Question

For international events, it is considered wise to add a contingency factor of _______ over the basic cost estimates in order to cover currency fluctuations if services need to be contracted using the local currency.

Answer 1

Answer: 10-20%

Explanation: A contingency factor is anything you can't predict accurately or forecast in the future. In order to cover currency fluctuations when services are done in local currency, contingency cost of 10-20% over basic cost estimate is advisable.