May 24, 20233 yr Many on here, often new members, ask about costs. This is not about this. This is for the battle scarred. When we see "+ contingency", do we really mean that should be added to the estimate as it will be spent? How many have built without spending the contingency, and how many have spent it and more? What did it add, as a percentage to the build price?
May 24, 20233 yr Our previous came in without using the 10 k contingency More by luck than design Foundations are the big unknown and 10 k can go in a blink of an eye We have 50 k contingency this time Hoping not to use it Our daughters friend is having a single story extension and kitchen 75k That’s gone up to 150 K
May 24, 20233 yr Author 3 minutes ago, nod said: Our daughters friend is having a single story extension and kitchen 75k That’s gone up to 150 K They will be spending the contingency then. Beans on toast for every meal is my money saving tip, could save them 150k today.
May 24, 20233 yr We didn't have a contingency. We had a budget based on expensive options for the build components and then adjusted how much money was later available by buying cheaper options. We came in on budget. Edited May 24, 20233 yr by Gone West
May 24, 20233 yr Author 19 minutes ago, Gone West said: We had a budget based on expensive options for the build components and then adjusted how much money was later available by buying cheaper options How big was the variation i.e. a 2k kitchen instead of a 12k one.
May 24, 20233 yr Author 7 minutes ago, Dave Jones said: 20% of build cost is prudent. Then why not just add that to the estimate and call it the budget. It is not compulsory to spend all the budget.
May 24, 20233 yr 1 hour ago, SteamyTea said: They will be spending the contingency then. Beans on toast for every meal is my money saving tip, could save them 150k today. They have expensive tastes Plus the builder put strip foundations in on a a three year old house that is piled Not rocket science
May 24, 20233 yr 23 minutes ago, SteamyTea said: Then why not just add that to the estimate and call it the budget. It is not compulsory to spend all the budget. because its unbudgeted hence contingency duuhh.
May 24, 20233 yr 2 hours ago, SteamyTea said: How big was the variation i.e. a 2k kitchen instead of a 12k one. The thing I remember most clearly was we budgeted £10k for the staircase and spent £3.5k but one of the quotes was £30k. The kitchen including appliances was £12.5k and we budgeted £14k. These prices were before VAT refund. This was some time ago so those prices probably seem cheap now.
May 24, 20233 yr Serious answer. Some perhaps is obvious...apologies. The more you know about what you are doing, the less contingency is needed. The only way i would allow zero would be for a fully detailed design, on known ground, with contractors on fixed prices. But that has costs in oher ways. In business i gave clients indicative prices based on a quick sketch and an hour estimating globally, and add 10%. But that include allowing lump sums for foreseen challenges. When it came to a fixed price I would have analysed it in detail, and costed every little thing. Then risk is based on gut feeling. Usually 5%, but sometimes 10% on the ground, 2% the structure, 5% the rest. In summary, even with the project being in my comfort zone it usually needed 5% for unforeseen conditions and surprises. This 5% was usually spent, either on external costs or internal management. As a contractor, adding too much loses the job. Adding too little loses money. Lose 5% and you are doing all that work for nothing. So it is not done lightly. Don't forget inflation. So, how certain are you? How do you know ? I'd say to add 10% unless you can tick off the uncertainties.
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