The Importance of Having a Contingency

So often when I ask homeowners if they have a contingency amount they look at me blankly. 

Building projects often have problems  coming out of the ground. The ground conditions can vary and the builder may encounter rock or issues with water, soft spots or as I found recently a site filled with old brick rubble tucked in nicely under the original house slab. 

Although the soil report can often identify fill or perched water tables the extent is unknown until excavation commences. 

These conditions will result in a cost variation for the owner,  then its necessary to have a contingency sum in your budget to cover these items. In the case of the site filled with rubble there will be additional cost for the engineer to review and redesign, additional cost for excavation and backfill with a suitable clay material and costs associated with this stage of the project taking longer. 

 We recommend owners have at least an amount equal to 10% of the contract price set aside as a contingency.  If it is not devoured early in the project then it could be used for landscaping works at the end. 

Its important to understand the risk profile on your site and Buildwise can assist with reviewing

Your plans and specifications before the project commences on site.