Contingency allowance
The Contingency Allowance is a percentage added to your total projected expenses to cover unforeseen or unexpected costs.
It provides a financial buffer in your maintenance plan, helping you stay on budget even when actual costs are higher than estimated.
How it works
Once all tasks and costs are calculated, the contingency allowance applies as a percentage on top of the total.
For example:
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Total planned cost: $100,000
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Contingency allowance: 5%
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Total with contingency: $105,000
This additional amount does not correspond to a specific task — it represents a reserve to handle unplanned events such as:
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Emergency repairs
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Unexpected price increases
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Delays or variations in project scope
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Unforeseen maintenance requirements
Adjusting the allowance
You can update the contingency percentage at any time to reflect your organisation’s risk tolerance or financial strategy.
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A lower percentage (e.g. 2–5%) may be appropriate for stable, predictable portfolios.
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A higher percentage (e.g. 10–15%) may suit older buildings, complex assets, or environments with high uncertainty.
Updating the contingency allowance automatically recalculates your overall projected cost to include the revised buffer.
Summary
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The contingency allowance is a risk buffer added to total expenses.
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It helps ensure your budget remains resilient to unforeseen costs.
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You can adjust the percentage to match your level of financial caution or project complexity.