Owner Contingency Calculator

Owner should budget contingency separate from GC's. This calculator sizes appropriate reserve.

Total project cost

Risk level (1-10)

GC contingency %

Owner contingency $

$784,000

Owner contingency %

11.2%

Total contingency

$1,064,000

How the math works

Recommended % scales with risk: 5% at minimum, up to 20% for high-risk adaptive reuse.

Most owners budget 2-3% owner contingency and routinely overrun. Budget honestly for the risk; it's easier to return unspent contingency than to raise more capital mid-project.

How to Use

Enter total project cost.
Enter project risk level.
Enter GC contingency %.
Read recommended owner contingency.

Frequently Asked Questions

GC vs owner contingency?

GC contingency: 3-5% for unforeseen in GC's scope. Owner contingency: 5-10% for owner-directed changes, scope additions, decisions. Different purposes.

When to tap?

Owner contingency for owner decisions: upgraded finishes, added scope, discovered code issues. Keep GC contingency sacred — not for owner whims.

Sizing by risk?

Low-risk rehab: 5-8%. Moderate new-build: 10-12%. Adaptive reuse/historic: 15-20%. Ground-up in unknown site: 15%+. Budget uncertainty directly.

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.