Three reasons you need a contingency in your building budget

Before building, you need to carefully plan your finances. and you always need a contingency in your building budget. A contingency is an extra sum of money that you put aside on top of the money you’ve budgeted for your build. It gives you the chance to deal with unforeseen issues that crop up during your build without having to scrabble around for extra funds. It also gives you the chance to change your mind about something during the project.

Your contingency should be around 10 – 15% of your overall budget. And, of course, if you end up not needing it you can either put it back into your savings or spend it on something nice.

Three reasons you might need a contingency in your building budget

Unexpected extra work

Sometimes despite the best planning, unexpected extra work comes up during new builds or renovations. This might include extra earthworks during foundation works for new builds. If you are renovating you might need remedial work to deal with issues like mould, rotten timber or asbestos. You might also need to fix sub-standard work by previous contractors. It might also include extra work redrawing plans or getting additional permissions from the council.

Material changes

If your original choice of materials becomes unavailable you may not be able to avoid incurring extra costs to purchase alternatives. Extra costs may also arise from needing more of a certain material or because the original choice is found not to be suitable once building starts. Or you may simply change your mind as part of the design process.

Problems with the timeframes

While most experienced builders will be good estimators of timeframes sometimes building work just takes longer than expected. This might be due to extra unforeseen work or weather-related delays. In these cases, you might incur extra costs due to having to pay the contractors for longer. You may also need to pay for temporary accommodation for longer.

Having a contingency in your building budget can help you deal with any of these issues without worrying about where the extra money will come from. Having the money already set aside will also help keep the project on track when it comes to timeframes.

Build Right can help you price accurately for your building project

At Build Right Contractors we’ve been working on home renovations and new builds across Central and East Auckland for more than a decade. Our experience helps us accurately cost projects whether you are building new or budgeting for renovations. We can advise on the appropriate budget and building a contingency in your building budget.

We provide detailed quotations so you know exactly where your money is going. When you are comparing builder quotes be sure to look carefully at what’s being offered in the package and don’t necessarily always go for the cheapest. We work closely with a trusted network of suppliers and subcontractors to ensure the most competitive price.

Ready to get started on your build or renovations? Call us to arrange a quote.

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No matter what type of residential or commercial building project you have in mind, we have the knowledge and expertise to make it a reality. From new homes, house extensions and renovations to significant upgrades to Daycare Centre and Community Projects, we offer a full range of building services.