Rehab contingency

How to Track Rehab Contingency on a House Flip

The contingency is there for uncertainty, not to make the starting budget look larger. Keep it separate and measure how much approved budget drift has consumed.

The short version

Track rehab contingency as a separate reserve and see how approved scope changes and pending work consume the remaining cushion.

Keep contingency separate from projected cost

A contingency reserve should not automatically be treated as expected spend. The projected rehab cost changes when actual scope changes are approved.

Apply net approved changes

Approved additions consume the cushion while credits can restore it. Track the net movement rather than additions alone.

Stress-test pending scope

Before approving another change, compare the remaining contingency with current pending exposure so you know what cushion would be left.

Frequently asked questions

What should I track on a house flip rehab?

Keep the starting rehab budget, contractor commitments, approved cost changes, pending scope, payments by contractor or vendor, and contingency. Together those numbers show the current projected rehab cost and where the cash is going.

Should contractor commitments increase the rehab total?

Not automatically. A contractor commitment can be an allocation inside the starting rehab budget. Later approved scope increases are what move the projected rehab cost above that baseline.

How should I track multiple contractors?

Use a consistent contractor or vendor name on commitments, cost changes, and payments. That gives you a property-level total and a contractor-level view without separate spreadsheets.

Is RenoTally construction-management software?

No. RenoTally stays focused on the money side of the rehab: budget, contractor commitments, cost changes, payments, contingency, and projected final cost.

Prefer to calculate it instead of doing the math by hand?

See how much rehab contingency approved cost changes have consumed and how much cushion remains for the rest of the flip.

Open the free calculator