In construction estimating, what is a common practice to account for construction delays?

In construction estimating, adding contingency funds is a widely accepted practice to account for potential construction delays. This approach recognizes the inherent uncertainties and risks associated with construction projects, such as weather interruptions, labor shortages, or unexpected site conditions. By allocating a portion of the budget as contingency, project managers can build financial flexibility into the estimate. This allows for adjustments to be made without significantly impacting the overall budget or cash flow if delays occur.

Incorporating contingency funds helps ensure that the project can still be completed satisfactorily, even when challenges arise. This practice reflects a proactive risk management strategy, where funds are set aside specifically to address unforeseen issues rather than trying to absorb costs or reallocate resources at the last minute.

While reducing manpower or increasing material costs might be responses to project delays, they do not address the financial implications of those delays in the same way contingency funds do. Similarly, shortening project timelines without adequate planning can lead to rushed, subpar work and may not necessarily resolve the underlying issues causing the delays.