Estimating Required Contingency Funds for Construction Projects Using Multple Linear Regression
Jason J Cook
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Estimating Required Contingency Funds for Construction Projects Using Multple Linear Regression

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Cost overruns are a critical problem for construction projects. The common practice for dealing with cost overruns is the assignment of an arbitrary flat percentage of the construction budget as a contingency fund. This research seeks to identify significant factors that may influence, or serve as indicators of, potential cost overruns. The study uses data on 243 construction projects over a full range of project types and scopes gathered from an existing United States Air Force construction database. The author uses multiple linear regression to analyze the data and compares the proposed mod...