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.

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.