Milestone cost estimates at various stages of the process are critical components of the cost management activity. Risk Assessment and Management are important as identi ed risks on construction projects are typically nancial in nature. Therefore early in the project an assessment of risk is crucial to establish the budget parameters within which the project must be completed. The calculation of project contingencies should be based on an assessment of the risk surrounding the project (site issues, availability of bidders, method of procurement, and critically the market conditions in the location of the project. As risks are mitigated then contingencies can be reduced and the range of estimated nal cost narrowed.