Episode 9: Contingencies (What Could Go Wrong?)

In this episode, Rick Bell explains the importance of budgeting for unforeseen events when building a custom home. He shares real-world examples of construction surprises — like inadequate engineering or scope gaps between trades — and how a contingency line item in your budget can help resolve these issues efficiently without delaying your project. 

Whether you're building a high-tech modern home or a traditional estate, this episode will show you how to plan for the unexpected and protect your budget and timeline.

What You’ll Learn

• What a contingency is — and why it’s essential in a custom home budget
• How scope gaps, design omissions, and code changes can trigger unexpected costs
• Real-world examples of contingency use, including structural errors and inspection surprises
• How much money to set aside for contingencies based on project complexity
• Why a contingency can save time and stress — even if others are ultimately at fault

Glossary of Terms

Contingency: A budget allowance for unforeseen conditions or events during construction.
Scope Gap: A detail or task not clearly assigned to any trade, which can lead to added costs or delays.
Change Order: A formal change to the contract that adjusts scope, price, or schedule.
Egress Window: A window large enough to allow emergency exit, required in certain rooms by code.
Code Changes: Updates or new interpretations of building codes that can add to construction costs.
Errors and Omissions: Mistakes or oversights in design documents that impact construction.

Resources & Links

- Landmark Custom Homes: https://www.landmarkcustomhomes.com/

Connect With Rick

- Email: Rick@TIGTCH.com 

- LinkedIn: https://www.linkedin.com/in/rick-bell-lch/ 

- Instagram: https://www.instagram.com/homesbylandmark/