Renovation Guides
Change orders and hidden damage
What commonly hides behind walls, floors and roofs in Florida homes, how change orders should work, and how to protect your budget when surprises show up.
Renovation Guides
How Much Contingency Should You Budget for a Remodel?
How much to set aside for surprises on a Florida remodel, what a contingency should cover, and the Florida-specific costs that are not contingency at all.
Last updated: 2 min readBy the Florida Renovation Guide editorial teamTopic: Permits & Contractor Guides
The short answer
- A common rule of thumb is to set aside 10% to 20% of the construction budget for unexpected costs.
- Lean toward the higher end for older homes, bathrooms, kitchens, reroofs and anything that opens walls, floors or the roof deck.
- A contingency is for genuine surprises such as rot, termite damage or failed drains, not for upgrades you decide on mid-project.
- Permits, design and engineering fees, insurance changes and living costs during the work are separate line items, not contingency.
On this page
Every experienced contractor has a story about what they found behind a wall or under a roof. A contingency is the money you set aside so that story doesn't derail your project.
The rule of thumb
Set aside 10% to 20% of your construction budget for unexpected costs. It's a widely used planning guideline, not a law, and where you land depends on the project.
| Situation | Suggested contingency |
|---|---|
| Newer home, cosmetic work (paint, flooring, cabinets in place) | About 10% |
| Typical bathroom or kitchen remodel | About 15% |
| Older home, reroof, wall removal, plumbing changes, additions | 20% or more |
If your house is older, our guide to renovating an older Florida home covers what to check before you settle on a number.
What it should cover
- rotted roof decking beyond what the contract includes
- water damage and rot behind showers, tubs and windows
- termite damage
- failed drain lines or old plumbing that has to be replaced
- electrical upgrades needed to meet code
- code-required work discovered during inspections
See change orders and hidden damage for how these usually show up.
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What it shouldn't cover
Upgrades you decide on mid-project, such as better tile, a bigger island or extra lighting, aren't surprises. Budget for them separately, or decide before you sign.
Costs that aren't contingency
Plan these as their own line items:
- Permits and fees, including plan review and re-inspections
- Design and engineering, such as drawings, structural engineering or product approval documentation
- Recording fees for the Notice of Commencement
- Living costs if you need to move out during a large remodel
- Insurance changes, such as builder's risk coverage on a large project
- Storage and moving for furniture
- Hurricane season delays, which can add costs for temporary protection and rescheduling
Making the contingency go further
- Ask for unit prices in the contract for likely extras.
- Pay as work progresses, not ahead; see contractor deposits.
- Do your inspections early: a plumbing camera inspection or roof assessment before signing can turn unknowns into known costs.
For the overall plan, see renovation timelines and common renovation mistakes in Florida. For project prices, browse our cost guides. Our cost guides for a bathroom remodel in Melbourne and a whole-house remodel in Melbourne show a contingency added to example budgets.
Frequently asked questions
Should I tell my contractor about my contingency?
You don't need to share the amount. What matters is that the contract sets out how hidden conditions and changes are priced, so any use of the contingency is documented and fair.
What if I don't use the contingency?
Great. Keep it until the final inspection and punch list are done, then decide whether to spend it on extras or keep it.
Is a contingency the same as an allowance?
No. An allowance is a budget in the contract for items you haven't chosen yet, like tile or fixtures. A contingency is your own reserve for surprises.
Sources and further reading
- Roof Replacement Cost in Florida (This Old House)
- Section 489.126, moneys received by contractors (The Florida Senate)
We summarize official information in our own words and link to the source. Requirements can change, so confirm details with the source before relying on them. Our editorial standards
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