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Construction Contingency Drawdown Calculator

Contingency drawdown pace signals risk.

$
$

Projected final drawdown

$1,710,000

Avg monthly burn

$95,000

Remaining at projected rate

$290,000

How the math works

Monthly burn = drawdown / months elapsed. Projected = burn × total months. Remaining = total − projected.

$950k / 10 = $95k/mo × 18 = $1.71M projected final. $290k remaining — healthy.

How to Use

  1. Enter total contingency.
  2. Enter months elapsed.
  3. Enter drawdown to date.
  4. Enter total months.
  5. Read drawdown rate and projection.

Frequently Asked Questions

Drawdown cadence?

Healthy drawdown follows S-curve: slow early, accelerates middle, levels late. Early burn 5-10% through month 3. Middle burn 50-70% through month 9 of 18. Late burn 80-95% through completion. Reserves 5-10% for final surprises.

Over-pace signals?

Drawdown >20% above project completion pace: red flag. Major discovery event early (soils, structural): absorb and adjust. Monthly trend monitoring catches slip before crisis. Lender monthly reporting requirement.

Under-pace caution?

Excessive caution can mean overlooked issues. Drawdown near zero at 40% complete = contingency may be released for owner. OR it may mean deferred billing that crashes in. Monitor why, not just what.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.

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