Contingency
An amount of money held in reserve to pay for accidental or additional unforeseen costs during a construction project.
Contingency refers to funds set aside to cover unexpected costs or changes in a project. It provides a financial buffer to manage risks and uncertainties, helping to prevent budget overruns and ensure project stability.
Used in a sentence
The project budget includes a contingency to cover unforeseen expenses.
Stay updated on what’s happening in construction.
Subscribe to Blueprint, Procore’s free construction newsletter, to get content from industry experts delivered straight to your inbox.
Learn MoreLearn more about Contingency
Mastering Capital Project Risk Management Across the Project Lifecycle
Capital projects — construction of significant infrastructure such as highways, utilities, or large-scale structures like hospitals or office buildings — have long timelines and with longer construction time comes greater risk. These projects also often involve substantial financial investment and urgent infrastructure improvements, which exacerbate risks for owners and interest from the community. Risk management […]
How GCs Can Use Action Plans to Minimize Risk
If general contracting firms could see the future, they would be much more profitable companies. Precognition would help them plan around supply chain issues and bid to win jobs and still maximize profit. While knowing the future is impossible, predicting it isn’t. General contractors (GCs) can use lessons learned on past projects to assess their […]
How Close Are We to Bridging the Design-Build Divide?
For decades, construction decisions have often been made based on gut instinct. But what if the real barrier to transformation isn’t technology—it’s the divide between design and construction? In episode 18, we explore whether the industry is finally ready to bridge this fundamental gap with Paul Hedgepath, Director of Virtual Construction at MJ Harris Construction, […]
Retrofitting Aging Infrastructure: 5 Essentials for Managing MEP Risk
MEP contractors help preserve aging infrastructure by bringing systems to contemporary standards in sustainability, comfort and accessibility. Although the opportunities are unique, retrofits of existing buildings present known obstacles and unknown surprises that heighten risk and strain efficiencies. This article explores the challenges of retrofitting aging infrastructure — and five essentials for MEP contractors to […]
How can we improve this glossary entry?
By clicking this button, you agree to our Privacy Notice and Terms of Service.