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New Construction Contingency Calculator

New construction projects typically run 10-20% over budget. Contingency reserve covers cost overruns, change orders, schedule slippage, and surprise site conditions. This calculator sizes the reserve. Soil conditions are the biggest hidden cost. Percolation tests, soil bearing, and watertable levels determine foundation design. Bad soil can add $20K-$80K to foundation cost unexpectedly. Utility connection fees (sewer, water, gas, electric tap-ins) routinely add New construction projects typically run 10-20% over budget. Contingency reserve covers cost overruns, change orders, schedule slippage, and surprise site conditions. This calculator sizes the reserve.5K-$50K beyond what contractors estimate. Budget at least 10% contingency for these site-specific unknowns before any above-grade work begins.

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Recommended contingency reserve

$54,400

Cost overrun reserve

$48,000

Schedule slippage reserve

$6,400

Reserve as % of budget

13.6%

How the math works

$400K standard custom: 12% = $48K cost contingency + $6.4K schedule = $54.4K total. 13.6% of budget.

Most overruns come from change orders and surprise site conditions (bad soil, utility hookups). Minimize by freezing design before dig and insisting on fixed-price subcontractor contracts.

How to Use

  1. Enter base construction budget and expected build months.
  2. Enter your risk tolerance for cost overrun.
  3. See recommended contingency reserve.

Frequently Asked Questions

Typical contingency %?

10-15% on new custom builds. 7-10% on tract homes. 15-25% on complex sites (slope, unusual soil, historic). Start at 15% for most residential.

Who holds the contingency?

You do. Keep liquid in savings separate from construction loan draws. Lender includes contingency in approval but you control the discretionary spend.

If I don't need it?

Roll into furnishings, landscape, or pay down mortgage. Many builds use 50-80% of contingency; rarely 0% and rarely all of it.

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