Setting aside 10 to 15 percent of the project cost as a contingency is common advice for a remodel. That reserve covers things you cannot see until walls and floors are opened, such as damaged subfloor or old plumbing, plus any upgrades you decide on once the work is underway.
A contingency is money you plan for but hope not to spend. On a $40,000 kitchen, 10 to 15 percent means holding back roughly $4,000 to $6,000. On a $20,000 bathroom, it means about $2,000 to $3,000. Keep it separate from the main budget in your head, so the estimate number is what you expect to pay and the contingency is your cushion.
Older homes tend to need the higher end of that range. Much of the housing in the Inland Empire and Orange County dates from the 1950s to the 1970s, and removing old tile or cabinets can reveal water damage, worn subfloor or outdated supply lines that need attention. Bathrooms in particular can hide slow leaks behind the tub or around the toilet that only show up during demolition.
The other common use for contingency is your own choices. Once you see the room take shape, you may want a better faucet, an extra outlet location or a tile upgrade. A clear written estimate keeps those changes visible. If you finish the project without touching the contingency, that money stays with you, and the remodel came in on budget.
Answered by Legacy Construction & Design · CA License #790442 · October 2026