Introduction

A renovation budget should not use every pound on the work you can already see.

Once floors are lifted and walls are opened, even a carefully planned project can reveal something unexpected.

A contingency gives you a financial safety net.

What is a contingency?

A contingency is money kept outside the main project budget for genuine unknowns.

It is not a fund for upgrading the kitchen or adding extra work halfway through.

How much should you keep?

For many renovations, around 10–15% of the project budget is a sensible starting point.

A newer property with a clearly defined scope may justify the lower end. An older home or complicated structure may need more breathing room.

What might it cover?

Common surprises include hidden damp, damaged timbers, outdated wiring, drainage problems and additional structural work.

Costs can also arise when previous alterations were carried out poorly.

Do not spend it too early

Try to protect the contingency until the riskier stages are complete.

If the later stages arrive without major surprises, you can then decide what to do with any remaining money.

Final thoughts

A contingency cannot remove uncertainty, but it makes uncertainty easier to manage.

Building it into the budget from the beginning is far less stressful than finding extra money halfway through the renovation.