Setting Your Contingency

What contingency means, recommended percentages, and how to track usage.

What is Contingency?

Contingency is a budget buffer — money set aside for unexpected costs that inevitably arise during construction. Think of it as your financial safety net.

How Much Contingency?

• **First-time owner-builders**: 15-20% of total construction cost
• **Experienced builders**: 10-15%
• **Simple renovations**: 10%

Common Unexpected Costs

• Rock or poor soil discovered during excavation
• Material price increases between bid and purchase
• Code changes requiring additional work
• Design changes requested by you or your spouse
• Weather-related delays adding to labor costs

Tracking Contingency

OwnerDraw tracks your contingency usage automatically. When you log an expense against a contingency line item, you can see how much of your buffer remains.

> TIP: Never touch your contingency for upgrades or "nice to haves." It exists for genuine unexpected costs. If you want to upgrade finishes, create a change order and find the money elsewhere in your budget.