Bands by scheme risk
- 5 percent: simple new build on cleared, surveyed greenfield with a tested ground.
- 7.5 percent: typical medium-rise residential, BCIS general.
- 10 percent: PDR conversion with prior approval; brownfield with light remediation.
- 12 percent: Victorian / period conversion in poor condition.
- 15 percent: heritage or unknown-structure work (barns, churches, mills).
Where contingency sits in the stack
Contingency goes above hard + soft costs (build + fees + s106) and below finance roll-up. It is a cost line, not a deduction from profit; do not double-count by reducing target return for risk and adding contingency.
Lender override
Lender monitoring surveyors typically run their own contingency assumption and may override developer figures. Build to the higher of the two on the appraisal so lender stress-tests do not abort the deal mid-build.