How much should I allow as a contingency?
Everyone knows it – building a new home will always go over budget! But by how much, and how much should you allow as a contingency?
A contingency may be used for many things, such as any unforeseen, unplanned or unexpected events on site. Changes required due to Council inspection outcomes or other compliance items. Also as you progress through the design phase you might decide that you really do want to upgrade to that marble benchtop or the wool carpet, so having a contingency that is adequate will allow you to make those changes along the way.
A contingency should be proportionate to the overall budget. We recommend somewhere between 10% and 15% for most projects, depending on the work involved.
We estimate all known costs up front and provide you with a breakdown of your project budget. Having a contingency allows us to be honest and transparent about these known costs, rather than bumping them up to try and cover the unknowns, understanding that the contingency only gets spent if needed.
By not including a contingency you run the risk of delays, additional stress, or even not completing your project. Something none of us want to happen. Hence, we incorporate a sensible contingency amount into all Byrne Homes budgets.