New Launch - India Real Estate Report 2026.

What is a Construction Contingency Budget?

A construction contingency budget is allocated reserve fund set aside for unexpected costs during construction including price increases, design changes, unforeseen conditions, or delays, typically 5-10% of total project cost, protecting against overruns and ensuring project completion.

Comprehensive Definition and Purpose

  • Allocated reserve fund
  • Unexpected costs covered
  • Price increases design changes
  • Unforeseen conditions delays

Percentage and Protection

  • 5-10% typically
  • Total project cost
  • Protects overruns
  • Ensures completion

Contingency budgets are reserve funds for unexpected construction costs including price increases, changes, conditions, delays typically 5-10% protecting overruns.

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