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A contingency budget in construction is a fund set aside to cover unexpected expenses or unforeseen circumstances that may arise during a project. This budget is essential because it helps manage risks, as construction projects are prone to unexpected issues, such as weather delays, material price fluctuations, or design errors. It ensures that unexpected expenses don't blow the project's budget, allowing projects to continue without significant delays or disruptions. Having a financial cushion
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Most Owners assume they get leftover contingency back at the end of a project. That is NOT a guarantee. Some contracts actually allow the contractor to keep leftover contingency — because they “managed the risk better.” Other contracts require leftover contingency to go back to the Owner. It all depends on what the contract says. The most expensive part of construction… is the assumption you don’t read your own contract. Www.capitalprojecttoolkit.com #construction #capitalprojecttoolkit #municip
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