Project Delivery Practice Test

The inclusion of a design phase contingency in an estimator's estimate serves as a proactive measure to address uncertainties and details that have not yet been finalized in the contract. This type of contingency is specifically designed to allocate funds for potential additional costs that may arise from design changes or enhancements that typically occur during the development of a project. These uncertainties can stem from incomplete designs, evolving project requirements, or unforeseen challenges that may not be identifiable during the initial phases of estimating.

By incorporating a design phase contingency, the estimator creates a financial buffer that allows the project to adapt as more detailed information becomes available. This practice ensures that the project remains funded adequately while minimizing the risks associated with cost overruns that could arise from late-stage design modifications. In contrast, other options, while relevant in different contexts, do not specifically address the uncertainty tied to "yet-to-be-detailed" portions of a contract.