Cost Estimator how-to

How to Add Contingency to an Estimate

Contingency covers unknowns.

Updated By the Career Education Institute Curriculum Team
Quick answer

Contingency covers unknowns. In short: list; rate; estimate, then complete the remaining steps below.

Step by step

  1. List risks.

  2. Rate each risk.

  3. Estimate costs.

  4. Pick a percentage.

  5. Document assumptions.

  6. Review with leaders.

Safety reminders for cost estimators

  • Wear PPE on site visits
  • Price safety into bids
  • Include site safety requirements
  • Follow site rules

Takeoff · Bid · Unit price · Overhead · Markup · Contingency: see the full cost estimator glossary.

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