Construction contingency is the financial buffer that keeps your project alive when the unexpected hits. In this episode, we break down what contingency means in construction, the different types every project team member carries, and how contingency percentages change across project phases.

You'll learn the critical difference between a contingency and an allowance, why owners, architects, and contractors all need their own contingency reserves, and the golden rule that determines how much contingency your project actually needs.

We also cover hard cost vs soft cost contingency, schedule contingency, and a real story about doing a cost estimate in 20 minutes for a politician.

📝 Key Topics Covered:

• Construction contingency types: owner, design, contractor, subcontractor

• Construction contingency percentage by project phase

• Contingency vs allowance in construction budgeting

• Hard cost contingency vs soft cost contingency

• How to determine the right contingency for your project

• Construction contingency and the ARE exam

⏱️ Chapters:

(0:00) Introduction

(0:58) Why Something Always Goes Wrong

(2:04) What Is Construction Contingency

(2:34) Road Trip Contingency Analogy

(3:20) Time and Schedule Contingency

(4:33) How to Plan for the Unknown

(5:02) Contingency Decreases Over Time

(5:33) 20-Minute Cost Estimate Story

(7:05) Who Carries the Contingency

(8:32) How Much Contingency Is Enough

(8:58) Risk Identification and Tracking

(10:27) Key Takeaways

📖 Read the full blog post and download free study notes: Construction Contingency: Types, Percentages, and How It Works

📝 Download FREE Construction Contingency Study Notes: Free Construction Contingency Notes

🎯 Get access to all ARE Study Materials with the ARE 101 Membership: ARE 101 Membership

🎯 Join the next ARE Boot Camp cohort: ARE Boot Camp

📚 Individual ARE Exam Courses:

• PcM 101 (Practice Management)

• PjM 101 (Project Management)

• CE 101 (Construction and Evaluation)

• PA 101 (Programming and Analysis)

• PPD 101 (Project Planning and Design)

• PDD 101 (Construction Documents and Specs)

• AIA Contracts 101

• Building Codes 101

• Building Systems 101

• CDT 101 (Construction Documents Technologist)

• CCCA 101 (Construction Contract Administration)