Why do rehab budgets always go over?

Hidden issues (plumbing, electrical, structural) discovered during work, material price changes, scope creep, and contractor delays all add to costs. Contingency buffers these surprises.

How to set contingency for older properties?

Properties 40+ years old with no recent renovation should use 25–30% contingency minimum. Pre-1978 properties add lead and asbestos testing costs.

What reduces contingency risk?

Professional inspection before purchase, experienced GC with fixed-price contracts, detailed SOW, and weekly budget tracking reduce surprises significantly.

Rehab Budget Contingency Percentage Calculator

Calculate recommended contingency reserves for rehab projects based on property age, condition, and scope. Light rehab: 10–15%, medium: 15–20%, full gut: 20–30% contingency recommended.

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Frequently Asked Questions

Why do rehab budgets always go over?

How to set contingency for older properties?

What reduces contingency risk?