What does contingency mean in construction?
Short definition
Contingency is money or time reserved for unknowns, risks, or incomplete information.
Longer explanation
Construction contingencies may be held by the owner, contractor, or project team depending on the contract and project phase.
Example in context
“The project team reviewed the contingency during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers
Related terms
Related resources
Construction Change Management TermsTerms used to identify, price, direct, approve, and record construction changes.Construction Estimating TermsEstimating, takeoff, pricing, contingency, allowance, unit price, budget, and job cost terms.Allowance vs ContingencyLearn the difference between an allowance and contingency in construction pricing.Estimate vs Quantity TakeoffCompare cost estimating with quantity takeoff work.Construction Estimating ProcessHow construction estimates move from scope review and takeoff to pricing, risk, and final review.