A complete walk through with designers, engineers, architects, and contractors is a good first step. Preconstruction services and planning will help minimize your risks. By identifying risks, like weather and scheduling, you will get a better idea where the contingency budget might go, which will give you an idea of how much you might need. ![]() Part of determining contingency is planning for the worst. If issues arise, having budgeting issues could delay the whole project, and prevent work from being completed. However, it is often a bad idea to use a rate less than that, depending on the scale of the project. Typically that will cover any extra costs that might come up. Most construction projects use a rate of 5%-10% from the total budget to determine contingency. This money is on reserve and not allocated to one area of the work, and simply “insurance” against other costs. What is a contingency budget?Ī contingency budget is money set aside to cover unexpected costs during the construction process. This is where a contingency budget becomes critical. However, there is often times unforeseen issues, or items that come up where additional work will be needed. ![]() Setting a plan for where to spend the money, and budgeting for all the work takes both attention to detail and a complete scope of the project. When planning your construction project, establishing a budget is one of the first steps in planning a successful project.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |