How to Set a Project Contingency Budget.

Contingency should reflect design maturity, site uncertainty, procurement volatility, interface risk and project complexity. It is not a substitute for missing scope in the BOQ.

Track contingency usage separately so management can see why risk allowance is being consumed.

What to do next

Use the relevant PROJECTCHECK check or consultation for an initial review. For material commercial, structural or contractual decisions, use the appropriate professional service.