Construction Contingency Planning

As a general contractor specializing in luxury residential projects, one of the most common questions we receive during cost analysis is about the contingency account. For many clients, particularly those working under a cost-plus contract, the term raises curiosity: What exactly is contingency, and why is it necessary?
The fact is, contingency is not just a line item on a budget—it is an essential tool that makes the construction process more efficient, transparent, and seamless for everyone involved.