassificationappliestoallconstructionwork.1.3Thisclassificationisnotbasedonpermanentphysicalelementsofconstruction(asdefinedandclassifiedinClassifi-cationE1557).Rather,theclassificationitemsarecostcompo-nentscommontoconstruction,project,andprogramestimates.2.ReferencedDocuments2.1ASTMStandards:2E631TerminologyofBuildingConstructionsE833TerminologyofBuildingEconomicsE1557ClassificationforBuildingElementsandRelatedSitework—UNIFORMATIIE1804PracticeforPerformingandReportingCostAnalysisDuringtheDesignPhaseofaProjectE1946PracticeforMeasuringCostRiskofBuildingsandBuildingSystemsandOtherConstructedProjectsE2013PracticeforConstructingFASTDiagramsandPer-formingFunctionAnalysisDuringValueAnalysisStudy3.Terminology3.1Definitions—Fordefinitionsoftermsusedinthisclassification,refertoTerminologiesE631andE833.4.SignificanceandUse4.1Whenpreparingconstruction,project,andprogramcostestimates,itisoftennecessarytomakemonetaryprovisionforchangeorrisk,orboth,orotherexigencieswhereinformationisincomplete.4.2Suchallowance,contingencyorreservesumsar...
