Fixed Equipment
This line item reflects all equipment attached to walls,ceilings, or floors of the building. This category would include floor, ceiling or wall-mounted medical equipment, head wall systems, security and surveillance systems, food service equipment, lighting systems, and other items that are attached to the building. The fixed equipment costs (line item C in Figure 1) can be estimated to be approximately 17% to 20% of the building cost (line item A in Figure 1).
Construction Contingency
Line item D is optional but strongly recommend by most architectural and contracting firms. The construction contingency is approximately 10% of the building cost and reflects a set-aside fund for any unforeseen situations that may arise during construction such as escalating costs of materials including steel, concrete, or other building materials. Other costs subject to escalation include contractor costs associated with staging areas for building or storage of equipment, cost of petroleum for trucks and equipment, shipping costs for materials or fixed equipment, increased labor costs due to labor shortages or new labor contracts, or delays due to extreme weather conditions.2 This contingency is particularly important in renovation projects where drawings of the existing facility may not be available or accurately reflect existing conditions.