Types of Building Project Contingencies

Building projects are complex and despite the best planning, there are times when unexpected issues arise that cause delays and additional costs. To mitigate these risks, project managers include contingencies in their project plans. In this article we take a quick look at the different types of building project contingencies to help you better understand how to plan for them.

The term ‘building contingency’ can refer to both a possible future event and a reserve fund set aside during the planning phase of a building project to cover unexpected costs that may arise. Having a contingency in place helps project teams respond quickly and effectively, minimising the impact of unexpected events and keeping the project on track to success.

·     Modifications to the construction plans requested by the client, architect, or other stakeholders

·     Unforeseen site conditions that require additional work or resources, such as soil or environmental issues

·     Permit and inspection delays

·     Labour and material shortages

·     Weather-related delays

·     Equipment failure

·     Design errors or omissions

·     Unforeseen structural issues

·     Unforeseen changes in building codes or regulations

• Weather delays
• Permit and inspection delays
• Material shortages
• Labour shortages
• Design modifications
• Site conditions
• Equipment failure
• Unforeseen structural issues
• Contractor delays

• Contaminated soil discovered during excavation or site preparation that requires additional work or disposal measures
• Endangered species found on the construction site may require changes to the construction plan or additional permits
• Wetlands on the construction site may require changes to the construction plan and/or permits
• Air quality polluted by dust, smoke or chemicals may require additional measures
• Excessive noise caused by construction activities that may require additional measures to reduce the impact on the surrounding environment or nearby residents
• Waste management, including recycling and responsible disposable of contaminants
• Energy efficiency measures may need to be taken
• Water conservation in cases of low flow plumbing fixtures and irrigation systems

• Permitting issues
• Zoning changes
• Land disputes
• Easements and rights-of-way
• Environmental regulations
• Labour laws and regulations
• Contract disputes
• Intellectual property rights
• Insurance coverage

While it's impossible to predict every risk, setting aside contingencies can act as a buffer if an unexpected event does arise.

Jaws Contracting (NT) has decades of experience in contracting and project management, and our team is well-equipped to handle jobs of all shapes and sizes. Get in touch today via our contact form or call 1300 792 974 for a quote for our professional building project management services or to discuss how we can help support your project.

Call 1300 792 974 today to learn how we can help you manage your building project more effectively.