I’m working on the budget for a project in to $250k to $300k range. Involves small addition, bathroom extension – both parts inloving new foundation work. large deck as well sunken hot tub in concrete structure in ground, with grade level deck or slab and large Cedar arbor over top. Also rooflines reworked in front of house as well as new landscaping to complete the project.
I’m wondering what kind of contingecny fund I should allow for in the budget. Not sure exactly what things I should be considering, but thougt there might be a percentage of cost that is sometimes used, with variables of the project considered to make any adjustments.
Thanks for any input – Dave
Edited 7/10/2008 9:44 am by alrightythen
Replies
I always tried to set 5% of the total estimate as the contingency fund.
what about a consideration for cost overuns? should I include that, or have a separate allowance for certain things that are hard to budget and may run over? View Image View Image
I'd have a seperate allowance for things that are hard to budget (like if it were a whole house, I'd be talking about kitchen cabinets here) and then have a contigency fund of maybe 5%.Runnerguy
Thanks...kind of what I'm thinking. View Image View Image
There re probably as many ways to handle these issues as there are posters here. When I was doing one-of-a-kind homes I always put light fixtures, floor coverings, and counter tops on an allowance. Also any real specialty items the client wanted to pick out.
Everything else was fixed if I could feel comfortable with the project.
contingency was for the inevitable "Dang,I forgot that!", or to cover those small unforeseen items. Large unforeseen's get change orders with the adjustment to contract cost.
They can't get your Goat if you don't tell them where it is hidden.
Thanks dovetail...yeah..I guess there are number of ways to handle it.
The job itself is being done as cost plus, but I do need to have a budget that we can go by. View Image View Image