Design Contingency Burn Calculator

Design contingency absorbs scope creep.

Total hard cost

Design contingency %

% consumed

% complete

Remaining contingency

$660,000

Burn ratio (consumed / complete)

1.13

Projected final consumption

How the math works

Total contingency = hard × %. Consumed = total × %. Burn ratio = consumed % / complete %.

$30M × 4% = $1.2M contingency. 45% consumed = $540k used. 1.13 burn ratio → 113% projected final — over budget.

How to Use

Enter total project hard cost.
Enter design contingency %.
Enter % consumed.
Enter % complete.
Read remaining contingency and risk.

Frequently Asked Questions

Design contingency?

Owner's reserve for design evolution during construction (typically 2-5% of hard cost). Different from construction contingency (for unknown field conditions, 3-5%). Spent on drawings refinements, value engineering, owner changes.

Healthy burn?

Consumption should roughly track project progress. 25% complete → 25% contingency consumed. Faster burn = scope creep. Slower = conservative design. Ideal completion with 10-30% remaining contingency as cushion.

Over-budget signals?

Consumed faster than complete by 2x: alarming. Consumed near 100% at 50% complete: crisis. Response: tighten change control, VE review, scope reduction. Never let contingency hit zero mid-project without urgent action.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.